BM Week 3: Types of Business Entities

What is the main difference between the private and public sector?

• The private sector is entirely government-owned, while the public sector is profit-driven.
• The main difference is that the private sector is profit-driven and privately owned, whereas the public sector is government-operated and funded by taxes.
• The private sector focuses on social welfare, whereas the public sector aims for profit.
• Both sectors operate under the same funding model and ownership structure.

The difference between sales revenue and cost is:

• Revenue
• Loss
• Expense
• Profit

Another name for a public sector company is:

• State-owned enterprise

• Multinational company
• Non-profit organization
• Private corporation

Select all the reasons there are public sector companies

• protect citizens

• ensure basic services

• ensure that companies are well-managed

• create competition

• provide employment opportunities

What is a sole trader?

• A sole trader is a partnership of multiple individuals.
• A sole trader is a type of corporation.
• A sole trader is a self-employed individual running their own business.
• A sole trader is an employee of a larger company.

What does it mean that a business is unincorporated?

• An unincorporated business is a type of corporation.
• An unincorporated business has limited liability for its owners.
• An unincorporated business is not registered as a corporation and has no separate legal identity from its owners.
• An unincorporated business is registered with the government as a legal entity.

In business, what is partnership?

• A partnership is a business model that requires only one owner.
• A partnership is a type of sole proprietorship.
• A partnership is a business arrangement where two or more parties share ownership and management responsibilities.
• A partnership is a legal entity that operates independently of its owners.

What is the main difference between a sole trader and a partnership?

• A sole trader can have employees, while a partnership cannot.
• A sole trader is a legal entity, whereas a partnership is not.
• A sole trader operates alone, while a partnership involves multiple owners.
• A sole trader must register with the government, while a partnership does not need to.

What is a privately held company?

• A privately held company is owned by the government and trades publicly.
• A privately held company is one that has no employees and operates solely online.
• A privately held company is a type of non-profit organization that donates all profits.
• A privately held company is one that is owned by private individuals or entities and does not trade its shares publicly.

What is a shareholder?

• A shareholder is a type of investment fund.
• A shareholder is a company employee.
• A shareholder is an owner of shares in a company.
• A shareholder is a government representative.