Revision for checkpoint 3

A partnership is a business that is owned by just one person.

• true

• False

Identify an advantage of a sole proprietorship.

• The owner keeps all the profit.

• The owner has unlimited liability.

• The owner must work long hours.

• More than one person invests in the business. More than one person invests in the business.

Identify a disadvantage of a partnership.

• If one partner leaves, the business will grow.

• The owners have more work to do because they must do everything together.

• If one partner leaves, the business must close.

• It is difficult to set up a partnership. It is difficult to set up a partnership.

Which of the following are characteristics of incorporated businesses? (e.g. private and public limited companies)

• Unlimited liability and no separate legal identity

• Unlimited liability and separate legal identity

• Limited liability and no separate legal identity

• Limited liability and separate legal identity Limited liability and separate legal identity

Identify an advantage of a public limited company.

• Easy to sell shares and raise finance.

• Difficult to sell shares and raise finance.

• Easy to set up.

• Difficult to set up. Difficult to set up.

Google and NASA decided to work together to set up a new a business

What type of business structure is this an example of?

• Sole proprietorship

• Partnership

• Joint venture

• Franchise Franchise

McDonald’s is a business which allows another business to use its name, logos and products

What type of business structure is this an example of?

• Sole proprietorship

• Partnership

• Joint venture

• Franchise

Laila wants to start a flower delivery business. She needs money to start the business and wants to sell shares privately to ten of her friends. Anyone who owns shares in her business will have a say in business decisions.

Recommend a business structure for Laila.

• Sole proprietorship

• Partnership

• Private limited company

• Public limited company Public limited company

Laptop Land is a large international company with thousands of shareholders. Last year, it appointed a new Board of Directors. The company wants to increase production of laptops. The Board of Directors is thinking of raising money by selling more shares to the public.

• Sole proprietorship

• Partnership

• Private limited company

• Public limited company Public limited company