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Business Ownership Flashcards | StudBud
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Business Ownership
Business Ownership
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Questions
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Answers
1
Which of the description best describes an 'entrepreneur'?
Someone who risks their money setting up a business.
A shareholder in a company who buys shares for the dividend.
A government minister
A French tourist
2
Company owners will not be asked to pay business debts. What is this concept known as?
unlimited liability
limited exposure
limited liability
fixed options
3
Which of the following is the easiest to set up?
Partnership
Sole trader
Private Limited Company
Public Limited Company
4
What is an 'institutional investor'?
The government
Private individuals who own shares in a company
Shareholders with a large percentage of a company's shares
Banks and pension companies who buy shares in PLCs
5
True or false: sole traders can raise finance by selling shares in their business
False
True
6
Choose an advantage of being a sole trader from the following options.
owner keeps all the profit
it's easy to raise finance
ideas can be discussed with someone else
unlimited liability
7
The legal document required to set up a partnership is called
A deed of partnership
A contract of partnership
A partnership agreement
Articles of partnership
8
What is 'insolvency'?
The business can't make a decision
An indication that the business is performing well
A type of glue
When a company's assets are worth less than its liabilities
9
What is a 'merger'?
Two businesses join together to form a larger business
One business splits into two separate businesses
Two businesses agree to work together
One business buys another
10
Partnerships benefit from which of the following?
Each partner brings different skills to the business.
The business has a separate legal identity to the owners
Partners could argue making the business difficult to run
Limited liability
11
True or false: sole traders can't employ people to work for them
False
True
12
If a sole trader retires or dies the business ceases to exist. This means there is no:
Hope
Shareholders
Continuity
Profit
13
Companies are owned by shareholders: True of False?
True
False
14
Companies are owned by who?
The government
Foreigners
Shareholders
Other companies
15
All companies must have a 'board of directors'. What is it?
The people who take day to day decisions
People elected by shareholders to run the company.
A group of the largest shareholders
A piece of wood with pictures of the company's directors
16
What is 'bankruptcy'?
Liabilities are larger than assets
When the business gets a loan from a bank
The business is doing well
The business is unable to pay its debts
17
What is the meeting a PLC must hold each year?
AMG
GM
MAG
AGM
18
PLCs are differ from Ltds because
Their accounts have to be made public
All of the above
They can sell shares to any member of the public
Must have share capital in excess of £50,000
19
Which of the following is the best definition of 'incorporated'?
A business which has the same legal identity as its owners
A business with a different legal identity to its owners
A business owned by one person
A business which has unlimited liability
20
Sole traders pay coporation tax. True or false?
False
True
