WorksheetsAQA 3.1.1-2 Business
Total questions: 21
Worksheet time: 11mins
Functional objectives are usually set for :
individuals
the whole company
departments
senior management
The 'M' in SMART objectives =
manageable
motivating
marginal
measurable
Costs that alter directly with output level
fixed costs
variable costs
Revenue =
selling price - quantity sold
selling price + quantity sold
selling price x quantity sold
selling price / quantity sold
Unlimited liability applies to :
an LTD
a PLC
a company
a sole trader
Which type of business can sell shares to the public ?
LTD
PLC
sole trader
Which of the following is a disadvantage of being a public limited company?
The business is at risk of takeover
Unlimited liability
Large sums of money can be raised
Limited liability
What are the owners of private and public limited companies called?
Stakeholders
Board of directors
Managers
Shareholders
Private and Public Limited companies both have
Unlimited liability
Limited liability
Which of the following is an advantage of a private limited comapany
You can sell shares openly to anybody around the world
You can choose your own shareholders that are suitable for the business
You can gain more sales as the business is well known
They have unlimited liability
Why does a company issue shares?
To raise money that can be invested in the business
To get more owners
To make more profit
To allow the business to be sold off
What is one advantage of a public limited company?
Unlimited liability
They can buy an unlimited amount of vehicles.
They can tell private limited companies what to do.
Shares are easily transferable.
Which of the following is the least complicated to set up?
Sole Trader
Partnership
Private Limited Company
Shareholders recieve a share of the profits a LTD makes called a
Dividend
Bonus
Commission
Cash Prize
The public sector is owned and controlled by the Government?
True
False
When profits are shared between shareholders. This is called a (a)
What is meant by the term 'unlimited liability'?
Owners do not have to use their own money to pay the debts of their business.
Some sole traders do not know how to manage a business effectively.
If a partner is lazy the business cannot remove them.
The owners of a business have personal responsibility for paying its debts.
What is the simple difference between a public and private limited company?
A public limited company is public and a private limited company is private.
There are no differences.
The public limited company can quote shares in a stock exchange while a private limited company cannot.
One does not deal with shares while the other does.
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
What is meant by the term 'incorporation'?
Two businesses joining together
One business taking over another
Setting up a business as a separate legal entity.
Two separate businesses working together
Which of the following is a good reason for a limited company to become a PLC?
It may become more difficult to reinvest profit to improve the business
The quantity of share capital in the business is likely to increase a lot
As a PLC the business may be subject to a takeover
The owners of the limited company may lose control of the business
