Font size
WorksheetsForms of Business
Total questions: 86
Worksheet time: 42mins
Which of the following is a type of business ownership?
Sole Proprietorship
Partnership
Corporation
All of the above
Match the following forms of business with their characteristics:
Owned by one person.
Sole Proprietorship
Owned by two or more people.
Partnership
Separate legal entity.
Corporation
A (a) is a business owned by shareholders and is a separate legal entity.
Sole Proprietorship
Partnership
Corporation
What is 'price skimming'?
A pricing strategy involving high initial prices
A method of reducing production costs
A technique for increasing market share
A way to improve customer satisfaction.
Match the following terms with their definitions:
The process of negotiating work conditions
Collective Bargaining
Assigning responsibility to others
Delegation
Acting like an entrepreneur within a large organization.
Intrapreneurship
Which of the following is a type of business structure?
Sole trader
Partnership
Private limited company
All of the above
Match the following business concepts with their descriptions:
Franchising
A business model that allows individuals to operate a branch of a larger company
Social enterprise
A business that aims to address social issues
Online businesses
Businesses that operate primarily on the internet.
Growth to a (a) involves stock market flotation.
Sole trader
Partnership
PLC
Private limited company
Match the following professionals with their services:
Legal advice
Solicitor
Animal care
Vet
Dental care
Dentist
Which of the following is NOT a type of business form mentioned in the document?
Sole trader
Partnership
Corporation
Public limited company (PLC)
Match the following business forms with their characteristics:
Can sell shares to the public
Public limited company (PLC)
Owned by one person
Sole trader
Owned by two or more people
Partnership
Limited liability for owners
Private limited company (Ltd)
Most businesses in the UK are a Ltd because they can sell shares to friends and family to raise money and they get the benefit of (a) .
Unlimited liability
Limited liability
No liability
Shared liability
What does limited liability mean for the owner of a business?
The owner is personally liable for business debts.
The owner has no personal liability for business debts.
The owner shares liability with the business.
The owner is liable for debts from personal funds.
Limited liability means that the owner of the business has a separate legal identity from the business and is NOT liable for payment of the debts from their own (a) .
business funds
personal funds
shared funds
external funds
Match the following terms with their correct descriptions: Limited Liability, Personal Funds, Business Debts
Owner is not liable for these
Business Debts
Separate from business identity
Personal Funds
Liability protection for owners
Limited Liability
What is unlimited liability?
The owner is not responsible for business debts
The owner is personally responsible for business debts
The business is responsible for its own debts
The government pays the business debts.
Which of the following is a characteristic of a sole trader?
A) Limited liability
B) Unlimited liability
C) Shared ownership
D) Corporate tax
Match the following business structures with their characteristics: Sole Trader, Partnership, Private Limited Company.
Owned by shareholders
Private Limited Company
Owned by one person
Sole Trader
Owned by two or more people
Partnership
Which of the following is a type of business structure where the business is owned and run by one individual?
Partnership
Sole trader
Limited company (Ltd)
Public Limited Company (Plc)
Match the following business structures with their characteristics:
Owned by shareholders and can sell shares to the public
Public Corporation
Owned by one individual
Sole Proprietorship
Owned by two or more individuals
Partnership
Owned by shareholders but cannot sell shares to the public
Private Corporation
In the transition from a Sole trader to a Partnership, which of the following is a key change?
Increase in the number of owners
Ability to sell shares to the public
Limited liability
No change
What is another name for a sole trader?
Sole proprietor
Business partner
Corporation
Franchise
Match the following characteristics with the correct business type: 1) Unlimited liability 2) Can employ people but not involve them in control 3) Tends to be small businesses.
Sole trader
Unlimited liability
Corporation
Can employ people but not involve them in control
Partnership
Tends to be small businesses.
A sole trader is a business owned by (a) . A) multiple partners B) one owner C) a corporation D) a government.
multiple partners
one owner
a corporation
a government
Which of the following is a characteristic of a sole trader?
Limited liability
Multiple owners
Unlimited liability
Corporate tax
A sole trader is a business owned by (a) .
One person
Two partners
A corporation
A group of investors
Which of the following is an advantage of being a sole trader?
Unlimited liability
Easy to set up
Difficult to raise money
No economies of scale
A disadvantage of being a sole trader is (a) .
Easy to set up
Unlimited liability
All profits kept by the owner
Can offer personal attention to customers.
What is the primary responsibility of each partner in a partnership regarding profits and gains?
Sharing profits equally
Paying tax on their share
Managing the business
Raising money for the business
Match the following aspects of partnerships: Raising money, Managing the business, Sleeping partners
Delegating responsibilities
Managing the business
Using own assets, cash, or loans
Raising money
Not involved in running the business
Sleeping partners
In a partnership, the profits and gains are shared among the partners unless the (a) states otherwise.
Partnership agreement
Tax policy
Business plan
Employee contract
What is a common characteristic of partnerships?
They are usually formed by a single expert
They consist of groups of experts working together
They are always limited to two people
They do not require any formal agreement.
Which of the following is an advantage of partnerships?
Unlimited liability
Profits go to partners
Partners may have disagreements
Control of business.
Which of the following is a way for LTDs to expand and grow?
Selling shares to the public
Selling more shares to friends and family
Selling more shares to the public
Selling more shares to friends and family, giving the business more capital.
