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WorksheetsForms of Business Ownership Quiz
Total questions: 14
Worksheet time: 7mins
What is a characteristic of a sole proprietor business?
Unlimited liability
Jointly liable for legal/financial/ethical problems
Requires three or more directors
The company name ends in (PTY) Ltd.
What is a disadvantage of a private company?
Easy to raise funds for growth through the sale of shares
The name ends with Ltd.
The company and its owners (shareholders) are separate entities
If the company fails to attract financially strong shareholders, it may hamper its growth opportunities
What is a characteristic of a public company?
Requires three or more directors and one or more shareholders
The company name ends in (PTY) Ltd.
A sole trader is a business that is owned and managed by one person
The partnership does not pay income tax, only the partners in their personal capacities
What is an advantage of a sole proprietor business?
The business has its own legal identity
The company and its owners (shareholders) are separate entities
The partnership does not pay income tax, only the partners in their personal capacities
Can make quick decisions without having to consult others
What is a disadvantage of a partnership business?
The partnership does not pay income tax, only the partners in their personal capacities
Can obtain tax rebates if they are involved in SCI projects
Decision making can be time consuming as all partners have to be in agreement
The company and its owners (shareholders) are separate entities
It is the process of running a business in order to make a profit.
ENTREPRENEURSHIP
ENTREPRENEUR
BUSINESSMAN
EMPLOYEE
Which of the following best describes a person who founds and runs a small business, assuming all the risks and rewards of the venture?
ENTREPRENEUR
EMPLOYEE
COMPANY
ENTREPRENEURSHIP
This is a form of business ownership where two or more people act as co-owners.
PARTNER
PARTNERSHIP
BUSINESS PARTNER
COMPANY
Advantage: Start-up cost are low
Sole Proprietorship
Partnership
Franchising
Entrepreneurship
Two heads are better than one
Advantage: Sole Proprietorship
Disadvantage: Partnership
Advantage: Partnership
Disadvantage: Sole Proprietorship
What are 2 advantages of being a sole trader?
The owner has to share with his children
It is easy to set up
Owner is entitled to all the profits
There is continuity
Sole trader has (a) owner.
