Types of Ownership

Question 1

Does a Sole Trader have Limited or Unlimited Liability?

Accepted Answer

Unlimited

Question 2

Privately and Publicly Held Companies are owned by directors but run by the board of shareholders.

Accepted Answer

False

Question 3

Which of the following is an advantage of a partnership

Accepted Answer

Shared Responsibility and expertise

Question 4

This type of business can have an unlimited number of owners...

Accepted Answer

Publicly Held Company

Question 5

This type of business legally must publish its financial accounts for the general public to see

Accepted Answer

Publicly Held Company

Question 6

Which ownership is most risky for the owners personal money and belongings?

Accepted Answer

Sole Trader

Question 7

Both Privately and Publicly Held Companies enjoy continuity even if majority shareholders die.

Accepted Answer

True

Question 8

If a limited liability company fails then the shareholders will only lose the amount they invested

Accepted Answer

True

Question 9

Publicly held Companies find it easier to raise finance that other types of businesses.

Accepted Answer

True

Question 10

Publicly Held Companies must publish their financial accounts every year.

Accepted Answer

True

Question 11

A Privately Held Company can only sell shares to....?

Accepted Answer

Friends and Family

Question 12

Sole Traders, Partnerships, Privately Held and Publicly Held Companies are all in the Private Sector.

Accepted Answer

True

Question 13

Shareholders are involved in the day to day running of the business

Accepted Answer

False

Question 14

Publicly Held Companies are more at risk of a hostile takeover

Accepted Answer

True

Question 15

Privately Held Companies DO NOT need to publish their financial accounts each year.

Accepted Answer

True

Question 16

There is a risk of losing control of the business once you offer an IPO.

Accepted Answer

True

Question 17

Where it&#x27;s possible to lose your personal belonging to pay off a debt

Accepted Answer

Unlimited Liability

Question 18

If a business has a &#x27;separate legal identity&#x27; then it must have...

Accepted Answer

Limited Liability

Question 19

What type of limited company can sell shares on the stock market?

Accepted Answer

Publicly Held Company

Question 20

Privately Held Companies are cheaper to run than sole traders

Accepted Answer

False

Question 21

Publicly Held Companies are the most expensive types of company to run.

Accepted Answer

True

Question 22

Which of the following is an advantage of being a Sole Trader?

Accepted Answer

Keep all profits

Question 23

Which of the following is in the PUBLIC SECTOR owned?

Accepted Answer

NHS

Question 24

A Sole Trader will find it easy to get a bank loan

Accepted Answer

False

Question 25

For each share you own in a limited liability company you get one vote in the AGM in major strategic decisions.

Accepted Answer

True

Question 26

A Publicly Held Company is owned and run by the government

Accepted Answer

False

Question 27

Sole Traders and Partnerships enjoy Limited Liability

Accepted Answer

False

Question 28

Privately Held Companies sell their shares on the stock exchange

Accepted Answer

False

Question 29

What does IPO stand for?

Accepted Answer

Initial Public Offering

Question 30

Silent Partners are involved in the day to day running of the business

Accepted Answer

False

Types of Ownership

Questions 30

Types of Ownership

Questions 30