Lesson 1.5.4
1.5.4 Forms of business Quiz: Pearson Edexcel Business, Unit 1
20 questions
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Lesson 1.5.4, Forms of business: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 1: Marketing and people, written with Revision Ninja.
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The 20 questions
-
Which form of business has unlimited liability and no separate legal identity from its owner?
- Private limited company
- Sole trader
- Public limited company
- Limited liability partnership
-
Which business form can sell shares to the public on a stock market?
- Sole trader
- Partnership
- Public limited company
- Private limited company
-
Which feature protects shareholders of a private limited company from business debts?
- Total privacy
- Unlimited liability
- Limited liability
- Unincorporated status
-
What type of liability do partners in an ordinary partnership usually have?
- Shared liability
- Limited liability
- Unlimited liability
- Corporate liability
-
What business model involves licensing a proven brand name and system to independent operators?
- Franchising
- Social enterprise
- Private limited company
- Joint venture
-
What is the primary objective of a lifestyle business?
- Owner's preferred lifestyle
- Stock market flotation
- Maximum market share
- Rapid profit growth
-
Which benefit does a franchisee gain by operating under an established franchisor?
- Total profit retention
- Zero initial investment
- Reduced business risk
- Complete operational independence
-
Where do social enterprises primarily reinvest their surplus profits?
- Stock market reserves
- Executive bonuses
- Shareholder dividends
- Social objectives
-
A business owner wants to sell shares to raise large amounts of capital for growth. Which form is most suitable?
- Lifestyle business
- General partnership
- Sole trader
- Public limited company
-
What is a key advantage of operating as a sole trader?
- Easy equity funding
- Keeping all profits
- Limited liability
- Shared financial risk
-
What is a major disadvantage of an ordinary partnership compared to a Ltd?
- Complex setup procedures
- Shared decision-making
- Unlimited liability
- Limited liability
-
What is a key benefit of operating a business purely online from home?
- Unlimited market share
- Guaranteed profit margins
- Limited liability status
- Lower fixed overheads
-
What process allows a private limited company to sell shares to the general public?
- Stock market flotation
- Management buyout
- Franchise expansion
- Debt factoring
-
Why might a sole trader convert their business into a private limited company?
- Reduce government regulation
- Avoid filing accounts
- Gain limited liability
- Retain all profits
-
Which business form is set up primarily to suit the personal preferences of its owner?
- Franchise network
- Social enterprise
- Public limited company
- Lifestyle business
-
What is a primary financial benefit of a business partnership?
- Sole ownership
- Pooled capital
- Guaranteed profits
- Limited liability
-
How do social enterprises differ from typical private sector businesses?
- Reinvesting profit socially
- Operating without costs
- Avoiding commercial trading
- Paying maximum dividends
-
A business owner says: I want to sell my product through a licensed network of owners using my brand. Which form does this suggest?
- Partnership
- Franchising
- Sole trader
- Lifestyle business
-
What protection does limited liability offer company shareholders?
- Protected personal assets
- Guaranteed dividends
- Exemption from debt
- Tax exemption
-
Which form of business is owned by shareholders with limited liability but cannot offer its shares to the public?
- Partnership
- Private limited company
- Public limited company
- Sole trader
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