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WorksheetsS3 BM Types of Organisation (PC 2 Revision)
Total questions: 66
Worksheet time: 33mins
Who typically owns private sector organisations?
Government agencies
Private individuals
Non-profit organisations
Public corporations
How are private sector organisations usually controlled?
By government officials
By a board of directors or the owners
By public votes
By the partners
How are private sector organisations primarily funded?
Through government grants
Through personal investment, loans, and profits
Through donations
Through taxes
What is a sole trader?
A business owned by multiple people
A business owned and controlled by one person
A large corporation
A government entity
What type of liability do sole traders have?
Limited liability
No liability
Unlimited liability
Shared liability
Which of the following is a common example of a sole trader?
A multinational company
A window cleaner
A public school
A non-profit organisation
Who makes the decisions in a sole trader business?
A board of directors
The government
The owner
The employees
What is one advantage of setting up a sole trader business?
It requires complicated legal documents.
Decisions must be discussed with partners.
The owner keeps all profits.
It is difficult to set up.
Why can decisions be made quickly in a sole trader business?
The owner must consult with a board.
The owner does not have to discuss or compromise.
Legal documents are required.
Profits are shared among partners.
Which of the following is NOT an advantage of a sole trader?
Easy to set up.
Owner keeps all profits.
Requires complicated legal documents.
Quick decision-making.
What is one disadvantage of being a sole trader?
Access to unlimited resources
Ability to easily take time off
No one to consult or share ideas with
Limited liability
Why might a sole trader find it difficult to take time off?
They have unlimited liability
They have no one to cover for them
They have too many employees
They have too much free time
What type of liability does a sole trader have?
Limited liability
Joint liability
Unlimited liability
No liability
What is the range of owners in a partnership?
1 to 10
2 to 20
5 to 25
10 to 30
In which professional practices are partnerships commonly found?
Retail and manufacturing
Solicitors, accountants, and dentists
Construction and engineering
Hospitality and tourism
What is created and agreed upon by all partners when setting up a partnership?
Business plan
Partnership agreement
Marketing strategy
Financial report
What is one of the key elements outlined in a partnership agreement?
The color of the office walls
The salary for each partner
The type of coffee served
The brand of office furniture
Which aspect of a business is determined by a partnership agreement?
The location of the business
How the profits will be split between partners
The type of business cards used
The design of the company logo
What does a partnership agreement specify about capital?
How much capital each partner has agreed to put into the business
The color of the capital
The location of the capital
The type of capital used
What roles are defined in a partnership agreement?
The roles of the cleaning staff
The key roles and responsibilities of each partner
The roles of the marketing team
The roles of the IT department
Which of the following is an advantage of a partnership?
Partners have limited liability.
Different partners can bring different skills and experience to the business.
Decision-making is solely the responsibility of one partner.
Partnerships do not require any legal agreements.
How can workload and decision-making be managed in a partnership?
They are managed by a single partner.
They are shared between partners.
They are outsourced to a third party.
They are not managed at all.
Compared to a sole trader, what financial advantage does a partnership have?
Partnerships have lower taxes.
Larger amounts of finance can be raised.
Partnerships have fewer regulations.
Sole traders can raise more finance.
What is one disadvantage of a partnership related to decision-making?
Partners have limited liability.
Disagreements and arguments can occur when partners don't agree on a decision.
Partners do not share profits.
Partnerships are easy to dissolve.
What must partners do with profits in a partnership?
Keep all profits individually.
Share profits between partners.
Donate profits to charity.
Reinvest all profits into the business.
What type of liability do partners have in a partnership?
Limited liability
No liability
Unlimited liability
Partial liability
What is the ownership of a private limited company divided into?
Bonds
Shares
Debentures
Loans
What does each share represent in a private limited company?
A large percentage ownership of the business
A small percentage ownership of the business
A fixed interest rate
A loan to the company
Who are the owners of a private limited company?
Directors
Employees
Shareholders
Managers
What happens when someone owns more shares in a private limited company?
They have less percentage ownership
They have more percentage ownership
They receive a fixed salary
They become a director
What is required for an individual to become a shareholder of a private limited company?
They must be formally invited to buy shares.
They can buy shares freely on the stock market.
They must be a family member of the owner.
They need to have a business degree.
What is one advantage of a private limited company controlling who becomes a shareholder?
It increases the number of shareholders.
It reduces the risk of control being lost to outsiders.
