Chapter 4: Types of Business Organisation
2 years ago
deanhoss
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  • Question 1
    20 seconds
    Q. The best definition of a sole trader is a business that
    answer choices
    only employs one person
    is owned by one person
    has a single customer
    is a single firm in the industry
  • Question 2
    20 seconds
    Q. One of the advantages of a sole trader business is that
    answer choices
    owners have limited liability
    shares can be sold to raise capital
    decisions and responsibilities can be shared
    the owner has complete control over decision making
  • Question 3
    20 seconds
    Q. One disadvantage of a sole trader business is that
    answer choices
    capital is limited to the owner's savings and bank loans
    decisions take too long to make
    owners may disagree 
  • Question 4
    20 seconds
    Q. One of the advantages of a partnership is that
    answer choices
    all partners have limited liability
    shares can be sold on the Stock Exchange
    the business can survive the death of the partners
    the business has access to more capital than a sole trader
  • Question 5
    20 seconds
    Q. Which of the following is not a feature of a private limited company?
    answer choices
    Shares can be issued to raise capital
    Shares can be bought  and sold on the Stock Exchange
    All owners of the business have limited liability
    The business continues after the death of a shareholder
  • Question 6
    20 seconds
    Q. The main reason why an entrepreneur will convert an LTD into a PLC is
    answer choices
    they don't want to remain in the private sector
    they want to gain the benefits of limited liability
    they want to keep the annual accounts secret
    they want to raise additional capital to expand the business
  • Question 7
    20 seconds
    Q. One of the main disadvantages of a PLC is the
    answer choices
    loss of control by the owners as additional shares are sold
    firms in the public sector are often less efficient
    possibility that if a company fails owners might lose assets
  • Question 8
    20 seconds
    Q. Which of the following statements about PLCs is most true
    answer choices
    The firm is owned and controlled by the workers
    The firm is owned by the directors but run by shareholders
    The firm is owned by shareholders and run by directors
    The firm is owned and controlled by the government
  • Question 9
    20 seconds
    Q. One of the reasons an entrepreneur might buy a franchise is
    answer choices
    it is cheaper than setting up a new business venture
    there is complete control over important decisions
    the risk of failure is lower
  • Question 10
    20 seconds
    Q. What is the advantage to a business of selling a franchise license to franchisee?
    answer choices
    The business can expand more quickly
    The franchisor owns all of the shops
    The business buying the franchise is likely to be successful
  • Question 11
    20 seconds
    Q. One of the disadvantages of an entrepreneur buying a new franchise is
    answer choices
    the profits of the franchisor's business will be lower
    a share of the set up costs will be paid to the franchisor
    consumers are less likley to not all decisions are taken by the franchisee
    consumers are less likley to have heard of the franchise
  • Question 12
    20 seconds
    Q. All of the following are advantages of joint ventures except
    answer choices
    The cost of a new project can be split between companies
    Manufacturing costs will be divided between the firms
    Joint venture companues can enjoy economies of scale
    Management of a joint venture might cause disagreement
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