IB BM* 1.2.2 Types of business entities: Social Enterprises

Which statement does not apply to the concept of unlimited liability?

• There is no maximum amount of losses that owners could incur

• The legal responsibility of a company's debts applies to all owners of a listed company

• Owners with unlimited liability are personally held responsible for all the debts of the business

• Owners of sole proprietorships and ordinary partnerships are exposed to unlimited liability

What is the term used to describe businesses owned or operated by the government?

• Voluntary sector

• Public sector

• Private sector

• Cooperative sector

Which sector includes businesses owned by individuals, groups of individuals or even other organizations?

• Public sector

• Private sector

• Voluntary sector

• Secondary sector

Which type of businesses are for-profit social enterprises owned and managed by their members?

• Cooperatives

• Microfinance providers

• Public-private partnerships

• Public sector corporations

What is a deed of partnership?

• A document that outlines the rights and obligations of each owner in a partnership

• A certificate of incorporation for a company

• A government-issued license for business operation

• A fictitious term with no legal meaning

What do non-governmental organizations (NGOs) support?

• Political aims

• A single issue or cause

• A cause that is deemed to be socially desirable

• Profit-making activities

Which of the following best describes social enterprises?

• Businesses that focus solely on maximizing profit for shareholders

• Revenue-generating organizations with community objectives at their core

• Government-run organizations for public welfare

• Private companies with no social objectives

Which of the terms below is an alternative for "publicly held company"?

• Public sector corporation

• Joint-stock companies

• Public private partnerships

• Limited liability companies

Which type of businesses are for-profit social enterprises that offer a financial service to those without a job or on very low incomes?

• Public corporations

• Microfinance providers

• Cooperatives

• Public-private partnerships

Which of the following statements is true about an unincorporated business?

• The business is considered a separate legal entity from its owner.

• The business can issue shares to the public.

• The business is always owned by more than one person.

• The business is not considered to be separate from its owner.