WorksheetsBusiness organization (exit quiz)
Total questions: 28
Worksheet time: 15mins
This type of business is owned by two or more people.
Sole Proprietorship
Partnership
Corporation
Franchise
A business with one owner is known as a:
Company
Sole trader
Partnership
The two forms of business ownership with unlimited liability are:
Sole trader
Public company
Partnership
Private company
Advantages of a sole trader are:
Limited liability
The owner makes all the decisions
The owner takes all the profit
Can raise substantial capital
Advantages of a partnership are:
The partners split the profit
Unlimited liability
Raise more capital than a sole trader
Share the workload
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 potential for conflict between partners
What term is defined as an enterprise that produces goods or services, usually to make a profit?
business organization
unlimited liability
stock
vertical merger
How many persons can form a partnership?
1
2-30
up to 25
2-20
A sole proprietor may enjoy all of the following except____
All Profits
Unlimited Liability
Small start up cost
Quick decision making
Which of the following information is NOT included in the partnership deed?
The names of partners
The location of the business
The number of family members each partner has.
Th duration of the partnership
Identify 2 Disadvantages of a partnership form of business
Conflict may arise among partners
Some partners may be left out of the profit sharing.
Some partners may be unfairly burdened within the partnership
There is continuity if one partner dies
Unlimited liability means
the business is closed down because of too much debt
the owners' personal possessions can be used to cover the firm's debts
the bank will refuse to give loans to the business
the business will struggle to attract investors
What are 3 of the benefits of being a sole trader?
Easy to establish
Keep all the profit
Get to make all the decisions
Unlimited liability
What is a Cooperative?
A person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit seeking enterprise or concern.
A form of business organization that is owned and run jointly by its members, who share the profits or benefits.
A form of business organization in which the owners have shares in a separate legal entity that itself can own assets and borrow money.
A form of business organization similar to a partnership but offering its owners the advantage of limited financial liability.
Which partner doesnot contribute capital but still has unlimited liability?
Secret
Nominal
Active
Sleeping
Who , as a partner has unlimited liability?
Active and Secret partners
Nominal Partners and sleeping partners
All of the above
Only a option
To start a partnership business, what should be the minimum number of partners?
2
10
4
20
In partnership, partners liabilities are
Unlimited
Limited to the capital of the business
Limited
Both A and C
(a) partner only lends his name and reputation for the benefit of the firm.
The sleeping partner is also known as (a) Partner.
A Public Limited Liability Company is owned by a minimum of ____ shareholders
2
10
7
50
Which of the following can sell shares on the stock exchange?
partnership
sole proprietorship
cooperative society
public limited liability company
___ is a written agreement which governs the affairs of the partners
partnership deal
partnership deed
partnership agreement
partnership disclaimer
