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- Multiple ChoicePlease save your changes before editing any questions.
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
- Multiple ChoicePlease save your changes before editing any questions.
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
- Multiple ChoicePlease save your changes before editing any questions.
What are the owners of private and public limited companies called?
Stakeholders
Managers
Board of directors
Shareholders
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is a drawback for an entrepreneur setting up a business as a sole trader?
Profit is shared
Financial accounts are kept private
Limited liability
Unlimited liability
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is an advantage of operating a large established business as a public limited company?
Shares can be sold to the public to raise additional finance
Financial accounts are published
Shares can only be sold to invited investors to raise finance
Owners have unlimited liability
- Multiple ChoicePlease save your changes before editing any questions.
A private limited company may change into a public limited company because it wants:
Limited liability
To raise additional finance
Unlimited liability
To avoid takeover
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following statements is always true of a public limited company?
Shareholders have day to day control of the company
Liability is limited
The ability to expand is limited
Board of directors own the business
- Multiple ChoicePlease save your changes before editing any questions.
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole trader
Partnership
LTD
PLC
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is a disadvantage of being a public limited company?
The business is at risk of takeover
Large sums of money can be raised
Unlimited liability
Limited liability
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
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