Chapter 19 Self-test questions

. Which one of the following statements is correct?

A sole trader has a separate legal personality when running the business.

A sole trader cannot take on employees.

A sole trader has unlimited liability for the debts of the business.

A sole trader must register his business before he can start trading.

. Which one of the following statements is incorrect?

For a partnership to exist the partners must sign a written partnership agreement.

A partnership automatically comes into existence when two or more people set up in business with a view to making a profit.

Partners are jointly and severally liable for the debts of the business from their own personal assets.

The profits from a partnership will be shared between the partners.

. A private company will have which one of the following suffixes after its name?

plc

Ltd

LLP

There is no need for anything to appear after the name of a private company.

. Which one of the following statements is correct?

The shareholders of a private limited company will always be the directors of the company.

The shareholders of a private limited company can never be the directors of the company.

The shareholders of a private limited company take the day-to-day decisions about the running of the company.

The shareholders of a private limited company do not take part in the day-to-day running of the company.

. Which one of the following statements is correct?

A public company (plc) can offer its shares to the public.

A public company (plc) must be listed on a stock exchange.

A public company (plc) is a company which is owned by the government.

Most companies in the UK are public companies (plcs)

. What percentage of businesses within the UK are within the Department for Business, Energy and Industrial Strategy definition of a micro enterprise or a small and medium sized enterprise (SME)?

25%

50%

75%

99.9%

. Which one of the following activities would fall within the tertiary economic sector?

Medicine.

Farming.

Research.

Construction.

. Which one of the following is not a consumer protection measure under the Consumer Rights Act 2015?

Goods sold to consumers must match any description given.

Goods sold to consumers must not be overpriced.

Goods sold to consumers must be of satisfactory quality.

Services provided to consumers must be carried out with reasonable care and skill.

. Which one of the following terms best describes the position where two or more businesses join forces to dominate a particular market?

A cartel.

A monopoly.

An oligopoly.

An anti-competitive practice.

. When conducting a SWOT analysis on an organisation, which one of the following will not be considered?

The internal strengths of the organisation.

The internal weaknesses of the organisation.

The internal opportunities available to the organisation.

The external opportunities available to the organisation.

The external threats facing the organisation.

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