1.2 Common business models and organisational structures Quiz

What is one key advantage of a sole trader?

• Limited liability

• Easy to set up

• Shared responsibility

• Access to more capital

Which type of business structure allows shareholders to have limited liability?

• Sole trader

• Partnership

• Private limited company

• Franchise

In a partnership, what is one disadvantage often encountered?

• Full control

• Shared profits

• Limited liability

• No legal formalities

Which organisational structure is characterised by a flat hierarchy?

• Divisional

• Functional

• Matrix

• Flat

What is a primary feature of a public limited company (PLC)?

• Shares not publicly traded

• Unlimited liability

• High regulatory requirements

• Sole ownership

What type of business model involves a franchisor and franchisee?

• Sole trader

• Partnership

• Corporation

• Franchise

What is a key advantage for a franchisee?

• Full operational freedom

• Established brand recognition

• No initial fees

• Complete profit retention

In a matrix organisational structure, employees report to:

• One manager only

• Two or more managers

• No managers

Which key operational area handles the preparation and presentation of financial statements?

• Management accounting

• Cost accounting

• Financial accounting

• Internal audit

What is a primary function of accounts receivable?

• Paying suppliers

• Collecting payments from customers

• Managing payroll

• Budgeting