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WorksheetsChapter 3 (Business Ownership & Ent.)
Total questions: 25
Worksheet time: 19mins
Advantages of this ownership is it have limited liabilities.
Partnership
Sole
proprietorship
Franchises
Corporations
Those are advantages of sole proprietorship except
easy to start due to no legal procedures involved
limited liability
Retention of all profits
no tax imposed on the business income
Three disadvantages of sole proprietorship
Government regulations and increased paperwork
Lack of continuity
Difficulty in hiring staffs
Limited management skills
Shares are issued to public
Private limited
corporation
Public Corporation
Partnership
The owner of corporation is called (a)
State two types of partnership (ans : ___ and ___ )
(a)
One of characteristics of partnership is
2-200 person act as co-owners
2-5 person act as co-owners
2-20 person act as co-owners
2 person act as co-owners
Advantages of partnerships are .... (ans : more than one)
Pooling of skills and knowledge
Retention of all profits
Size of business and capital availability is bigger
Loses are shared
Disadvantages of partnerships are (ans : more than one)
Possibility to have management disagreement
Unlimited liability
Lack of continuity
Frozen investment
This corporation is not traded in Bursa Malaysia
Public corporation
Private limited corporation
The ownership of corporation is divided into
(a)
Two types of shareholder are
Preference shareholder
Ordinary shareholder
Elite shareholder
Four disadvantages of corporations are
Difficulty and expense of formation
Lack of secrecy
Conflict within the corporation
Unlimited liability
Government regulation and increased paperwork
A ____ is a legal agreement between two or more people.
Corporation
Franchising
Partnership
Sole proprietorship
Advantages of this ownership are it have perpetual life, limited liability and ease of raising capital
Partnership
Corporation
Mcdonalds and KFC are example of
Sole proprietorship
Franchise
Corporations
Which of the following forms boards to act as governing bodies and is the most complicated form of business?
Corporation
Franchise
Partnership
Has the right or license to sell a company’s product or service at a designated location?
Franchisee
Franchisor
Own the company and the one who granting the franchise
Government
Franchisor
Franchisee
Three types of franchising
Brand-name item
Local franchise
License distributor
Certain production/
Distribution service
Four advantages of franchise to franchisee
Does not incur high cost of operating outlets
Opportunity to start business with limited capital
Has guaranteed customers
Gain fast and well controlled distrobution of its product
Receive materials use in local advertising
Disadvantages of franchising (ans : more than one)
Franchisor retains great control
Franchisor open new outlet nearby the franchisee outlet
Many lawsuits due to contract disputes
Has to remit certain percantage of biz income to franchisor
a. Ability to adapt changes
b. Independence
c. Enjoys the advantages of sole proprietorship
d. Personal relationship with customers and employees
are the advantages of
Sole proprietorship
Partnership
Small business
Franchise
Small business will need to face disadvantages such as .... ( ans : more than one)
Too many lawsuits due to contract disputes
Risk of failure
Retain all profits
Limited potential
Limited ability to raise capital
Disadvantages of this type of business include: company is taxed on profits, regulated by the government, and hard to start.
Franchise
Sole proprietorship
Partnership
Corporation
