1.2 Types of Business Entities

The group with overall responsibility for the day-to-day running of a limited liability company is known as the Board of Directors.

• TRUE

• FALSE

A common feature of the commercial (for-profit) businesses is the aim to generate profit.

• TRUE

• FALSE

Social enterprises, including cooperatives and non-governmental organizations, operate in the public sector of the economy.

• TRUE

• FALSE

Sole traders do not have to work alone and can employ as many employees as needed.

• TRUE

• FALSE

Unlimited liability is an advantage of being a sole trader.

• TRUE

• FALSE

Businesses owned and run by the government operated in the public sector.

• TRUE

• FALSE

Partnerships provide the opportunity for all owners to have limited liability.

• TRUE

• FALSE

The provision of goods and services that are not provided by private businesses is a major objective of the public sector.

• TRUE

• FALSE

Having limited liability means that owners of a business can only lose the money they have invested, and no more.

• TRUE

• FALSE

A business that is owned and operated by one person is known as a sole trader.

• TRUE

• FALSE