Topic 1 Business Studies Warmup To Test

Which of the following is not a benefit of being a sole trader?

• Keep all profits

• Own boss

• Pursue personal goals

• Shared responsibility

A photography business owned by three sisters with unlimited liability is what type of business?

• Partnership

• Private limited company

• Public limited company

• Sole trader

Which of the following is an internal stakeholder in a partnership?

• Customer

• Shareholder

• Supplier

• Employee

Which business ownership type is most suitable for raising large capital for overseas expansion?

• Partnership

• Private limited company

• Public limited company

• Sole trader

Who is protected by limited liability?

• Customers

• Employees

• Shareholders

• Suppliers

What are customers most likely to be interested in?

• Employee wages

• Job security

• Product range

• Share dividends

Which is a disadvantage of being a sole trader?

• May need to work long hours

• Not allowed to employ staff

• Must share profits with others

• Must sell shares on the stock exchange

What does limited liability mean?

• Owners are not responsible for business debts

• Personal possessions are at risk in business failure

• Responsibility for debts is limited to investment

• Employees cannot sue the business

Which of the following defines an entrepreneur?

• Follows existing ideas

• Avoids financial risks

• Takes initiative and risks

• Works as an employee

What is a benefit of being a private limited company?

• Unlimited liability

• Can sell shares publicly

• Separate legal identity

• No corporate tax