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Worksheets1.2 Types of organizations Review
Total questions: 18
Worksheet time: 15mins
A business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits.
(a)
Shared decision-making is an advantage of what type of organization?
Sole trader
Private limited company
Public limited company
Partnership
The business can be based on the interests or skills of the owner – rather than working as an employee for a larger firm is an advantage of what kind of organization?
Sole trader
Partnership
Private limited company
Public limited company
A limited company, often a large business, with the legal right to sell shares to the general public, its share price is quoted on the national stock exchange.
(a)
Are social enterprises owned and run by their members (usually employees, managers or customers). Their primary goal is to create value for their member-owners.
(a)
A small to medium-sized business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public.
(a)
A business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners.
(a)
Which is an advantage of a public limited company?
Risk of takeover due to the availability of the shares on the stock exchange
Legal formalities in formation
Share prices subject to fluctuation
Separate legal identity
Is a type of non-profit social enterprise that operates in the private sector of the economy. It is not part of a government organization.
(a)
Which sector comprises organizations accountable to and controlled by central or local government (the state)?
(a)
If a business has ‘unlimited liability’, what is the responsibility of the owners?
Paying suppliers within the credit period
Paying dividends to shareholders
Paying none of the debts of the business
Paying all of the debts of the business
Which of the following is not an advantage of operating as a sole trader?
Complete control over decision-making
Greater privacy as owners do not have to disclose their financial information to the public
Paying dividends to shareholders
Easy access to finance to grow the business
A business alliance consisting of between 2 and 20 individual owners who are jointly responsible for the business (although this number can vary between countries).
(a)
What is the sector consisting of businesses owned by private groups or individuals known as?
Secondary sector
Public sector
Private sector
Voluntary sector
Which type of business is owned by shareholders but the shares in the business cannot be advertised or traded on a stock exchange?
Public limited companies
Private limited companies
Partnerships
Sole traders
This is a special type of partnership where some partners contribute capital and enjoy a share of the profits but do not participate in the running of the business.
(a)
This legal status of a business enables its shareholders (business owners) not to be liable for more than the original amount of money invested in the business.
(a)
This is any marketplace where the general public and other companies can buy and/or sell shares.
(a)
