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WorksheetsS2 BDL - Sole Trader/Functional Areas Assessment Revision
Total questions: 43
Worksheet time: 30mins
A (a) is a business that is owned and run by one person. There is only one owner, but they may have employees who work for them. Sole traders are usually start-ups or small businesses. For example, photographers, electricians, (b) , graphic designers, social media influencers, bloggers, small online clothing brand owners and beauty therapists may set up as sole traders.
Sole traders have (c) and the owner is personally responsible for the (d) of the business. A sole trader pays income (e) on their earnings.
A sole trader has to share the profits made by the business. True or False?
True
False
Select TWO true statements that relate to a sole trader.
Sole traders have limited liability
Sole traders get to make all their own decisions about the business
Sole traders may find it harder to raise funds for the business
Sole traders usually get more holidays than partners or directors
Unlimited Liability is
The owner has to pay off all the debts of the business. To the extent that their private assets may be sold to cover the businesses debts.
When a company's shareholders have to pay only their share value to meet debts incurred by the company.
What are 3 of the benefits of being a sole trader?
Easy to establish
Keep all the profit
Get to make all the decisions
Unlimited liability
Define the term 'sole trader'.
What is a key advantage of being a sole trader?
Limited liability
Shared responsibility
Access to more capital
Complete control over business decisions
Which of the following is true about sole traders?
They must have at least two partners.
They are exempt from paying taxes.
They are required to publish their financial accounts.
They have unlimited liability.
In a sole trader, who is responsible for the debts of the business?
The government
The sole trader
The customers
The employees
What is a common challenge faced by sole traders?
Excessive government support
Limited access to financial resources
Difficulty in decision making
Access to unlimited capital
Which of the following is a common challenge faced by sole traders?
Low responsibility
Long work hours
High employee turnover
Easy access to capital
Which of the following is NOT an advantage of being a sole trader?
Being your own boss
Making all business decisions
High set-up costs
A lot of control over the business
Select the true statement about sole traders.
They are run by and employ one person.
Most small businesses are sole traders.
All sole traders are public companies.
Most charities are sole traders.
You CANNOT employ staff to work for you as a sole trader.
True
False
Businesses often split their work into different (a) or functional areas. Each of these (b) areas will have specific tasks to complete. The main functional areas are:
marketing
human resources
(c)
finance
Human Resources
Organise these options into the right categories
advertising
market research
promotion
selling products
recruitment and selection
staff training
health and safety
production of goods or services
buyingraw materials
control of quality
raising finance
preparing budgets
preparing final accounts
How do functional areas work together?
Set budgets for marketing - eg, how much can be spend on advertising.
Finance
Recruit and select appropriate staff to work in the other functional areas.
HR
Carry out market research to find out what product needs to be made.
Marketing
Create the product so it can be sold to customers.
Operations
Which department is responsible for recruiting new employees?
Operations
Marketing
Finance
Human Resources
Which department is typically in charge of setting the company's budget?
Operations
Finance
Human Resources
Marketing
As a company, you are coming out with a new product and need to get the information out to the public. Of the four functional areas, who will be tasked to carry out that function?
Marketing
Operations
Administration
Accounting
Your job is to ensure that the product meets the needs and wants of the customer. What is your functional area?
Marketing
Accounting
Administration
Operations
It is responsible for the management of money in a business.
Marketing
Human resources
IT
Finance
It is responsible for the hiring, training and management of the people who work for the business.
marketing
human resources
IT
Finance
It is responsible for promoting and selling products and services which satisfy customer needs and wants
Human Resources
Marketing
IT
Finance
