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Worksheets

Business Types

Total questions: 40

Worksheet time: 13mins

Name
Class
Date
1.
What is a business owned and operated by one person?
a)

Sole Trader

b)
Partnership
c)
Corporation
2.

What is a business owned by stockholders/investors but operated by others?

a)

Sole Trader

b)

Partnership

c)

Private or Public Limited Company

3.
What is a business owned and operated by two or more people?
a)

Sole Trader

b)
Partnership
c)
Corporation
4.

What is ONE advantage of a sole trader?

a)
You make ALL the decisions
b)
Easy to raise money
c)
You have to share profits
5.

Which is ONE disadvantage of Sole Trader?

a)
Less direct control
b)
Disagreements
c)
Hard to raise money
6.
What is ONE advantage of a Partnership?
a)
Someone else can help with decisions, etc.
b)
Double taxes
c)
Disagreements
7.
What is ONE disadvantage of a Partnership?
a)
Easier to start
b)
Have to share the profits
c)
Help in making decisions
8.

What is ONE advantage of a Private or Public Limited Company?

a)

Difficult to start

b)

Make all of the decisions

c)

Easy to raise money!

9.

What is ONE disadvantage of a Private or Public Limited Company?

a)

Disagreements

b)

Less direct control

c)

The risk is all on one person

10.
This type of business is owned by two or more people.
a)

Sole Trader

b)
Partnership
c)
Corporation
d)
Franchise
11.

Law firms and doctor's offices are good examples of.....

a)

Sole Proprietorships

b)

Partnerships

c)

Limited Companies

d)

Franchises

12.

Nike, Google and Apple are examples of.....

a)

Private Limited Companies

b)

Partnerships

c)

Public Limited Companies

13.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)

Sole Trader

c)
Corporation
d)
Franchise
14.
Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.
a)

Sole Trader

b)
Partnership
c)
Corporation
d)
Franchise
15.

Disadvantages of this business type include: needs a partnership agreement, partners might not get along, owners share profits, unlimited liability.

a)

Sole Trader

b)

Partnership

c)

Private Limited Company

d)

Public Limited Company

16.

Advantages of this type of business include: selling stock to raise money, limited liability.

a)

Sole Trader

b)

Partnership

c)

Public Limited Company

d)

Franchise

17.

Disadvantages of this type of business include: company is taxed on profits, regulated by the government, and hard to start.

a)

Sole Trader

b)

Partnership

c)

Private and Public Limited Companies

18.

2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses. What kind of business have they?

a)

Sole TRader

b)

Partnership

c)

Corporation

19.

3. Mary opened a dance studio. She receives all the profits from her students’ lessons.

a)

Sole Trader

b)

Partnership

c)

Corporation

20.

Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.

a)

Sole Trader

b)

Partnership

c)

Corporation

21.

Mr. Lewis pays taxes on dividends for stocks he owns in a manufacturing company. The company also pays taxes on its income before distributing it to stockholders.

a)

Sole Trader

b)

Partnership

c)

Corporation

22.

Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.

a)

Sole Trader

b)

Partnership

c)

Corporation

23.

Unger and Unger is a law firm consisting of two brothers who started their own business. They both are responsible for all profits and risks that their firm will have.

a)

Sole Trader

b)

Partnership

c)

Corporation

24.

Private Limited Companies are owned by

a)

Sole Traders

b)

Partners

c)

Shareholders

d)

The Government

25.

Sole Traders have

a)

Unlimited Liability

b)

Limited Liability

26.

Private Limited Companies have

a)

Limited Liability

b)

Unlimited Liability

27.

Partnerships have

a)

Limited Liability

b)

Unlimited Liability

28.

Sole Traders, Partnerships and Private Limited Companies are in which sector of the Economy?

a)

Private Sector

b)

Public Sector

c)

Third Sector

29.

Which of the following is the least complicated to set up?

a)

Sole Trader

b)

Partnership

c)

Private Limited Company

30.

A sole trader gets to keep any profits made for themselves

a)

True

b)

False

31.

How many People can be in a Partnership?

a)

Unlimited

b)

2 only

c)

Between 2 & 20

d)

Between 2 & 10

32.

The shareholders elect a Board of Directors to run a Private Limited Company

a)

True

b)

False

33.

Private Limited Companies have to make Financial Information Public

a)

True

b)

False

34.

Which 2 of these types of organisations must share their profits?

a)

Sole Trader

b)

Private Limited Company

c)

Partnership

35.

What does PLC stand for?

a)

Public Limited Company

b)

Profit/Liability Curve

c)

Princesses Like Crowns

d)

Probably Locking Cages

36.

What is the simple difference between a public and private limited company?

a)

A public limited company is public and a private limited company is private.

b)

There are no differences.

c)

The public limited company can quote shares in a stock exchange while a private limited company cannot.

d)

One does not deal with shares while the other does.

37.

What are some documents required for the formation of a public limited company?

a)

Article and memorandum of association.

b)

A car.

c)

An already established business.

d)

A private jet.

38.

What are the main managers/owners of a public limited company called?

a)

Owners and managers

b)

Bosses and mentors

c)

Directors and shareholders

d)

Principals and boards

39.

What does limited liability mean?

a)

liable for all debts of the business

b)

liable for no debts of the business

c)

liable for debts up to the amount invested only

40.

What does unlimited liability mean?

a)

liable for all debts of the business

b)

liable for no debts of the business

c)

liable for amount invested in the business only