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WorksheetsTYPES OF BUSINESS ORGANISATIONS
Total questions: 36
Worksheet time: 26mins
Sole trader businesses are owned and managed by..
2-20 people
Multiple owners
1 person
Partners
Which of the following businesses is likely to have the most amount of capital
Partnership
Sole Trader
Public limited
Number of partners in a partnership business are.....
Unlimited
200 maximum
2 to infinite
2-20 partners
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
Partnership
Sole Proprietorship
Franchise
Private limited company
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.
Sole Proprietorship
Franchise
Partnership
Private Limited Company
Which of the following is the definition for sole proprietorship
business investment that involves renting or leasing another successful business model
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
Which of the following is the definition for Franchise
business investment that involves renting or leasing another successful business model
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
Which of the following is an advantage of a partnership?
Which of the following is an advantage of a partnership?
partnerships can usually attract financial capital more easily than proprietorships.
management is hard between two or more people
They are inefficient.
This type of business is owned by many people called shareholders.
Sole Proprietorship
Partnership
Limited Companies
Franchise
This type of business is a contractual agreement with a parent company to sell its products/services in another area.
Sole Proprietorship
Partnership
Corporation
Franchise
Companies
Nike, Google and Apple are examples of.....
Sole Proprietorships
Partnerships
Limited Companies
Franchises
Advantages of this type of business include: selling shares to raise money, limited liability.
Companies
An advantage of this business is that it can raise starting capital through the member's contributions
Sole Proprietorship
Partnership
Limited Companies
Franchise
Which of the following business has a unlimited liability
Companies
A partnership has ______________ personal liability
unlimited
limited
In ... partnership, all of the partners actively run the business and are liable for company debts.
a limited
public
an unlimited
Public limited companies are usually large, well-known businesses, set up by at least two ...
franchisees
shareholders
members
As a company grows, it can take advantage of ....
acquisition
joint venture
economies of scale
One of the claimed advantages of a sole trader business is that:
owners have limited liability
shares can be sold to raise capital
decisions and responsibilities can be shared
the owner has complete control
One of the disadvantages of a sole trader business is that:
capital is limited to owner’s savings and bank loans
decisions take too long to make
as they are government owned there is no profit motive
the owners may disagree
One of the advantages of a partnership form of business organisation is that:
all partners always have limited liability
shares can be sold on the Stock Exchange
the business survives the death of the partners
the business has access to more capital than a sole trader
Which of the following is NOT a feature of a private limited company?
Shares can be issued to raise capital
Shares can be bought and sold on the Stock Exchange
All owners of the business have limited liability
The business continues after the death of shareholder
Which of the following statements best applies to a public limited company (plc)?
It is owned by the government and is in the public sector
It is owned by shareholders who can sell their shares in the Stock Exchange
It is quick and easy to set up with few legal formalities
Its accounts can be kept private and it receives little coverage in the business press
The main reason why the owners of many private limited companies convert their businesses into public limited companies is because:
they do not want to remain in the private sector
they want to gain the benefits of limited liability
they want to keep the annual accounts secret
they want to raise additional capital to expand the business
One of the main drawbacks of many public limited companies is that:
there can be a loss of control by the original owners as additional shares are sold
firms in the public sector are often less efficient
if the company were to fail the shareholders could lose all of their assets
workers have to be asked for their opinions before major decisions are taken
Which of the following statements about most public limited companies is true?
They are owned and controlled by the workers
They are owned by the directors but controlled by the shareholders
The are owned by shareholders but controlled by directors
They are owned and controlled by the government
One of the reasons for a business buying a franchise is because:
it is always much cheaper than setting up a new business venture
there is complete control over important decisions
the business can use its own name in advertisements
the risks of failure are lower as it is buying a well known business idea
One of the advantages to a business of selling a franchise licence to franchisees is that:
the business can expand more quickly
the franchisor owns all of the shops
the businesses buying the franchises are certain to be successful
the products sold in each shop will be different
One of the limitations for an entrepreneur of setting up a new business as a franchise is:
the profits of the franchised business will be lower than if it was not a franchise
a share of the costs will have to be paid to the franchisor
some decisions will be taken by the franchisor not the franchisee
consumers will be less likely to have heard of the franchisor than the entrepreneur
It is an artificial being created by the operation of law, having right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence is called_________.
Cooperative
Company
Partnership
Sole Proprietorship
A document which includes the name, objectives, powers, and registered address of a company is called ______.
Constitution of Corporation
By-laws of corporation
Articles of Incorporation
Articles of Partnership
a business that is owned and controlled by the government is called
sole trader
franchise
partnershipp
company
incorported business means
a company has unlimited liability
a company exits separately from the owners and will continue to exist if one of the owners die
a company can not be sued under its own name
A disadvantage of a public corporation is that
the government can use these businesses for politacal reasons
the government can step in to nationalise an important business that is failing
the government can provide essential services to its citizens
the government can provide services that are considered less important by the private sector businesses
