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Forms of Businesses

Total questions: 42

Worksheet time: 32mins

Name
Class
Date
1.
Which type of business has only one owner?
a)
Sole Trader
b)
Partnership
2.
Which type of business has unlimited liability?
a)
Sole Trader
b)
Partnership
c)
Both
d)
Neither
3.
Which type of business is the owner allowed to keep 100% of the profits?
a)
Sole Trader
b)
Partnership
c)
Both
d)
Neither
4.
Which type of business has limited scope for expansion and might not continue upon death of the owner?
a)
Sole Trader
b)
Partnership
c)
Both
d)
Neither
5.
Which type of business has to share profits, responsibility and liabilities?
a)
Sole Trader
b)
Partnership
c)
Both
d)
Neither
6.

An association of 2 to 20 individuals operating a business to make a profit is called

a)

partnership

b)

franchise

c)

joint venture

d)

sole trader

7.

Ease in formation, independence and simple organizational structure are all advantages of

a)

partnership

b)

franchise

c)

joint venture

d)

sole trader

8.

A sole trader is considering entering a partnership, because

a)

capital and expertise will increase

b)

there will be guaranteed remuneration

c)

independence exists greatly with policy alterations

d)

disagreement is non-existent

9.
What is unlimited liability?
a)
If the business fails you will not lose personal possessions
b)
If the business fails you will lose personal possessions
10.
A sole trader is
a)
a business with one employee
b)
a business selling one product
c)
a business with one owner
d)
a business with one shop/office
11.
A disadvantage of being a sole trader is
a)
a heavy workload creates stress and pressure
b)
a second opinion on important decisions is always available
c)
arguments and disagreements can harm the progress of the business
d)
the owner gets a smaller share of the profits
12.

Which of the following is an advantage of sole proprietorship?

a)

Owner has complete control

b)

Owner gets all the stress

c)

Cannot raise capital

d)

All the above

13.

Franchisors usually provide all of the listed items except....

a)

Advertising

b)

Training

c)

Loan

d)

Equipment

14.

A limited liability partnership means

a)

liability is unlimited

b)

liability is shared up to a certain percentage

c)

no liabilities

15.

Private Limited Companies have

a)

Limited Liability

b)

Unlimited Liability

16.

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

a)

Private Sector

b)

Public Sector

c)

Third Sector

17.

Private Limited Companies have to make Financial Information Public

a)

True

b)

False

18.

The public sector is owned and controlled by the Government?

a)

True

b)

False

19.

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.

20.
Which is a franchisor?
a)
Starts a business
b)
Takes over a business
c)
Buys into an existing brand
d)
Allows others to use their brand name
21.
Fee paid from franchisee to franchisor based on percentage of sales
a)
royalty fee
b)
franchise fee
c)
advertising fee
d)
license fee
22.

A sole trader has one owner but can employ any number of people.

a)

true

b)

false

c)

undecided

23.

Franchiser owns the brand

a)

True

b)

False

24.

Which of the following is not an advantage of the franchisee

a)

Can use an international brand

b)

Start up is fast

c)

Receives advice and training

d)

Can enter new markets

25.

Which of the following is the disadvantage of the franchisor?

a)

May loose local variety and choice

b)

Regular payments to franchisor

c)

looses Independence in running the business

d)

if badly run, the brand will suffer

26.
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 Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
27.
Advantages of this business include: easier to get money from the bank to start, share skills and share risks.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
28.

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

a)

Sole Proprietorship

b)

Partnership

c)

Public limited Company

d)

Franchise

29.
McDonald's and Burger King are examples of....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
30.

What is a Cooperative?

a)

A person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit seeking enterprise or concern.

b)

A form of business organization that is owned and run jointly by its members, who share the profits or benefits.

c)

A form of business organization in which the owners have shares in a separate legal entity that itself can own assets and borrow money.

d)

A form of business organization similar to a partnership but offering its owners the advantage of limited financial liability.

31.

What type of cooperatives are owned by the people who work for the company?

a)

Worker cooperatives

b)

Producer cooperatives

c)

Consumer cooperatives

d)

Purchasing cooperatives

32.

Which of following is a disadvantage of a public limited company?

a)

Unlimited liability

b)

Large sums of money can be raised

c)

The business is at risk of takeover

d)

Limited liability

33.

______________ is a restriction on the amount of money that owners can lose if the firm goes bankrupt

a)

Unlimited liability

b)

Personal liability

c)

Limited liability

d)

Shared liability

34.

A _____________ is an incorporated business that allows the public to buy and sell shares on a stock exchange

a)

cooperative

b)

private limited company

c)

public-private partnership

d)

public limited company

35.

It is easy for a sole trader to raise funds

a)

True

b)

False

36.

What is the minimum amount of people required to form a partnership?

a)

1

b)

2

c)

3

d)

More than 5

37.

A partnership requires a written agreement

a)

True

b)

False

38.

Each shareholder has a single vote in a cooperative

a)

True

b)

False

39.

Which of the following is an example of a cooperative ?

a)

Eastern Credit Union of Trinidad and Tobago

b)

The Cooperative Group of Britain

c)

Barbados Public workers credit union

d)

All of the above

40.

Public companies must publish full financial information. This is a

a)

Advantage

b)

Disadvantage

41.

Plumber, baker and hairdresser are examples of...

a)

... cooperatives

b)

... franchising

c)

sole traders

d)

...limited companies

42.

Limited companies have a separate legal identity.

a)

True

b)

False

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