10 Business Revision

An autocratic leader has individual control over all decisions and little input from employees.

• True

• False

Democratic leaders do not value others' input

• True

• False

Laissez-faire leaders are hands-off and allow employees to make decisions.

• True

• False

When is a democratic leadership style used?

• When team agreement is needed.

• Greater motivation and commitment from employees.

• Rely on skilful and knowledgeable team members.

• All of the above

This is the simplest business structure to establish

• Franchise

• Private company

• Sole trader

• Public company

A partnership ownership structure has unlimited liability

• True

• False

Limited liability means your personal finances are considered separate to the business

• True

• False

A sole trader and public companies have unlimited liability

• True

• False

Unlimited liability relates to organisations whose owners are responsible for debt and liabilities accrued by the business.

• True

• False

The legal document when creating a partnership is called...

• Partnership Document

• Partnership Memorandum

• Partnership Agreement

• Partnership Memorandum of Understanding