NEW
Font size
WorksheetsForms of Business Ownership
Total questions: 10
Worksheet time: 8mins
What is the main advantage of being a sole trader?
Unlimited liability
Limited liability
Be able to make quick decisions
Who is limited liability an advantage to?
Shareholders
Sole Traders
Stakeholders
Who is a company controlled by?
Shareholders
Stakeholders
Managers
What legal identity does a company have in the eyes of the law?
No legal identity
Its own legal identity
As shared legal identity with shareholders
Who has legal responsibility to settle debts in a company with unlimited liability?
Owners
Shareholders
Stakeholders
Ordinary shares traded on the stock exchange are those issued by
Private Limited Companies
Public Limited Companies
Sole Traders
The most important protection given by law to shareholders of a limited company is
Right to receive dividends
Limited liability
Enhanced employment rights
An advantage of setting up as an incorporated rather than unincorporated business is that the business:
Will have unlimited liability
Will be able to obtain bank finance
Remains in existence after a change in ownership
Which one of these statements about sole traders is FALSE? A sole trader...
Has unlimited liability
Can only have one employee
Still has to pay tax on profits earned
As a result of the concept of limited liability, shareholders of an incorporated business
Are only liable for their investment
Have limited control over business decisions
Are limited in the dividends they can be paid
