Types of Business Ownership Quiz

What is a sole trader?

• A business owned and controlled by one person

• A business owned by two or more people

• A business owned by shareholders

• A business that offers shares to the public

What percentage of the total private sector business population in the UK were sole traders in 2019?

• 82%

• 75%

• 59%

• 45%

Which of the following is a benefit of being a sole trader?

• High startup costs

• Shared decision making

• Easy to set up

• Unlimited liability

What is a key disadvantage of being a sole trader?

• Unlimited liability

• Shared expertise

• High borrowing power

• Limited liability

What is a partnership?

• A business owned by one person

• A business owned by shareholders

• A business owned by two or more people

• A business that offers shares to the public

What is a key legal document in a partnership?

• Employment contract

• Shareholder agreement

• Partnership agreement

• Franchise agreement

What is a private limited company?

• A business owned by shareholders

• A business that offers shares to the public

• A business owned by two or more people

• A business owned by one person

What does 'Ltd.' stand for in a private limited company?

• Legal

• Limited

• Large

• Local

What is a key advantage of a private limited company?

• Shared decision making

• More tax efficient

• High startup costs

• Unlimited liability

What is a public limited company often referred to as?

• LLP

• PLC

• Inc.

• Ltd.