Quiz To Test Your Knowledge Of Business Ownership!

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  • 1/8 Questions

    Which of these companies is a franchise?

    • New Look
    • Zeb's
    • Subway
    • Odeon Cinema
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About This Quiz

A multiple choice quiz to test your knowledge of business ownership!

Quiz To Test Your Knowledge Of Business Ownership! - Quiz

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  • 2. 

    What is the maximum number of people that can be involved in a partnership?

    • 1-20

    • 1-40

    • 1-60

    • 1-80

    Correct Answer
    A. 1-20
    Explanation
    A partnership is a business structure where two or more individuals come together to carry out a business venture. The maximum number of people that can be involved in a partnership is typically limited to 20. This limitation ensures that the partnership remains manageable and allows for effective decision-making and coordination among the partners. Having too many partners can lead to complications and difficulties in running the business smoothly. Therefore, the correct answer is 1-20.

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  • 3. 

    Which form of ownership is 'Matthew & Bragg Solitictors' likely to come under?

    • Sole Trader

    • Partnership

    • Franchise

    • Private Limited Company (Ltd)

    Correct Answer
    A. Partnership
    Explanation
    'Matthew & Bragg Solicitors' is likely to come under the form of ownership known as Partnership. A partnership is a business structure in which two or more individuals share ownership, responsibilities, and profits of the business. In this case, Matthew and Bragg are likely to be the partners of the solicitors' firm, indicating a partnership form of ownership.

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  • 4. 

    Which of these is the correct definition for Unlimited Liability?

    • The owners are not liable for the firms debt and will only lose the amount they initially invested

    • The owners are personally liable for the firms debt and may have to pay them out of their own pocket

    Correct Answer
    A. The owners are personally liable for the firms debt and may have to pay them out of their own pocket
    Explanation
    Unlimited liability refers to a situation where the owners of a firm are personally responsible for the company's debts and may have to use their personal assets to pay off the debts. This means that if the firm cannot meet its financial obligations, the owners can be held personally liable and may have to bear the financial burden by using their own money. This is in contrast to limited liability, where the owners' liability is limited to the amount they have invested in the company.

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  • 5. 

    Which of these forms of ownership has Unlimited Liability?

    • Sole Trader

    • Charities

    • Private Limited Company (ltd)

    • Public Limited Company

    Correct Answer
    A. Sole Trader
    Explanation
    A sole trader has unlimited liability, meaning that the owner is personally responsible for all debts and liabilities of the business. This means that if the business fails or incurs significant debts, the owner's personal assets can be used to settle those debts. In contrast, charities, private limited companies (ltd), and public limited companies have limited liability, where the owners' personal assets are protected and only the assets of the business are at risk.

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  • 6. 

    Why is it benefical for a company to have Limited Liability?

    • It means they can keep all their profits

    • If the company goes bust they do not have to repay debts out of their own pocket

    • Because if you have unlimited liability you have to pay the debts back yourself

    • Because your staff will like you more

    Correct Answer
    A. If the company goes bust they do not have to repay debts out of their own pocket
    Explanation
    Limited liability is beneficial for a company because it ensures that the owners or shareholders are not personally responsible for the company's debts. If the company goes bankrupt or faces financial difficulties, the owners' personal assets are protected, and they are not required to repay the debts from their own pockets. This provides a sense of security and reduces the financial risk for the owners, encouraging investment and entrepreneurship.

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  • 7. 

    Which of these is not a benefit of franchising?

    • The franchisee benefits from national advertising

    • Allows an individual to start up a business with less risk involved

    • You have to follow the rules and standards of the franchise, there is less flexibility for you to do what you want

    • You benefit from the reputation of the franchise

    Correct Answer
    A. You have to follow the rules and standards of the franchise, there is less flexibility for you to do what you want
    Explanation
    Franchising offers numerous benefits, such as the ability to benefit from national advertising, start a business with reduced risk, and leverage the reputation of the franchise. However, one drawback of franchising is that franchisees must adhere to the rules and standards set by the franchise. This lack of flexibility restricts their ability to make independent decisions and operate the business according to their own preferences.

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  • 8. 

    Which of the following is a reason why sole traders are successful?

    • They can offer a personalised, specialist service that meets the needs of their customers

    • Because unlimited liability is a 'protection' against debt

    • Because partnerships mean you can share the workload so you do what you're best at

    • Because you benefit from the marketing done by the franchiser

    Correct Answer
    A. They can offer a personalised, specialist service that meets the needs of their customers
    Explanation
    Sole traders are successful because they have the ability to offer a personalised, specialist service that caters to the specific needs and preferences of their customers. As a sole trader, they have the freedom to tailor their products or services to meet individual customer requirements, providing a unique and customized experience. This level of personalization and specialization often leads to increased customer satisfaction and loyalty, ultimately contributing to the success of the sole trader.

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Quiz Review Timeline (Updated): Jul 26, 2024 +

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  • Current Version
  • Jul 26, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • May 24, 2010
    Quiz Created by
    Hm00007
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