Lesson 1.4.1b
1.4.1b Sole trader, partnership and private limited company Quiz: Pearson Edexcel Business, Unit 4
20 questions
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Lesson 1.4.1b, Sole trader, partnership and private limited company: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 4: Making the business effective, written with Revision Ninja.
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The 20 questions
-
Which type of business ownership has a single owner who keeps all profits and bears all losses?
- Public limited company
- Sole trader
- Private limited company
- Partnership
-
How many owners typically form a standard UK business partnership?
- Two to twenty
- Fifty to one hundred
- One to five
- Exactly one
-
Which business type cannot sell shares to the general public?
- Private limited company
- Public limited company
- Worker cooperative
- Sole trader
-
What is a key advantage of operating as a sole trader?
- Limited liability
- Shared workload
- Total control
- Easy finance
-
Which of these is a key disadvantage often faced by a business partnership?
- Unlimited liability
- Strict stock rules
- Fixed dividends
- High corporation tax
-
A business has three partners who each put in £20,000. What is the total capital invested?
- £40,000
- £60,000
- £20,000
- £80,000
-
Which business type is most likely to suit a small local business that wants limited liability and cannot sell shares to the public?
- Sole trader
- Private limited company
- Public limited company
- Partnership
-
What does the abbreviation 'Ltd' at the end of a company name indicate?
- Public limited company
- Sole trader business
- Worker cooperative
- Private limited company
-
What is a major financial limitation faced by a sole trader expanding a business?
- Paying corporate tax
- Paying dividends
- Issuing public shares
- Raising large finance
-
Which advantage does a private limited company have over a standard partnership?
- Limited liability
- Exemption from tax
- Automatic grants
- No legal costs
-
Which of these is a distinct legal feature of a private limited company?
- Personal ownership
- Separate legal entity
- Unlimited liability
- Shared partnership
-
What is a major personal risk for partners when a partnership cannot pay its debts?
- Business closure tax
- Unlimited liability
- Share confiscation
- Loss of dividends
-
Which business type provides limited liability while allowing the owner to retain control?
- Private limited company
- Public limited company
- Worker cooperative
- Sole trader
-
What term describes an owner of a private limited company who has protected personal assets?
- Franchisee
- General partner
- Sole trader
- Shareholder
-
Which of these is a major drawback of setting up as a sole trader?
- Complex auditing
- Unlimited liability
- Corporation tax
- Shared decision making
-
Which business type has the least formal legal and administrative requirements to set up?
- Private limited company
- Franchise company
- Sole trader
- Public limited company
-
Three friends set up a business together and share profits and decisions. Which business type is this?
- Partnership
- Charity
- Private limited company
- Sole trader
-
Which administrative requirement makes a private limited company harder to set up than a sole trader?
- Stock market flotation
- Mandatory franchising
- Companies House registration
- Trade union approval
-
A sole trader's profit is £40,000 and she pays £8,000 personal tax on it. What is the figure she keeps after tax on this profit?
- £40,000
- £32,000
- £8,000
- £48,000
-
Which legal characteristic is shared by both sole traders and general partnerships?
- Board of directors
- Separate legal identity
- Share capital
- Unlimited liability
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