Travel and Tourism - Revision Quiz

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

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

What are the owners of private and public limited companies called?

• Stakeholders

• Managers

• Board of directors

• Shareholders

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

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

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

Which of the following is a disadvantage of setting up a business as a partnership?

• Shared losses

• Shared workload

• Shared profit

• More ideas generated

Airlines that are mainly used by Tour Operators, but can be rented out by organisations are:

• Scheduled Airlines

• Charter Airlines

• Low cost Airlines

• Domestic Airlines

Airlines that run to a timetable and must operate even if only a few seats are booked. These airlines usually offer first and business class flights.

• Charter

• Low cost

• Inbound Airlines

• Scheduled

These airlines run to a timetable and must operate even if only a couple of seats are booked. The flights can usually only be booked over the internet and all you get is your seat - everything else has to be paid for.

• Charter

• Scheduled

• Low Cost

• Outbound