Element 1 Revision (1.2) 1.2.1 to 1.2.6 Common Quiz

Which business model is characterised by a single individual owning and operating the business?

• Sole trader

• Partnership

• Private limited company

• Public limited company

What is a key advantage of a public limited company?

• Less regulatory scrutiny

• Limited liability for shareholders

• Easier to manage

• Fewer shareholders

In a partnership, what is one disadvantage for the partners?

• Limited liability

• Shared decision-making

• Unlimited liability

• High capital investment

What is a primary feature of a private limited company?

• Shares traded on the stock exchange

• Unlimited number of shareholders

• Limited liability for its owners

• No need for directors

Which organisational structure is known for having few levels of management and wide spans of control?

• Functional

• Hierarchical

• Flat

• Divisional

What function does management accounting primarily serve?

• Preparing tax returns

• Internal decision-making support

• External reporting

• Auditing

Which role is responsible for managing the company's outgoing invoices?

• Accounts receivable

• Accounts payable

• Payroll

• Internal audit

What is one advantage of a franchise for the franchisor?

• High initial investment

• Reduced control over operations

Which organisational structure is best known for its flexibility and ability to handle complex projects?

• A. Functional

• B. Hierarchical

• C. Divisional

• D. Matrix

Which area of accounting focuses on the preparation of financial statements?

• A. Cost accounting

• B. Management accounting

• C. Financial accounting

• D. Internal audit