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WorksheetsSources of Finance Quiz
Total questions: 14
Worksheet time: 7mins
What is one disadvantage of a sole trader?
Unlimited liability
Limited liability
Shared decision-making
High start-up costs
What is a common requirement for starting a franchise?
Paying an initial franchise fee
No need for any investment
Complete independence from the franchisor
No need to follow any guidelines
What is one type of business ownership mentioned in the document?
Partnership
Cooperative
Public limited company
Joint venture
Which type of business ownership is characterized by having limited liability?
Sole trader
Partnership
Private limited company
Cooperative
Which type of business ownership involves two or more people sharing responsibilities?
Sole trader
Partnership
Private limited company
Corporation
What is unlimited liability?
A situation where the business and owner are legally separate
A situation where the owner is not liable for business debts
A situation where the business and owner are not legally separate
A situation where the business has limited liability
What is one potential advantage of starting a business as a partnership?
Limited liability
Shared responsibilities
Higher taxes
More regulations
Why might owners of a private limited company not be involved in running the business?
They are always involved
They prefer to work in partnerships
They may hire managers to run the business
They lack interest in business operations
What is one of the key benefits of a franchise?
Access to an established business model
Freedom to create a new brand
No need for initial investment
Complete independence from the brand
What is required to operate a franchise?
Buying the rights to use the business model
Creating a new business model
Selling the existing business model
Operating without any rights
What is one implication of unlimited liability?
Owners may lose personal assets.
Owners are exempt from taxes.
Owners have unlimited profits.
Owners have limited control.
What is a key characteristic of a cooperative business?
Owned and run by its members
Operated for profit
Owned by shareholders
Managed by a single owner
What is one advantage of a public limited company?
Limited access to capital
Ability to raise funds through stock market
Complete privacy in financial matters
Unlimited liability for owners
Which business structure is most likely to have a board of directors?
Corporation
Sole trader
Private limited company
Partnership
