Unit 13 - The Business Unit

Who owns a public sector organization?

• directors

• government

• shareholders

• workers

What is a general partnership?

• a business unit formed by shareholders

• a business unit with limited liability

• an association of individuals engaged in business

• an organization able to sue and be sued in its own name

What is a feature of a sole proprietorship?

• continuity of ownership

• freedom in decision-making

• limited liability

• unlimited private capital

How are profits and losses in a partnership shared when there is no partnership deed?

• according to the purchases made by each partner

• equally amongst all the partners

• in proportion to the capital invested

• in relation to the hours worked by each partner

What is formed when a large company, for a fee and a percentage of turnover, allows a small company to trade using its name?

• franchise

• monopoly

• partnership

• public corporation

Who controls a public corporation?

• a board of directors elected by shareholders

• a board of management appointed by the government

• shareholders who buy shares on a stock exchange

• tax payers who provide capital thorough their taxes

What is the purpose of the Certificate of Incorporation when setting up a company?

• to advertise the sale of shares to the public

• to establish the identity of the company

• to register the company as a legal entity

• to set out the rules for operating the company

Which statement explains the term ‘limited liability’?

• The amount of money put into a business is limited by law.

• The business has a limited amount of time to pay its debts.

• The business limits the range of goods it sells

• The owners’ responsibility for debts is limited to their investment.

Most countries have a mixed economy. This means the economy has

• a public sector and a private sector.

• both private limited companies and public limited companies

• Businesses involved in exporting and importing.

• Workers employed in both agriculture and manufacturing.

Which factor is most likely to influence the location of a shopping centre?

• availability of raw materials

• distance from suppliers

• local labour supply

• nearness to centres of population