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WorksheetsEdexcel Business Types Quiz
Total questions: 23
Worksheet time: 12mins
What is the main advantage of a sole trader?
Unlimited Liability
Shared control
Limited liability
Full control and all profits
What is the main disadvantage for a sole trader?
Separate legal entity
Limited liability
Easy to raise capital
Unlimited liability
What are the advantages of a partnership?
Limited resources
Unlimited Liability
Shared responsibility, decision-making, wider pool of skills
Limited liability, sole decision-making, narrow pool of skills
What are the disadvantages of a partnership?
Individual decision making
Shared decision making, potential for disagreements
Limited Liability
Unable to access external finance
What is the main difference between a PLC and an LTD?
Size and number of employees
Ownership and ability to sell shares to the public
Type of products sold
Location and office space
What is a characteristic of a PLC?
Can be set up easily
Unlimited Liability
It is a separate legal entity to the owner
Limited succession and difficulty in transfer of ownership
What is the main advantage of a PLC?
Unlimited liability
Difficulty in raising capital
Can sell shares to the public
Limited resources
What is a characteristic of a partnership?
Unlimited liability for the partners
Can sell shares to the public
Separate entity from the owners
Hard to transfer ownership
What is the main disadvantage of a PLC?
Easy to set up
Unlimited liability
Difficulty in raising capital
Complexity and cost of formation
Who owns an LTD company?
Public Shareholders
Private Shareholders
One person
2-20 people
Who has unlimited liability?
Stakeholder
Sole Trader
Partnership
Public Limited Company
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
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which of the following is a drawback for an entrepreneur setting up a business as a sole trader?
Profit is shared
Financial accounts are kept private
Limited liability
Unlimited liability
Which of the following is an advantage of operating a large established business as a public limited company?
Shares can be sold to the public to raise additional finance
Financial accounts are published
Shares can only be sold to invited investors to raise finance
Owners have unlimited liability
A private limited company may change into a public limited company because it wants:
Limited liability
To raise additional finance
Unlimited liability
To avoid takeover
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole trader
Partnership
LTD
PLC
