Legal Structures Quiz

44 questions

Legal Structures Quiz is a free 44-question multiple choice, letters and numbers quiz on Qwiz Rush, split into 3 rounds.

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Every question runs on a 10-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 44 questions

  1. Who owns and runs a sole trader business?

    • Exactly two people
    • One person
    • A group of shareholders
    • A board of directors

  2. What type of liability do sole traders and general partners have for business debts?

    • Limited liability
    • Unlimited liability
    • Shared corporate liability
    • No liability

  3. Which legal document is highly recommended to prevent disputes between business partners?

    • Certificate of Incorporation
    • Articles of Association
    • Shareholder Agreement
    • Partnership Deed

  4. If a sole trader business goes bankrupt, who is personally responsible for paying the debts?

    • The local government
    • The customers
    • The bank
    • The sole trader

  5. What is considered a major advantage of operating as a sole trader?

    • It is easy and inexpensive to set up
    • The owner has limited personal liability
    • Capital can be raised by selling shares
    • The workload is automatically shared

  6. What is the minimum number of owners required to form a partnership?

    Answer with a number.

  7. How many people own and run a sole trader business?

    Answer with a number.

  8. If two partners agree to share all business profits equally, what percentage of the profit does each partner receive?

    Answer with a number.

  9. Historically, what was the standard maximum number of partners allowed in a general partnership in many jurisdictions?

    Answer with a number.

  10. If a partnership of four people does not have a written agreement, into how many equal shares is the profit split under standard partnership law?

    Answer with a number.

  11. What is the legal term for a business structure where two or more people share costs, profits, and responsibilities?

    Answer with a letter.

  12. What is the term for the legal status where business owners are personally liable for all debts of the business?

    Answer with a letter.

  13. What is the term used to describe a partner who invests money into a business but does not take an active role in its daily management?

    Answer with a letter.

  14. What is the name of the government department in the UK that sole traders must register with to pay their taxes?

    Answer with a letter.

  15. What is the term for the financial investment or money that an owner puts into a business to get it started?

    Answer with a letter.

  16. What is the term for the person or company that buys the right to run a business under a franchise's name?

    • Co-operator
    • Franchisee
    • Shareholder
    • Franchisor

  17. In a co-operative, who typically owns and controls the business?

    • The members who use its services
    • A single wealthy founder
    • The government
    • Outside investors

  18. What is the initial fee paid to a franchise owner to start using their brand called?

    • Royalty fee
    • Franchise fee
    • Dividend
    • Membership share

  19. Which of these is a famous global example of a fast-food franchise?

    • McDonald's
    • NASA
    • Red Cross
    • Wikipedia

  20. How are primary decisions typically voted on in a co-operative?

    • One vote per share of stock
    • One vote per member
    • Only the CEO decides
    • By government decree

  21. In a standard democratic co-operative, how many votes does each individual member get, regardless of their financial investment?

    Answer with a number.

  22. According to the internationally accepted Rochdale Principles, how many core principles traditionally guide co-operatives?

    Answer with a number.

  23. If a franchisee owns exactly one location of a store, how many total physical franchise units do they run?

    Answer with a number.

  24. To form a co-operative in many jurisdictions, what is the absolute minimum number of people usually required by basic cooperative laws?

    Answer with a number.

  25. What percentage of voting power does a member of a co-operative have if there are exactly one hundred members who each get one vote?

    Answer with a number.

  26. What is the title given to the parent company or individual that grants the license to run a franchise?

    Answer with a letter.

  27. What is the term for the regular, ongoing payments made by a franchisee to the franchisor, usually representing a percentage of sales?

    Answer with a letter.

  28. Which agricultural co-operative brand, famous for its ocean-themed name, is one of the largest cranberry growers' co-ops in the world?

    Answer with a letter.

  29. What is the name of the legal contract that binds the franchisor and the franchisee together?

    Answer with a letter.

  30. What is the term for the portion of a co-operative's surplus earnings returned to its members based on their usage?

    Answer with a letter.

  31. What does the abbreviation "Ltd" stand for in a company name?

    • Legacy
    • Licensed
    • Limited
    • Latitude

  32. Which type of company can sell its shares to the general public on a stock exchange?

    • Sole trader
    • Partnership
    • Private Limited Company (Ltd)
    • Public Limited Company (Plc)

  33. What does the abbreviation "Plc" stand for?

    • Private Local Company
    • Public Licensed Corporation
    • Private Limited Corporation
    • Public Limited Company

  34. In both Ltd and Plc companies, what does "limited liability" protect from business debts?

    • The shareholders' personal assets
    • The company's bank accounts
    • The customers' deposits
    • The government's tax revenue

  35. Who is responsible for the day-to-day management of a limited company?

    • Shareholders
    • Directors
    • Customers
    • Auditors

  36. In the UK, what is the minimum number of shareholders required to set up a Private Limited Company (Ltd)?

    Answer with a number.

  37. In the UK, what is the minimum number of directors required to run a Public Limited Company (Plc)?

    Answer with a number.

  38. In the UK, what is the minimum number of shareholders required to form a Public Limited Company (Plc)?

    Answer with a number.

  39. To register as a Plc in the UK, what is the minimum share capital requirement in thousands of pounds sterling?

    Answer with a number.

  40. In the UK, what is the minimum number of directors required to start a Private Limited Company (Ltd)?

    Answer with a number.

  41. What is the official term for the owners of a limited company who hold its shares?

    Answer with a letter.

  42. What is the name of the official UK government registry where all Ltd and Plc companies must be registered?

    Answer with a letter.

  43. What portion of a company's profits is paid out to its shareholders?

    Answer with a letter.

  44. What is the primary legal document that registers a company's existence, containing its name and registered office?

    Answer with a letter.