WorksheetsBusiness Structure Quiz
Total questions: 15
Worksheet time: 8mins
What is the primary characteristic of a sole trader?
Owned by multiple people
Limited liability
Owned and run by one individual
Shares traded on the stock market
What is a franchise?
A type of public limited company.
A business model where a franchiser allows another business to trade under its name.
A company with limited liability.
A type of private limited company.
What is one advantage of being a sole trader?
Unlimited liability
Harder to raise money
Own boss and flexible decisions
High start-up costs
What does "unlimited liability" mean?
Limited responsibility for debts
No need to pay debts
Owner must pay all debts, even with personal assets
Business is protected from debts
Which type of business is typically easiest to start?
Corporation
Partnership
Sole Trader
Cooperative
What is a key advantage of a partnership?
Sole responsibility for decisions
More capital can be raised
Unlimited liability
Profits are not shared
In a partnership, how are profits typically shared?
Equally among partners
Based on the amount of capital each partner invested
According to the partnership agreement
None of the above
What is a disadvantage of being a sole trader?
Easy to set up
Unlimited liability
Keep all the profits
No need to employ staff
What is a disadvantage of a partnership?
Shared responsibility
Access to more skills
Business partners might argue
Easier to close down
What is a characteristic of a private limited company (Ltd)?
Shares are publicly traded
Often small and family-run
Unlimited liability
No shareholders
What is one advantage of a private limited company (Ltd)?
The shareholders have limited responsibility for the debts of the business.
The company is easy to set up with few legal formalities.
Employees are always committed to the business.
The value of shares can go up.
What is a disadvantage of a public limited company (PLC)?
More access to finance.
The value of shares can go up.
Loss of individual control.
Easier to raise funds.
What is a key disadvantage of a private limited company?
Control of the company becomes more spread as the structure grows.
The value of shares can go up.
More access to finance.
The shareholders have limited responsibility for debts.
What is one benefit of a public limited company?
The value of shares can go down.
Annual reports have to be published by law.
More shares in the company can be sold to the public to raise money.
There is a threat of being taken over by competitor companies.
What is the main advantage of a partnership over a sole trader?
Easier to manage
More capital available
Limited liability
Less regulatory requirements
