Font size
WorksheetsMr Frayne Y11 Legal Structures
Total questions: 20
Worksheet time: 14mins
A business entity with one owner is called a (a) trader.
The sole trader faces (a) liability, which means the owner can be forced to sell his or her personal assets to pay for the debts of the business.
Partnerships normally consist of between two and (a) partners.
Partnerships have unlimited (a) .
-Two or more owners
-Lower taxes
-Unlimited Liability
Partnership
Sole Proprietorship
Corporation
All of the above
_______________is a legal term for being held accountable
Liability
Assets
Bankruptcy
Claim
One of the advantages of a sole trader business is that
owners have limited liability
decisions and responsibilities can be shared
shares can be sold to raise capital
the owner has complete control over decision making
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 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
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
More ideas generated
The two forms of business ownership with unlimited liability are:
Sole trader
Public company
Partnership
Private company
Sole Traders have
Unlimited Liability
Limited Liability
Private Limited Companies have
Limited Liability
Unlimited Liability
A sole trader gets to keep any profits made for themselves
True
False
How many People can be in a Partnership?
Unlimited
2 only
Between 2 & 20
Between 2 & 10
Which of the following 3 are Private Limited Companies?
Colin Logan Building Contractors LTD
Islay Hospital
Aitchison LTD
Mactaggart Leisure Centre
B. Mundell LTD
What type of liability does a partnership have? Is this good or bad?
Limited liability - good
Limited liability - bad
unlimited liability - good
unlimited liability - bad
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
