Unit 3: Types of Business Organisations

What is another term for a sole proprietor?

• • Company owner

• • Sole trader

• • Partnership leader

• Corporation executive

Who typically assists a sole trader in his business operations?

• Shareholders

• Board of Directors

• • Family members and employees

• • Government authorities

What is the sole trader solely responsible for in his business?

• • Market competition

• • Profit and loss

• • Tax regulations.

• Employee salaries

What liability does a sole trader assume in his business?

• Limited liability

• Shared liability

• Unlimited liability

• No liability

What is a potential consequence for a sole trader in case of business failure?

• • Government fines

• • Limited loss

• • Employee layoffs

• • Losing personal assets

What is the advantage of sole proprietorship mentioned in the passage?

• • Complex setup

• High registration cost

• Simple setup

• • No registration required.

What usually drives the sole trader to succeed?

• External motivations

• • Financial incentives

• Passion for success

• • Government regulations

How is sole proprietorship generally taxed in most countries?

• Higher personal income tax

• No taxation

• • Same as bigger companies

• • Lower personal income tax

How many people typically own a partnership business?

• • Less than 5

• • 20 or more

• Exactly 20

• 2 or more but less than 20

What is an example of a partnership business?

• • Supermarkets

• • Manufacturing companies

• Law firms

• Technology startups