Match the following characteristics with the correct description: Public buying shares.
Shares cannot be bought by the public
Control of Shares
LTDs owners have full control of who buys the shares
Private Ltd
Owners can only lose their original investment.
Limited Liability
LTDs have the benefit of (a) , meaning those that own or buy shares in the business can only lose their original investment.
Unlimited liability
Limited liability
No liability
Partial liability
What is a key characteristic of limited companies?
Unlimited liability
Limited liability
No liability
Shared liability
Limited liability gives the owners some protection over their (a) .
Business assets
Personal finances
Employees
Market share
Which of the following is an advantage of a private limited company?
Unlimited liability
Can raise extra capital by selling shares to the public
Limited liability
No legal status separate from shareholders.
A private limited company has its own legal status, separate from the (a) .
Managers
Shareholders
Employees
Customers
Which of the following is a type of business model that involves granting licenses to operate under a brand's name?
Social Enterprise
Franchising
Lifestyle Business
Online Business
Match the following business types with their descriptions:
Franchising
A business model where individuals can buy the rights to open and operate a business under a brand.
Social Enterprise
A business that aims to address social issues while generating profit.
Lifestyle Business
A business that prioritizes personal lifestyle choices over profit maximization.
Online Business
A business that operates primarily on the internet.
A (a) is a business model that focuses on achieving social goals alongside profit.
Franchising
Social Enterprise
Lifestyle Business
Online Business
What is a key disadvantage of a sole proprietorship?
Shared decision-making
Complex tax filing
Unlimited liability
Limited liability
Which of the following is a benefit of forming a corporation?
Unlimited liability
Single taxation
Limited liability
Easy to set up
What is a common feature of a partnership agreement?
Requirement for public disclosure
Unlimited liability for all partners
Limited number of partners
Details of profit sharing
A type of business organisation where a person individual responsible for capital, bearing risk & management is called (a)
The most important document used in partnership business is (a) .
Registration of a partnership business is (a)
In a general partnership liability of partners is (a)
The liability of members of a cooperative society is (a) to the extent of their capital contribution.
The cooperative society lays emphasis on (a) motive.
There is a separate law that governs sole proprietorship.
true
false
Marketing cooperative society is established to help small producers in selling their products.
True
False
A nominal partner is one who allows the use his/her name by a firm, but does not contribute capital.
True
False
Which type of business organisation is the most popular and suitable for Small business.
a) Joint Hindu Family
b) Sole Proprietorship
c) Partnership
d) Cooperative society
The Act which governs the formation of a partnership business is Indian Partnership Act.
(a). 1932
(b). 1956
(c). 1949
(d). 1912
The minimum number of members required to form a cooperative society is-
a) Five
b) Ten
c) Twenty
d) Two
The cooperative society is required to be registered under the Cooperative Society Act______
a) 2013
b) 1932
c) 1956
d) 1912
Which form of organisation is suitable if direct control over operations & absolute decision making power is required in business?
a) Joint Stock Co.
b) cooperative society
c) Sole proprietorship
d) HUF
Identify the type of form of business organisation
(a)
Identify the type of cooperative societies
(a)
Name the feature of partnership.
(a)
Name the type of partner.
(a)
Which of the following would go into box A
Limited Liability
Unlimited Liability
Unincorporated
Incorporated
Which business form sees the owner and the business as two seperate entities?
Unincorporated
Incorporated
If a business and its owner are not seen as a seperate entities it has....
Limited liability
Unlimited liability
How many workers can a Sole Trader have?
1
2-20
21+
However many they want
Which is simpler to run?
Sole trader
Partnership
A partnership is where 2-20 individual run a business. If they were to go into debt what would happen?
Debt will be spread evenly between partners
Debt will be given to the lead partner to spread how they deem fit
A court will decide which partner made the mistake and give them the debt
A partnership agreement will decide how debt will be managed.
Sole traders pay...
Income tax
Corporation tax
This business type can raise finances by selling shares to friends and family
Public limited company
Private limited company
Sole trader
Partnership
Which of the followings are risks assoiciated with PLCs
Easier to raise capital
Accounts are published
Can have hostile takeovers
Likely to have better supplier relationships
Who have lower tax rates?
Incorporated
Unincorporated
Which form requires £50,000 in share capital?
Sole trader
PLC
LTD
Partnership
A sum of money which is paid regularly by a company to its shareholder is called
Pay
Salary
Revenue share
Dividends
What is the simplest form of business organization?
Corporation
Sole Proprietorship
Partnership
Cooperatives
Which form of business organization has unlimited liability for its owners?
Corporation
Sole Proprietorship
Partnership
All of the above
A business owned by two or more people is called a
Corporation
Sole Proprietorship
Cooperatives
Partnership
Which business organization is often associated with franchising?
Corporation
Partnership
Cooperatives
Sole Proprietorship
A business entity that is not formed for profit is called a:
Corporation
Sole Proprietorship
Partnership
Non-Profit Organization
A sole proprietorship is a legal entity separate from its owner.
True
False
Corporations are subject to double taxation.
True
False
Partnerships are always formed by two or more individuals.
True
False
Cooperatives are typically owned and controlled by their members.
True
False
Franchises are always owned by a single individual.
True
False