It allows for public trading of shares.
It guarantees higher profits.
What does limited liability mean for a private limited company?
Shareholders are responsible for all debts.
The business is a separate legal entity from its shareholders.
Shareholders can lose more than their investment.
The company cannot be sued.
What is the financial risk for shareholders in a private limited company if the business fails?
They lose their personal assets.
They are responsible for all company debts.
They only risk losing the capital they invested.
They must pay a penalty fee.
Who controls a private limited company?
The government
A board of directors
The employees
The customers
How are the profits of a private limited company divided?
Equally among all employees
Through a process known as dividends
Given entirely to the CEO
Donated to charity
What indicates that a company is a private limited company?
The word "Corporation" in its name
The letters "LTD" at the end of its name
A logo with a lock
A special government seal
What is the relationship between shares and profits in a private limited company?
More shares mean less profit
More shares mean more profit
Shares do not affect profit
Shares are unrelated to profit
What is one advantage of a private limited company regarding capital?
It can only raise capital through loans.
It can quickly raise a large amount of capital by selling shares.
It cannot raise capital through share issues.
It relies solely on government funding.
How does a private limited company maintain control?
By allowing outsiders to buy shares.
By keeping control within the company and not losing it to outsiders.
By selling all shares to the public.
By having no shareholders.
What type of liability do shareholders of a private limited company have?
Unlimited liability.
No liability.
Limited liability.
Joint liability.
What is one disadvantage of setting up a private limited company?
It is a quick and simple process.
It is a lengthy and legally complicated process.
It requires no legal documentation.
It is cheaper than other business types.
What must be done with the annual accounts of a private limited company?
They must be kept confidential.
They must be produced and shared publicly.
They must be destroyed after a year.
They must be shared only with employees.
How are profits handled in a private limited company?
Profits are kept by the company owner.
Profits are shared between shareholders.
Profits are donated to charity.
Profits are reinvested automatically.
Which of the following is true about public sector organisations?
They are privately owned.
They are controlled by private investors.
They are primarily funded through taxation.
They are funded by donations.
Who controls public sector organisations?
Private shareholders
Elected officials such as MSPs and councillors
Business executives
Non-governmental organisations
Public sector organisations are owned by which entity?
Private corporations
The government
International bodies
Individual entrepreneurs
How many local authorities is Scotland divided into?
25
32
40
50
What is the tax collected by local authorities in Scotland called?
Income Tax
Property Tax
Council Tax
Service Tax
Which of the following is true about third sector organisations?
They are owned by a single individual.
They are controlled by a board of trustees.
They are funded by selling products.
They are part of the government sector.
How are third sector organisations usually funded?
Through government grants.
By selling shares.
Through donations and fundraising activities.
By charging membership fees.
What is the primary purpose of a charity?
To make a profit
To help a particular cause
To compete with businesses
To provide loans
Which of the following is an example of a charity?
British Heart Foundation
Microsoft
Amazon
How do charities typically raise money?
By selling products
Through donations and fundraising activities
By charging high fees
By investing in stocks
What must an organisation do to operate as a charity in the UK?
Register with the Charity Commission
Obtain a business license
Register with the local council
Obtain a patent
An aim of a charity:
To increase profits
To relieve poverty
To promote individual wealth
To advance technology
What is one of the purposes that a charity must prove to meet according to the Charity Commission?
To advance education
To support political campaigns
To enhance personal gain
To develop new products
Which activity is NOT listed as a criterion for a charity by the Charity Commission?
To advance religion
To carry out activities beneficial to society
To promote sports
To relieve poverty
What is the primary purpose of voluntary and community groups?
To make a profit
To provide a service to people in a certain area
To compete with other groups
To sell products
Who typically runs voluntary groups like youth clubs and sports teams?
Paid employees
Government officials
Volunteers
Business owners
Why might voluntary groups charge a small fee to members?
To make a profit
To cover the costs of running the group
To pay volunteers
To invest in stocks
What is one way voluntary groups raise additional money?
Selling products online
Bag packing in supermarkets
Hosting expensive events
Charging high membership fees
Is Primark a Social Enterprise?
Yes
No
Do Social Enterprises aim to make as much profit as they can?
Yes
No
Which of these is NOT a social enterprise
The Eden Project
Cancer Research UK
Fifteen
The Big Issue
If a business reinvests their profits into a social/environmental cause, does this make them a Social Enterprise?
Yes
No
