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WorksheetsChapter 1
Total questions: 71
Worksheet time: 36mins
The function of business that controls and makes decisions about a business.
Sole proprietor
Management
Partnership
Nonprofit corporation
The relationship between two or more people who join and create a business
Partnership
Sole proprietorship
Corporation
Nonprofit corporation
A legal process that allows a company to reorganize or go out of business when it runs out of funding.
Monopoly
Bankruptcy
False advertising
Manufacturing
All activities involved in developing and exchanging goods and services
Business
Money
Corporation
Producer
An organization that exists to serve some public purpose.
Partnership
Corporation
Sole Proprietorship
Nonprofit organization
A business owned by one person (70% of all businesses in the UK)
Partnership
Corporation
Sole Proprietorship
Nonprofit organization
Business that is legally separate from its owners and has most of the legal rights of an actual person.
Partnership
Corporation
Sole Proprietorship
Nonprofit organization
Type of producer that uses raw materials from other producers and converts them into finished goods.
Bankruptcy
Telemarketing
False advertising
Manufacturer
An institution that exists to serve a purpose is a _____________ _____________.
business entity
service business
merchandise business
A business entity could exist for a cause or for profit.
true
false
This type of business produces (makes) a product.
merchandise business
service business
manufacturing business
extracting business
This type of business produces sells an existing product.
merchandise business
service business
manufacturing business
extracting business
This type of business produces sells a service.
merchandise business
service business
manufacturing business
extracting business
This type of business produces sells natural resource it takes from the earth.
merchandise business
service business
manufacturing business
extracting business
Sole proprietorship business owner has?
Restricted Liability
No Liability
Unlimited Liability
Limited Liability
Which business ownership type is owned by members?
LLC
Co-operative
Corporation
Sole Proprietor
Partnership
Which of the following type of business is owned and operated by one person who assumes all risk and reward?
Sole proprietor
Cooperative
Partnership
Corporation
LLC
Limited Liability means?
The owners assume all risk and reward
Risk is limited to investment. Shareholders cannot be asked to pay for the company debts.
Which type of business ownership is operated by board of directors and owned by stockholders?
LLC
Co-operative
Corporation
Sole Proprietor
Partnership
Un-limited Liability means?
The owners assume all risk and reward and will have to pay for the company debts.
Risk is limited to investment. Shareholders cannot be asked to pay for the company debts.
Which of the following type of business is owned and operated by two or more partners who assumes all risk and reward?
Sole proprietor
Cooperative
Partnership
Corporation
LLC
What type(s) of businesses have limited liability
Private limited company
Partnership
Solo trader
Public limited company
what is one benifit of being a sole trader
Having to work long hours
Not having to share profits
Having more than one point of view
Being able to decide specific shareholders which will most benifit the company
One disadvantage of a sole trader business is that
capital is limited to the owner's savings and bank loans.
decisions take too long to make.
owners may disagree.
the start up of the business involves a lot of paperwork.
One of the advantages of a sole trade is that
owners have limited liability.
shares can be sold to raise capital.
decisions and responsibilities can be shared.
the owner has control over decision-making.
The best definition of a sole trader is that it is a business that
only employs one person.
is owned by one person.
has a single customer.
is a single firm in the industry.
One feature of the sole trader type of business is
it is inexpensive to become a sole trader.
there are a lot of legal requirements and paperwork.
the owner is the only one working in the business from day to day.
the owner has limited liability.
The term 'unlimited liability' means that the owners of the business cannot lose their personal assets.
True
False
The sole trader type of business is usually financed by the owner.
True
False
It is easy for a sole trader to raise capital for his/her business from the bank.
True
False
The meaning of 'unlimited liability' is that
unlimited resources may be used.
unlimited payment is to be done.
personal property of the owner will be used to pay the debts of the business.
unlimited time for the business.
In a General Partnership, the liability of partners is unlimited.
True
False
In the limited partnership business, the partners can lose the amount of money they invested but they will not lose their personal resources.
True
False
One feature of the partnership type of business is that
there is shorter time for decision making.
each partner has to share in the loss or consequences caused by one partner.
each partner has limited liability.
partners share profits, however losses are not shared.
The maximum number of persons who are legally allowed to operate a partnership is
2
20
there is no legal limit.
100
Disadvantages of this business type: share the profit, possible disagreements, contract is needed, share unlimited liability.
This business type is a
franchise
sole proprietorship
partnership
corporation
Sole Proprietorship is most suitable for
medium size businesses
large scale businesses
small size businesses
none of the above.
The life of a sole trader/sole proprietorship business is
stable
very short life
unstable
long life
A sole proprietor business is free from regulation from
UK Contract Act
Government
HMRC
UK Law
What is the most important document used in a partnership business?
Partnership Contract
Agreement
Partnership Deed
Partnership Act
Which of the following statements is NOT true?
Sole proprietorships are not permitted to take on employees.
Sole proprietors are personally liable for the debts and liabilities of the business.
The Sole Proprietor owns all the assets of the business and is entitled to all of the profits that the business generates.
Sole Proprietors are self-employed.
How are sole proprietorships and partnerships alike?
Contracts are needed to start the business.
Owners have complete control of the business.
Owners have limited, legal liability.
The businesses are owned by one person.
A business owner who prefers to maintain complete control of all business activities might consider structuring the business as a
sole proprietorship
general partnership
Franchise
Corporation
The easiest form of business to start and end is
limited liability partnership
corporation
franchise
proprietorship
The owner's financial liability is not limited to investments in the business.
Limited liability
Unlimited liability
Limited liability company
Liability partnership
What type of business ownership is depicted in the picture?
Limited company
Partnership
Sole trader
Sole proprietor
The following are true about partnership EXCEPT:
The business will come to an end if something happens to one of the partners.
Better decision making.
Partners specialize in the activities of the business.
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
The membership of a partnership
can range from one to twenty persons
can range from two to twenty persons
can be a minimum of seven persons
must not exceed two person
Which of the following characteristics of the sole trader is not an advantage to him?
having a close relationship with customers.
unlimited liability
getting all the profits
low cost to operate the business
One of the disadvantages of having a partnership is .
double taxations
high startup costs
tax on dividends
unlimited liability
A major advantage for having a corporate is having _____________ liability
unlimited
restricted
limited
unrestricted
An organization that is owned and operated by its members is a_________________________
Corporation
Cooperative
Franchize
Non for profit organization
Nonprofit organizations
focus on providing services rather than making a profit.
outnumber sole proprietorships in the United States.
must still pay taxes.
do not register with the government.
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 the sector consisting of businesses owned by private groups or individuals known as?
Secondary sector
Public sector
Private sector
Voluntary sector
Which sector comprises organizations accountable to and controlled by central or local government (the state)?
(a)
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)
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)
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 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)
What is the name for an individual who owns a share of a corporation and is entitled to part of its profits?
stockholder
president
officer
director
What percentage of the profits in sole proprietorship is the owner designated to?
75%
100%
54%
0%
A group of people who jointly oversee the activities of a corporation
Employees
Board of Directors
Volunteers
None of the above
A corporation can continue to exist after the death of its owners
True
False
What type of business sells stocks and bonds
Sole owner
Partnership
Corporation
Schools
A sole proprietor business would have unlimited life?
True
False
They want to make a profit on the money they have invested in the business.
customers
managers
government
owners / shareholders
