Business Quiz

What is meant by the term 'sole trader'?

• Business structure which is incorporated

• Business structure which is owned & operated by one person

• A person who trades alone, without employing others

• A business which has a separate legal identity from the owner

What is the primary advantage of being a sole trader?

• Ability to sell shares to the public

• Access to larger capital resources

• Full control over business decisions

• Limited liability protection

What is a common reason for someone to choose the sole trader business structure?

• Simple setup and low costs

• Desire for shared decision-making

• Requirement for extensive regulatory compliance

• Need for a formal board of directors

Business owned by 2 or more people:

(a)  

What is a potential disadvantage of being a sole trader?

• Access to government grants

• Ability to attract investors easily

• High level of personal liability

• Limited decision-making authority

What is a common characteristic of a sole trader's business?

• It is often small and locally focused

• It is subject to strict regulatory oversight

• It requires a formal partnership agreement

• It has multiple shareholders

A shareholder is an owner of which type of business? (answer- all simple letters)

(a)  

Which of the following is a common challenge faced by sole traders?

• Ability to hire multiple employees

• Access to a large customer base

• Difficulty in obtaining loans

• Limited operational hours

Private Limited Companies are an example of

• Unincorporated Business

• Incorporated Business

What is the main difference between private limited companies and public limited companies?

• Private limited companies are incorporated while public limited companies are not.

• If any shareholder dies a private limited company would end while a public limited company would continue

• Private limited companies are unincorporated while public limited companies are not.

• the general public can invest in a public limited company, whereas in a private limited company a new shareholder can only be admitted with the authorisation of others.