Forms Of Business Organisation
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Business studies exam revision :)
- 1.The best definition of a sole trader form of business organisation is:
- A.
The business only employs one person
- B.
The business is owned by one person
- C.
The firm has a single customer
- D.
There is a single firm in the industry.
- 2.One of the claimed advantages of a sole trader business is that:
- A.
Owners have limited liability
- B.
Shares can be sold to raise capital
- C.
Decisions and responsibilities can be shared
- D.
The owner has independence
- 3.
- A.
Capital is limited to owner’s savings and bank loans
- B.
Decisions take too long to make
- C.
As they are government owned there is no profit motive
- D.
the owners may disagree.
- 4.
- A.
All partners always have limited liability
- B.
Shares can be sold on the Stock Exchange
- C.
The business survives the death of the partners
- D.
The business has access to more capital than a sole trader.
- 5.
- A.
Shares can be issued to raise capital.
- B.
Shares can be bought and sold on the Stock Exchange.
- C.
All owners of the business have limited liability.
- D.
The business continues after the death of shareholders.
- 6.
- A.
It is owned by the government and is in the public sector.
- B.
It is owned by shareholders who can sell their shares in the Stock Exchange.
- C.
It is quick and easy to set up with few legal formalities.
- D.
Its accounts can be kept private and it receives little coverage in the business
- 7.
- A.
They do not want to remain in the private sector
- B.
They want to gain the benefits of limited liability
- C.
They want to keep the annual accounts secret
- D.
They want to raise additional capital to expand the business.
- 8.
- A.
There can be a loss of control by the original owners as additional shares are sold
- B.
Firms in the public sector are often less efficient
- C.
if the company were to fail the shareholders could lose all of their assets
- D.
workers have to be asked for their opinions before major decisions are taken.
- 9.
- A.
They are owned and controlled by the workers.
- B.
They are owned by the directors but controlled by the shareholders.
- C.
The are owned by shareholders but controlled by directors.
- D.
They are owned and controlled by the government.
- 10.Which of the following statements about co-operative business organisations is true?
- A.
All co-operatives are only concerned with retailing.
- B.
Profits are shared equally amongst members.
- C.
They are owned by shareholders.
- D.
Workers have no say in decision-making.
- 11.
- A.
It is always much cheaper than setting up a new business venture
- B.
There is complete control over important decisions
- C.
The business can use its own name in advertisements
- D.
The risks of failure are lower as it is buying a well known business idea.
- 12.One of the advantages to a business of selling a franchise is that:
- A.
The business can expand more quickly
- B.
The franchisor owns all of the shops
- C.
The businesses buying the franchises are certain to be successful
- D.
The products sold in each shop will be different.
- 13.
- A.
Expanding a business to all parts of the country
- B.
When the government buys all of the assets of a private sector business
- C.
When a private limited company applies to become a public limited company
- D.
Opening a new division of the business in another country to become a multinational.
- 14.
- A.
the costs of a new project can be split between the companies involved
- B.
Manufacturing costs will be divided between the firms in the venture
- C.
Joint ventures between firms in different countries can create new market opportunities
- D.
Management of the joint venture will never lead to disagreements
- 15.
- A.
In cases where monopolies are likely to occur, public corporations will be best for consumers
- B.
In declining industries, public corporations, with government subsidies, would attempt to avoid job losses
- C.
By aiming to maximise profits public corporations will always make money for the government
- D.
a public corporation television service could make non-profitable programmes.
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