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Types of business organisations

Total questions: 55

Worksheet time: 28mins

Name
Class
Date
1.
This type of business is owned by one person.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
2.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
3.
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.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
4.
What is a major advantage of a business that is a partnership rather than a sole proprietorship?
a)
The responsibility for the business is shared
b)
The business is easy to set up
c)
The partners are not responsible for business debts
d)
The business is easy to sell
5.
What is a business owned by stockholders/investors but operated by others?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
6.
What is a business owned and operated by two or more people?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
7.
What is ONE advantage of a sole proprietorship?
a)
You make ALL the decisions
b)
Easy to raise money
c)
You have to share profits
8.
Which is ONE disadvantage of Sole Proprietorship?
a)
Less direct control
b)
Disagreements
c)
Hard to raise money
9.
What is ONE advantage of a Corporation?
a)
Difficult to start
b)
Make all of the decisions
c)
Easy to raise money!
10.
Disadvantages include limited life and
the potential for conflict between partners
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
11.
Characteristics include owned by two or more people and may be general or limited
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
12.
Which of the following is NOT a business organization?
a)
Sole Proprietorship
b)
Corporation
c)
Perfect Competition
d)
Partnership
13.
What is a disadvantage of partnerships?
a)
ease of formation
b)
owners share responsibilities
c)
limited liability
d)
possibility of personality conflict
14.
Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?
a)
corporation
b)
partnership
c)
sole proprietorship
15.

Sole trader businesses are owned and managed by..

a)

2-20 people

b)

Multiple owners

c)

1 person

d)

Partners

16.

Which of the following are advantages of a Public limited company

a)

There is no restriction on the buying and selling or transfers of shares.

b)

There is large opportunity to raise very large capital sum in the business.

c)

All shareholders have limited liability.

d)

Not a seperate legal entity

17.

Which of the following businesses is likely to have the most amount of capital

a)

Partnership

b)

Sole Trader

c)

Public limited

18.

Which of the following are advantages of Private Limited Companies

a)

Unlimited Liability

b)

Seperate legal entity

c)

The company cannot offer shares to the general public

d)

Legal formalities to start up

19.

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

a)

Partnership

b)

Sole Proprietorship

c)

Franchise

d)

Private limited company

20.

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.

a)

Sole Proprietorship

b)

Franchise

c)

Partnership

d)

Private Limited Company

21.

Partners who are only responsible up to the extent of their investment

a)

Limited Partnership

b)

Franchisee

c)

Sole Proprietor

22.

Which of the following is an advantage of a partnership?

a)

Which of the following is an advantage of a partnership?

b)

partnerships can usually attract financial capital more easily than proprietorships.

c)

management is hard between two or more people

d)

They are inefficient.

23.

Sole trader businesses are owned and managed by..

a)

2-20 people

b)

Multiple owners

c)

1 person

d)

Partners

24.

Which of the following businesses is likely to have the most amount of capital

a)

Partnership

b)

Sole Trader

c)

Public limited

25.

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

a)

Partnership

b)

Sole Proprietorship

c)

Franchise

d)

Private limited company

26.

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.

a)

Sole Proprietorship

b)

Franchise

c)

Partnership

d)

Private Limited Company

27.

Which of the following is an advantage of a partnership?

a)

Which of the following is an advantage of a partnership?

b)

partnerships can usually attract financial capital more easily than proprietorships.

c)

management is hard between two or more people

d)

They are inefficient.

28.

This type of business is owned by many people called shareholders.

a)

Sole Proprietorship

b)

Partnership

c)

Limited Companies

d)

Franchise

29.

This type of business is a contractual agreement with a parent company to sell its products/services in another area.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

30.
Law firms and doctor's offices are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
31.

Nike, Google and Apple are examples of.....

a)

Sole Proprietorships

b)

Partnerships

c)

Limited Companies

d)

Franchises

32.

Disadvantages of this type of business include: company is taxed on profits, regulated by the government, and hard to start.

a)

Sole Proprietorship

b)

Partnership

c)

Limited Companies

d)

Franchise

33.
Advantages of this type of business include: easy to start, and you can rely on a good company name and expertise.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
34.

A partnership has ______________ personal liability

a)

unlimited

b)

limited

35.

Which of the following is NOT a feature of a private sector company?

a)

Shares can be issued to raise capital

b)

Shares can be bought and sold on the Stock Exchange

c)

All owners of the business have limited liability

d)

The business continues after the death of shareholder

36.

Which of the following statements best applies to a public limited company (plc)?

a)

It is owned by the government and is in the public sector

b)

It is owned by shareholders who can sell their shares in the Stock Exchange

c)

It is quick and easy to set up with few legal formalities

d)

Its accounts can be kept private and it receives little coverage in the business press

37.

The main reason why the owners of many private limited companies convert their businesses into public limited companies is because:

a)

they do not want to remain in the private sector

b)

they want to gain the benefits of limited liability

c)

they want to keep the annual accounts secret

d)

they want to raise additional capital to expand the business

38.

Plumbers, decorators, window cleaners, and hairdressers are examples of sole tradership.

a)

TRUE

b)

FALSE

39.

There is no separate legal entity between the owner and the business.

a)

TRUE

b)

FALSE

40.

Sole traders are most suitable for large scale concerns like GOOGLE.

a)

TRUE

b)

FALSE

41.

Sole trader is a business owned by a president.

a)

TRUE

b)

FALSE

42.

The group responsible for carrying out the day-to-day running of a limited liability company is known as the Board of Directors.

a)

TRUE

b)

FALSE

43.

The provision of goods and services that are not provided by private businesses is a major objective of the public sector.

a)

TRUE

b)

FALSE

44.

The first time the shares of a public limited company are offered for sale on a stock exchange is called an Initial Public Offering (IPO).

a)

TRUE

b)

FALSE

45.

Publicly held companies are owned by family members of the same family business.

a)

TRUE

b)

FALSE

46.

Privately held companies can advertise their sales on the Bahrain Bourse website.

a)

TRUE

b)

FALSE

47.

To change the structure from any form to a privately held company, the former should.

a)

Have its accounts checked by an internal auditor.

b)

Have its accounts checked by a dependent auditor.

c)

Have its accounts checked by an accountant

d)

Have its accounts checked by an independent auditor.

48.

Raising finance through the sale of shares is applicable to which form of business.

a)

Sole trader

b)

Partnership

c)

Publicly held company

d)

Cooperative

49.

Why does a business entity majorly change its form to a limited company?

a)

To gain fame

b)

To expand its operations

c)

To gain equity

d)

To gain customers

50.

Privacy is maintained in which form of ownership.

a)

Sole trader

b)

Partnership

c)

Publicly held company

d)

Cooperative

51.

Cooperatives fall under:

a)

Non-profit public enterprise

b)

For-profit public enterprise

c)

Non-profit social enterprise

d)

For-profit social enterprise

52.

These cooperatives occur when a group of independent retailers join together, operate under one brand name.

a)

Employee cooperatives

b)

Community cooperatives

c)

Retail cooperatives

53.

_______________ will aim to earn a surplus/ profit but this is to use to reinvest to support society rather than being paid to owners.

a)

For-profit social enterprises 

b)

Non-profit social enterprises

54.

UNICEF, Bahrain’- is an example of:

a)

Cooperatives

b)

NGOs

c)

Charities

55.

‘Muharraq consumer ________________ society’.

a)

NGO

b)

Charity

c)

Cooperative