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F4-T1-21-TERMS, MONEY, FORMS OF BUSINESS

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

It is the simplest form of business organization.

a)

Sole Proprietorship

b)

Partnership

c)

Public limited company

d)

Private limited company

2.

This is a form of business ownership where two or more people act as co-owners.

a)

PARTNER

b)

PARTNERSHIP

c)

BUSINESS PARTNER

d)

COMPANY

3.

It is a form of business ownership, where there is one owner who's responsible for the business.

a)

SOLE PROPRIETORSHIP

b)

PROPRIETORSHIP

c)

SOLE PREPRIOTERSHIP

d)

SOAL PROPREITORSHIP

4.

Sole Proprietorship: All responsibilities are yours. This is a/an

a)

Advantage

b)

Disadvantage

5.

Two heads are better than one. What does this represent?

a)

Advantage: Sole Proprietorship

b)

Disadvantage: Partnership

c)

Advantage: Partnership

d)

Disadvantage: Sole Proprietorship

6.

Advantages of a sole trader are:

(Choose all answers that apply, more than one answer can be chosen)

a)

Limited liability

b)

The owner makes all the decisions

c)

The owner takes all the profit

d)

Can raise substantial capital

7.

Advantages of a partnership are:

(Choose all answers that apply, more than 1 can be chosen)

a)

The partners split the profit

b)

Unlimited liability

c)

Raise more capital than a sole trader

d)

Share the workload

8.

This type of organization is a legal entity separate from its owners. It is

a)

Sole proprietorship

b)

Unincorporated

c)

Incorporated

d)

None of the above

9.

Which of the following best describes the term limited liability? If the business fails:

a)

Personal possessions of the owner can be taken to pay any debts

b)

The owner is personally liable for all the debts of the business

c)

There is no limit on the amount the owner has to pay to settle debts

d)

The owner only loses the amount invested in the business

10.
These business owners may have trouble raising capital.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
11.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
12.

The main disadvantage of a __________ is that each owner is fully responsible for the acts of all other owners.

a)

Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

13.

(a)   is the exchange of goods or services without the use of money.

14.

(a)   is the excess of revenues over expenses in a business enterprise.

15.

(a)   is a person who purchases goods and services for his own personal needs.

16.

Money has what if it doesn't deteriorate when it is being handled?

a)

Scarcity

b)

Divisibility

c)

Durability

d)

Portability

17.

Money has what if it can be broken down into smaller units so it can be used as needed?

a)

Divisibility

b)

Portability

c)

Scarcity

d)

Durability

18.

What is money if it is available but only in a limited supply?

a)

Portable

b)

Durable

c)

Divisible

d)

Scarce

19.

Money or other substance generally accepted as payment for goods and services.

a)

Measure of value

b)

Medium of exchange

c)

Scarcity

d)

Store of Value

20.

What are the 3 functions of money?

(Choose 3 answers)

a)

Divisible

b)

Store of Value

c)

Medium of Exchange

d)

Acceptable

e)

Measure of Value