Lesson 1.3.1
1.3.1 Types of business Quiz: OCR Business, Unit 1
20 questions
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Lesson 1.3.1, Types of business: 20 multiple choice questions for the OCR Business (H431), Unit 1: Introduction to Business, written with Revision Ninja.
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The 20 questions
-
Which business structure leaves the owner personally responsible for all debts incurred by the business?
- Public limited company
- Sole trader
- Limited liability partnership
- Private limited company
-
What legal concept protects shareholders from losing more money than they invested in a company?
- Joint liability
- Vicarious liability
- Unlimited liability
- Limited liability
-
What term describes the business that sells the rights to use its brand name and model?
- Franchisor
- Co-operative
- Sole trader
- Franchisee
-
What is created when two separate businesses set up a third joint legal entity together?
- Merger
- Joint venture
- Strategic alliance
- Takeover
-
Which arrangement involves businesses collaborating without forming a separate legal entity?
- Public limited company
- Strategic alliance
- Joint venture
- Partnership
-
Which business model is owned and run democratically by its members for mutual benefit?
- Franchise
- Co-operative
- Private limited company
- Public limited company
-
Which business function is directly responsible for managing cash flow, budgeting, and financial reporting?
- Operations management
- Human resources
- Sales and marketing
- Accounting and finance
-
What type of business operates facilities and sells products in multiple different countries?
- Multinational business
- Local business
- Franchisee
- National business
-
Which legal structure best suits Sarah if she wants full control and all remaining profits?
- Partnership
- Public limited company
- Sole trader
- Private limited company
-
Which legal structure offers limited liability to partners while retaining traditional partnership management?
- Public limited company
- Sole trader
- General partnership
- Limited liability partnership
-
What legal structure must an Ltd convert to in order to sell shares publicly?
- Public limited company
- Sole trader
- Limited liability partnership
- Partnership
-
According to standard UK classifications, what is the maximum employee count for a medium enterprise?
- 9 employees
- 499 employees
- 249 employees
- 49 employees
-
What is an entrepreneur who buys the right to operate a local branch of a brand?
- Franchisor
- Franchisee
- General partner
- Shareholder
-
Which measure of business size avoids distortions caused by differing capital intensity between firms?
- Physical floor space
- Market capitalisation
- Employee numbers
- Board size
-
Which business function is responsible for converting raw inputs into finished output efficiently?
- Marketing
- Operations management
- Accounting and finance
- Customer service
-
What benefit do creditors experience when a sole trader incorporates into a private limited company?
- Guaranteed debt payment
- Unlimited liability access
- Greater financial transparency
- Direct share options
-
Which major disadvantage do public limited companies face compared to private limited companies?
- Unlimited personal liability
- Hostile takeover risk
- Strict profit caps
- Share issue restrictions
-
How are voting rights allocated among members inside a standard consumer co-operative?
- Spending-based votes
- One vote each
- One share vote
- Executive control only
-
Why might two technology firms prefer a strategic alliance over creating a joint venture?
- Guaranteed total control
- Shared equity distribution
- Complete legal merger
- Lower capital commitment
-
Why might existing company shareholders object to issuing new equity shares to expand?
- Higher dividend taxation
- Dilution of ownership
- Increased financial liability
- Immediate bankruptcy risk
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