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1.4 Types of Businesses (AS/IG)

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

A father who wants to take his son into the business with him should form this type of business.

a)

Sole Trader

b)

Partnership

c)

Corporation

2.

Someone who wants to control every aspect of their business should form this type of business.

a)

Sole Trader

b)

Partnership

c)

Corporation

3.

Louise and Susan are meeting to plan a new advertising campaign for the town newspaper they own. What type of business do they have?

a)

Sole Trader

b)

Partnership

c)

Corporation

4.

What is a Sole Trader?

a)

A business where 2 or more people share ownership

b)

A business owned by shareholders

c)

A business that is owned by one individual

5.

Which of the following is an advantage of sole trader?

a)

Owner has complete control

b)

Owner gets all the stress

c)

Cannot raise capital

d)

All the above

6.

Partnership requires at least three people

a)

True

b)

False

7.

In partnership, decisions require agreement

a)

True

b)

False

8.

A incorporated business can continue to exist after the death of its owners

a)

True

b)

False

9.

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

a)

Advertising

b)

Training

c)

Loan

d)

Equipment

10.

Private Limited Companies are owned by

a)

Sole Traders

b)

Partners

c)

Shareholders

d)

The Government

11.

Sole Traders have

a)

Unlimited Liability

b)

Limited Liability

12.

Private Limited Companies have

a)

Limited Liability

b)

Unlimited Liability

13.

Partnerships have

a)

Limited Liability

b)

Unlimited Liability

14.

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

a)

Private Sector

b)

Public Sector

c)

Third Sector

15.

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

a)

True

b)

False

16.

The public sector is owned and controlled by the Government?

a)

True

b)

False

17.
Private and Public Limited companies both have
a)
Unlimited Libaility
b)
Limited libaility
18.
Which of the following is an advantage of a private limited comapany
a)
You can sell shares openly to anybody around the world
b)
You can gain more sales as the business is well known
c)
You can choose your own shareholders that are suitable for the business
d)
They have unlimited liability
19.
Why does a company issue shares?
a)
To raise money that can be invested in the business
b)
To make more profit
c)
To get more owners
d)
To allow the business to be sold off
20.

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.

21.
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
22.

Franchiser owns the brand

a)

True

b)

False

23.

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

24.
What is a franchise?
a)
Where a business sells the rights to their brand
b)
Where you have full control
c)
Where you keep all the profits