Forms Of Business Organisation Quiz

5 Questions

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Business Organisation Quizzes & Trivia

A few questions about the third chapter from the IGCSE Business Studies book: Forms of Business Organization


Questions and Answers
  • 1. 
    What is a disadvantage of being sole trader? 
    • A. 

      Limited capacity to expand business

    • B. 

      Own boss with complete control

    • C. 

      Higher costs of establishing

    • D. 

      Sale of shares is expensive

  • 2. 
    What is meant by franchise? 
    • A. 

      Any group or individual person with a direct interest in the performance and activities of business

    • B. 

      People who are potential buyers of a product or service

    • C. 

      A business based upon the use of the brand names, promotional logos and trading methods of an existing successful business

    • D. 

      Owners of a limited company that buy shares which represent part ownership of a company

  • 3. 
    What is an Annual General Meeting (AGM)? 
    • A. 

      A decision taken by a manager or company because of the moral code observed in that firm

    • B. 

      A group of employers join together to give benefits to their members

    • C. 

      The result of an agreement between countries to use the same currency for all business and other transaction

    • D. 

      A legal requirement for all companies in which they vote on who they want to be on the Board of Directors for the coming year. All shareholders may attend

  • 4. 
    • A. 

      The franchisee keeps profits from the outlet

    • B. 

      The franchisor pays for advertising

    • C. 

      The franchisor does not manage these new outlets

    • D. 

      Banks are often willing to lend to franchisees due to relatively low risk

  • 5. 
    • A. 

      Written and legal agreement between business partners

    • B. 

      The owners of a company – the shareholders – cannot be held responsible for the debts of the company they own

    • C. 

      One that does not have a separate legal identity

    • D. 

      Owners of a limited liability