Business Activity

Front

Which of the following is a benefit of being a Sole Trader? The owner has limited liability, Finance can be raised by selling shares to friends and family, The owner has complete control over business decisions, Workload can be shared between the owners

Back

The owner has complete control over business decisions

Front

Which of the following is a benefit of being a Partnership? The partners have limited liability, Finance can be raised by selling shares to friends and family, One person has complete control over business decisions, Each partner can contribute finance and skills to the business

Back

Each partner can contribute finance and skills to the business

Front

Which of the following is a benefit of setting a business up as a Private Limited Company (Ltd)?
The owners have limited liability
It's the quickest and cheapest type of business to set up
The finances of the business can be kept private
Dividends must be paid to the shareholders

Back

The owners have limited liability

Front

Which of the following is a benefit of setting a business up as a Public Limited Company (plc)?
Options:
The owners have unlimited liability
Large sums of finance can be raised by selling shares on the stock exchange
The business can be taken over if someone buys 51% or more of the shares
Members of the public can buy products and services from the business

Back

Large sums of finance can be raised by selling shares on the stock exchange

Front

What does the term unlimited liability mean?

Back

The owners of the business are personally responsible for the debts of the business, and might have to use their own money to pay off debts.

Front

Which of the following objectives is a small, new business most likely to have when entering a competitive market?
Options:
To make £1 million profit in the first month of trading,
To expand to 3 other countries,
To survive the first year of trading,
To be the market leader within the first 6 months

Back

To survive the first year of trading

Front

Which of the following is an internal stakeholder of a business?
The government, A supplier, A customer, An employee

Back

An employee

Front

Why is the government a stakeholder of most businesses?

Back

The government receives taxes from businesses

Front

Which of the following is an example of horizontal growth? A car factory taking over another car factory, A car factory taking over a supplier of parts, A car factory taking over a car dealership, A car factory taking over a coffee shop

Back

A car factory taking over another car factory

Front

Which of the following is an example of backward vertical growth?
A car factory taking over another car factory
A car factory taking over a supplier of parts
A car factory taking over a car dealership
A car factory taking over a coffee shop

Back

A car factory taking over a supplier of parts