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WorksheetsUnit 3: Types of Business Organisations
Total questions: 20
Worksheet time: 10mins
What is another term for a sole proprietor?
Company owner
Sole trader
Partnership leader
Corporation executive
Who typically assists a sole trader in his business operations?
Shareholders
Board of Directors
Family members and employees
Government authorities
What is the sole trader solely responsible for in his business?
Market competition
Profit and loss
Tax regulations.
Employee salaries
What liability does a sole trader assume in his business?
Limited liability
Shared liability
Unlimited liability
No liability
What is a potential consequence for a sole trader in case of business failure?
Government fines
Limited loss
Employee layoffs
Losing personal assets
What is the advantage of sole proprietorship mentioned in the passage?
Complex setup
High registration cost
Simple setup
No registration required.
What usually drives the sole trader to succeed?
External motivations
Financial incentives
Passion for success
Government regulations
How is sole proprietorship generally taxed in most countries?
Higher personal income tax
No taxation
Same as bigger companies
Lower personal income tax
How many people typically own a partnership business?
Less than 5
20 or more
Exactly 20
2 or more but less than 20
What is an example of a partnership business?
Supermarkets
Manufacturing companies
Law firms
Technology startups
In an ordinary partnership, what type of liability do the partners assume?
Limited liability
No liability
Shared liability
Unlimited liability
In a limited partnership, what is the extent of the partner's liability?
A) Unlimited liability
Limited to capital invested
No liability
Shared liability
What is a requirement for a limited partnership?
Registration with the Registrar of companies
Government approval
No registration required.
Public disclosure
What is a key advantage of the partnership business model regarding its setup?
Complex and formal
Easy and simple
Requires extensive documentation
No setup required
How does the availability of capital benefit a partnership business?
Decreases profitability
Facilitates business expansion
Limits business growth
No impact on expansion
What advantage does expertise bring to a partnership business?
Reduces profitability
Limits business contacts
Increases business efficiency
Slows down business operations
Why is team effort essential in a partnership business?
Reduces efficiency
Hinders business growth
Increases business efficiency
No impact on business operations
What does limited liability mean for the partners in a partnership business?
No impact on personal assets
Unlimited liability
Risk of losing personal possessions
Shared liability
What happens if a partner dies in a partnership business?
A) Business dissolution
B) Continuity ensured
C) Partners lose interest
D) No impact on business operations
Answer: B) Continuity ensured
Question 7: How are partners in a partnership typically taxed compared to companies in most countries?
A) Higher personal income tax
B) Same as company tax
C) No taxation
D) Lower personal income tax
Answer: D) Lower personal income tax
Continuity ensured
Business dissolution
Partners lose interest
No impact on business operations
How are partners in a partnership typically taxed compared to companies in most countries?
Lower personal income tax
Higher personal income tax
Same as company tax
No taxation
