18 Questions
What is a major disadvantage of a sole proprietorship?
Unlimited liability
In a partnership, how are profits typically divided?
Equally between partners
What is a key advantage of a private limited company?
Limited liability
What happens when a partner leaves a partnership?
The partnership is automatically dissolved
Who owns a private limited company?
The shareholders
Why might a partnership be suitable for professionals such as surveyors or architects?
It is more common among professionals
What is the key characteristic of a co-operative?
It is a democratically run business where members have shared ownership.
What is a key benefit for the franchiser in a franchising arrangement?
The franchiser gets financial returns for little drain on resources.
What is a key advantage for the franchisee in a franchising arrangement?
The franchisee benefits from a ready-made business idea.
What is a key difference between a private limited company and a public limited company?
A private limited company has limited liability, while a public limited company has unlimited liability.
What is a key disadvantage for the franchisee in a franchising arrangement?
The franchisee has to pay significant upfront costs.
What is a key characteristic of a merit good?
It is a type of good that is used by the population when needed.
What is the primary characteristic of a sole proprietorship?
A single person owning and operating the business
What is a key disadvantage of sole proprietorship?
The owner must perform all tasks
What is the primary advantage of a private limited company over a sole proprietorship?
Limited liability for owners
What is the key difference between a public limited company and a private limited company?
The ability to issue public shares
What is the primary characteristic of a franchise business model?
A business model where one party grants another party the right to operate a business
What is the primary advantage of a partnership over a sole proprietorship?
Shared ownership and liability
This quiz covers the concept of co-operatives, a democratically run business with shared ownership, and merit goods, which are used by the population when needed, such as health services and education. Learn about the characteristics of co-operatives and how they operate.
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