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Business Basics Assessment

Total questions: 15

Worksheet time: 14mins

Name
Class
Date
1.

A business that is owned and operated by 1 one person is known as a/an?

a)

Parntership

b)

Sole Trader

c)

Corporation

d)

Francise

2.

Which type of business is owned and operated by 2-20 persons?

a)

Partnership

b)

Sole Trader

c)

Corporation

d)

Franchise

3.

Below are 4 options select the options that best fits the answer.

What are the 2 advantages of a sole trader listed below?

a)

Capital is easy to raise

b)

Profits are not shared

c)

It is easy to operate

d)

If the owner dies the business will also die

4.

Give one example of a Sole Trader business.

4 lines
5.

What are the three type of Partners?

a)

Sleep over partners, ordinary partners and limitation partners

b)

Sleeping partners, original partners and limited partners

c)

Sleeping partners, ordinary partners and limited partners

d)

Sleep over partners, original partners and limitation partners

6.

When starting up a Partnership the partners must sign a document which outlines the agreement between all the partners entering into the business. What is the name of this document?

a)

The Partnership Arrangement

b)

The Partners Discipline

c)

The Partnership Dean

d)

The Partnership Deed

7.

Another name for the Partnership Deed is the (a)   .

8.

Identify 2 information that the Parntership Deed/Agreement should include.

4 lines
9.

A company is a legally formed business whose owners may be separate from those who control and manage it.

a)

True

b)

False

10.

What are the two main types of company?

4 lines
11.

A shareholder is a person who sells shares to a company.

a)

True

b)

False

12.

Within a Public Limited company there are no restrictions on the sale of shares.

a)

True

b)

False

13.

Identify 1 characteristic of a Public Limited Company.

4 lines
14.

What is a Private Limited company?

a)

A Private Limited company is a business that sells/issues shares to family, friends or employees to raise capital.

b)

A Private Limited company is a business that sells/issues shares to the general public to raise capital.

c)

A Private Limited company is a business that is owned and operated by shareholders.

15.

One advantage of a Private Limited company is

a)

The shareholders have limited liabilities.

b)

The company is unable to raise capital from the public.

c)

Shareholders are only allowed to sell shares to family members.

d)

There is little to no privacy.