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- 1. Multiple ChoiceThe best definition of a sole trader is a business thatonly employs one personis owned by one personhas a single customeris a single firm in the industry
- 2. Multiple ChoiceOne of the advantages of a sole trader business is thatowners have limited liabilityshares can be sold to raise capitaldecisions and responsibilities can be sharedthe owner has complete control over decision making
- 3. Multiple ChoiceOne disadvantage of a sole trader business is thatcapital is limited to the owner's savings and bank loansdecisions take too long to makeowners may disagree
- 4. Multiple ChoiceOne of the advantages of a partnership is thatall partners have limited liabilityshares can be sold on the Stock Exchangethe business can survive the death of the partnersthe business has access to more capital than a sole trader
- 5. Multiple ChoiceWhich of the following is not a feature of a private limited company?Shares can be issued to raise capitalShares can be bought and sold on the Stock ExchangeAll owners of the business have limited liabilityThe business continues after the death of a shareholder
- 6. Multiple ChoiceThe main reason why an entrepreneur will convert an LTD into a PLC isthey don't want to remain in the private sectorthey want to gain the benefits of limited liabilitythey want to keep the annual accounts secretthey want to raise additional capital to expand the business
- 7. Multiple ChoiceOne of the main disadvantages of a PLC is theloss of control by the owners as additional shares are soldfirms in the public sector are often less efficientpossibility that if a company fails owners might lose assets
- 8. Multiple ChoiceWhich of the following statements about PLCs is most trueThe firm is owned and controlled by the workersThe firm is owned by the directors but run by shareholdersThe firm is owned by shareholders and run by directorsThe firm is owned and controlled by the government
- 9. Multiple ChoiceOne of the reasons an entrepreneur might buy a franchise isit is cheaper than setting up a new business venturethere is complete control over important decisionsthe risk of failure is lower
- 10. Multiple ChoiceWhat is the advantage to a business of selling a franchise license to franchisee?The business can expand more quicklyThe franchisor owns all of the shopsThe business buying the franchise is likely to be successful
- 11. Multiple ChoiceOne of the disadvantages of an entrepreneur buying a new franchise isthe profits of the franchisor's business will be lowera share of the set up costs will be paid to the franchisorconsumers are less likley to not all decisions are taken by the franchiseeconsumers are less likley to have heard of the franchise
- 12. Multiple ChoiceAll of the following are advantages of joint ventures exceptThe cost of a new project can be split between companiesManufacturing costs will be divided between the firmsJoint venture companues can enjoy economies of scaleManagement of a joint venture might cause disagreement
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