Business Management

Question 1

1Limited liability means that

Easy

A. profits are not shared B. the business cannot borrow C. owners lose all their personal property D. owners can lose only the amount they invested

Question 2

2A disadvantage of a sole proprietorship is

Easy

A. personal contact with customers B. unlimited liability C. quick decisions D. keeping all profits

Question 3

3Which is an advantage of a sole proprietorship?

Easy

A. continuity after death B. limited liability C. the owner keeps all the profit D. unlimited capital

Question 4

4The document that sets out the internal rules of a company is the

Medium

A. receipt B. delivery note C. invoice D. articles of association (company constitution)

Question 5

5A holding company is one that

Hard

A. sells holdings B. only holds cash C. controls other companies by owning a majority of their shares D. is a bank

Question 6

6A co-operative society is run on the principle of

Easy

A. no meetings B. one share, one vote C. one member, one vote D. rule by the manager

Question 7

7The divorce of ownership from control occurs mainly in

Hard

A. family businesses B. sole proprietorships C. public limited companies D. small partnerships

Question 8

8A partnership is usually formed by

Easy

A. over 100 people only B. one person C. the government D. two to twenty people

Question 9

9A business owned and run by one person is a

Easy

A. partnership B. sole proprietorship C. co-operative D. public limited company

Question 10

10A business owned and managed by members for their mutual benefit is a

Easy

A. franchise B. public corporation C. sole proprietorship D. cooperative society