IB Business | Unit 1.2 Types of Organizations

Question 1

Charities get their finance form different sources. Which of these options is the exception?

Accepted Answer

Corporate tax refunds

Question 2

Limited liability means that if a firm can't pay back debts, the owners can lose everything

Accepted Answer

False

Question 3

The liability of shareholders is limited to the amount of their investment

Accepted Answer

True

Question 4

State-owned enterprises are also known as public companies

Accepted Answer

False

Question 5

Public companies are examples of private sector businesses

Accepted Answer

True

Question 6

A stock exchange represents the market where secondhand shares can be bought and sold

Accepted Answer

True

Question 7

A public limited company can advertise its shares and have them quoted on a stock exchange

Accepted Answer

True

Question 8

Which of the following is least likely to be a non-profit organization?

Accepted Answer

Public transport firms

Question 9

'Unincorporated' means that a business...

Accepted Answer

Has unlimited liability for its debts

Question 10

A non-for-proifit organization is any business that does not primarily aim to make a profit

Accepted Answer

True

Question 11

Disadvantages of sole traders do not include...

Accepted Answer

Autonomy in decision-making

Question 12

Social enterprises do not strive to make a profit

Accepted Answer

False

Question 13

Which of the following is a for-profit organization?

Accepted Answer

Cooperatives

Question 14

A Memorandum of Association...

Accepted Answer

States the main purpose of a company

Question 15

In comparison to other forms of business, sole proprietors face the problem of...

Accepted Answer

Continuity

Question 16

Microfinance providers...

Accepted Answer

Empower entrepreneurs of small businesses

Question 17

Which of the following is not classed as a social enterprise?

Accepted Answer

Consultancy services

Question 18

Microfinance providers are examples of social enterprises

Accepted Answer

True

Question 19

All non-governmental organizations (NGOs) operate in the private sector

Accepted Answer

True

Question 20

What is the other name for a Public Limited Company?

Accepted Answer

Joint stock company

Questions 20