Which of the following is a main feature of a sole trader?
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C. Unlimited liability A sole trader has unlimited liability, meaning they are personally responsible for all business debts. The other options describe features of partnerships or limited companies.
What is the primary advantage of a private limited company?
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B. Limited liability The main advantage of a private limited company is that shareholders have limited liability, protecting their personal assets. The other options are either disadvantages or incorrect.
Which type of business organisation is best suited for a small, local business with low risk?
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C. Sole trader A sole trader is often the best choice for a small, local business with low risk due to simplicity and full control. The other options involve more complexity or risk.
What is a key feature of a public limited company?
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C. Shares can be traded on the stock market A key feature of a public limited company is that its shares can be traded on the stock market, allowing for greater capital raising. The other options are incorrect or apply to other business types.
Which of the following is a disadvantage of a partnership?
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A. Unlimited liability for some partners In a partnership, some partners may have unlimited liability, meaning they are personally responsible for business debts. The other options are either advantages or incorrect.
What is a franchise?
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B. A business that sells its brand and business model to others A franchise is a business that sells its brand, products, and business model to others, allowing them to operate under the franchise name. The other options are incorrect.
Which of the following is a feature of a joint venture?
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B. Shared risks and rewards between partners A joint venture involves shared risks and rewards between partners for a specific project or business activity. The other options are incorrect or apply to other business types.
What is the main difference between an unincorporated business and a limited company?
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B. Limited companies have a separate legal entity The main difference is that limited companies have a separate legal entity, while unincorporated businesses do not. The other options are incorrect.
Which type of business organisation is best suited for a high-risk, innovative project?
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C. Joint venture A joint venture is often best suited for high-risk, innovative projects due to shared resources and expertise. The other options may not provide the necessary support or risk-sharing.
What is a key advantage of a public limited company?
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A. Limited liability for shareholders A key advantage of a public limited company is that shareholders have limited liability, protecting their personal assets. The other options are either disadvantages or incorrect.
Which of the following is a disadvantage of a sole trader?
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B. Difficulty in raising capital A sole trader often faces difficulty in raising capital due to the lack of shareholders or investors. The other options are either advantages or incorrect.
What is a key feature of a partnership?
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C. Shared decision-making and responsibilities A key feature of a partnership is shared decision-making and responsibilities among partners. The other options are either incorrect or apply to other business types.
Which type of business organisation is best suited for a business that wants to expand quickly?
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C. Public limited company A public limited company is often best suited for quick expansion due to the ability to raise capital through selling shares. The other options may not provide the necessary resources or support.
What is a key advantage of a franchise?
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B. Established brand and business model A key advantage of a franchise is the access to an established brand and business model, reducing the risk of failure. The other options are either disadvantages or incorrect.
Which of the following is a feature of a public corporation?
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C. Owned by the government A public corporation is owned by the government and operates in the public sector. The other options are either incorrect or apply to other business types.