WorksheetsTopic 2: Setting Up A New Enterprise
Total questions: 10
Worksheet time: 10mins
How many types of business organisation are there?
7
6
8
Which of the following business organisation own by one person only?
Partnership
Sole Trader
Which of the following statement define "sole trader"?
A business that is owned and run by just one person though it may employ staff.
A company that is legally independent from its shareholders, who as a result have limited liability.
A type of business organisation that is owned by two or more people.
Sole trader and partnership is a/an __________.
Incorporated enterprise
Social enterprise.
Unincorporated enterprise.
What are the other common features of Sole Trader and Partnership?
Both business organisation has limited liability.
Both business organisation has unlimited liability.
Both business organisation is an incorporated business.
What is the advantage of start-up a business as sole trader?
It is not easy to raise finance
•The owner is fully responsible for all debt.
•The owner can keep all the profits.
Which of the following is the disadvantages to start-up a business as sole trader?
•Cheap, quick and simple to start the business activity.
•The owner can make his/her own decisions and has full control of their business.
•It is difficult to raise finance, so often the owner has to rely on personal saving.
Which of the following define "Partnership"?
A business that is owned and run by just one person though it may employ staff.
A business that is owned by two or more people, known as the partners.
A company that is legally independent from its shareholders, who as a result have limited liability.
Which of the following statement is the advantages of setting up a new business as partnership?
•The decision-making and workload is shared.
•The decision made by one partner is legally binding on all the others.
•It is difficult to raise finance, so often entrepreneurs have to rely on personal savings.
What is the disadvantage of setting up a new enterprise as "Partnership"?
•The partners have full control of their business.
•The partners can keep all the profits.
•Disagreement and conflicts between partners can slow down the business.
