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business organisation

Total questions: 28

Worksheet time: 17mins

Name
Class
Date
1.

An example of a market economy is

a)

North Korea

b)

United States

c)

Former Soviet Union

d)

Inuit

2.

economic system

a)

organized way in which a society provides for the wants and needs of its people


b)

federal program of disability and retirement benefits that covers most working people


c)

income that does not increase even if prices go up


d)

market economy in which private citizens own the factors of production


3.

capitalism

a)

organized way in which a society provides for the wants and needs of its people


b)

federal program of disability and retirement benefits that covers most working people


c)

market economy in which private citizens own the factors of production


d)

income that does not increase even if prices go up


4.

__________ is the simplest and most common type of business.

a)

A sole trader

b)

A partnership

c)

A cooperative

5.

Sole traders have _____________ liability.

a)

half

b)

limited

c)

unlimited

6.

A partnership is an agreement between a minimum of _______ partners.

a)

twenty

b)

two

c)

twelve

7.

In an ordinary partnership ___________ take an active role in running the business.

a)

all partners

b)

not all partners

c)

only two partners

8.

Limited company and joint-stock company ______________.

a)

are not synonyms

b)

are synonyms

9.

In a limited partnership _____________ for losses.

a)

only one partner is liable

b)

all partners are liable

c)

only two partners are liable

10.

The capital of a cooperative society is provided by the ___________.

a)

shareholders

b)

members

c)

ordinary people

11.

The ______________ is the person who establishes the brand's trademark.

a)

franchisor

b)

franchisee

c)

franchise

12.

What is the business structure of many multinationals?

a)

divisional

b)

functional

c)

matrix

13.

Private limited companies __________ on the stock exchange.

a)

can be quoted

b)

cannot be quoted

14.

A limited company _________ a legal existence separate from its shareholders.

a)

has

b)

doesn't have

15.

In the hierarchical structure, the chain of command is like __________.

a)

a pyramid

b)

a bar chart

16.

In the functional structure, workers are divided according to _____________.

a)

the products and the service they work on

b)

their specific skills and tasks

17.

In the divisional structure, workers are divided according to _____________.

a)

specific projects with well-defined functions

b)

segments that correspond to particular products or markets

18.

In the matrix structure, workers are divided according to _____________.

a)

specific projects with well-defined functions

b)

their tasks and skills

19.

One of the claimed advantages of a sole trader business is that:

a)

1) owners have limited liability

b)

2) shares can be sold to raise capital

c)

3) decisions and responsibilities can be shared

d)

4) the owner has complete control

20.

Which of the following is not a feature of a private limited company?

a)

1) Shares can be issued to raise capital

b)

2) Shares can be bought and sold on the Stock Exchange

c)

3) All owners of the business have limited liability

d)

4) The business continues after the death of shareholder

21.

The main reason why the owners of many private limited companies convert their businesses into public limited companies is because:

a)

1) they do not want to remain in the private sector

b)

2) they want to gain the benefits of limited liability

c)

3) they want to keep the annual accounts secret

d)

4) they want to raise additional capital to expand the business

22.

One of the main drawbacks of many public limited companies is that:

a)

1) there can be a loss of control by the original owners as additional shares are sold

b)

2) firms in the public sector are often less efficient

c)

3) if the company were to fail the shareholders could lose all of their assets

d)

4) workers have to be asked for their opinions before major decisions are taken

23.

One of the reasons for a business buying a franchise is because:

a)

1) it is always much cheaper than setting up a new business venture

b)

2) there is complete control over important decisions

c)

3) the business can use its own name in advertisements

d)

4) the risks of failure are lower as it is buying a well known business idea

24.

What type of liability do sole traders have?

a)

Limited liability

b)

No liability

c)

Unlimited liability

d)

Shared liability

25.

A private limited company can be shortened to..

a)

PLC

b)

LTD

c)

Limited

d)

Private

26.

A private limited company is owned by who?

a)

Private individuals

b)

Owner

c)

Shareholders

d)

Board of Directors

27.

Being a sole trader means you can keep all the profits?

a)

True

b)

False

28.

A private limited company is controlled/run by who?

a)

Shareholders

b)

Board of Directors

c)

Board of Trustees

d)

Government