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2-Ans - Business Structures Objective and Subjective Questions

The document provides information about different business structures. It discusses the key characteristics of private and public limited companies, including that shareholders have limited liability but the business and owner are separate entities. It also notes that sole proprietorships typically have unlimited liability since the business and owner are not separate. The document asks multiple choice and short answer questions about business sectors, examples of goods and services within each sector, advantages and disadvantages of different structures like sole traderships, and other concepts related to business organization.

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Vinetha Karunanithi
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134 views

2-Ans - Business Structures Objective and Subjective Questions

The document provides information about different business structures. It discusses the key characteristics of private and public limited companies, including that shareholders have limited liability but the business and owner are separate entities. It also notes that sole proprietorships typically have unlimited liability since the business and owner are not separate. The document asks multiple choice and short answer questions about business sectors, examples of goods and services within each sector, advantages and disadvantages of different structures like sole traderships, and other concepts related to business organization.

Uploaded by

Vinetha Karunanithi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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2 – Business Structures

Name :_______________ Date: ___________

From: Programming / Networking / Multimedia / Electronic Level : _________

PART 1 – OBJECTIVE QUESTIONS (5 marks)

1. Which of the following statement is incorrect of a private and public limited company?
A. Enjoys limited liability
B. Shareholders are not liable for any debts of the organisation
C. The business and the owner is the same entity
D. Shareholders only lose what they have invested

2. Which of the following would normally have an unlimited liability?

A. A limited partner in a limited partnership


B. A shareholder in a corporation
C. A member in a limited liability company
D. The owner of a sole proprietorship

4. Which of the following is an advantage of a public limited company but not for private
limited company.

A. Shares can be easily transferred


B. Enjoys limited liability
C. Control of the company is obtained by owning 51% if the shares
D. The company is owned by ordinary shareholders

5. Which of the following is an advantage of a public limited company.

A. Large amounts of capital can be raised


B. Easier to get loan from banks
C. Continuity of succession as the company is not affected by death of a member or
withdrawal of a director
D. All of the above

1
2 – Business Structures

PART 2 – Short answer and subjective questions (20 marks)

6. After completing their studies, Jane and Mary decided to set up a dental practice,
They operated as a partnership and invested equal sums of money.

I) Identify the sector of economy in which this business operates. (2 marks)

Answer: Tertiary Sector

7. Give 2 examples of each the following sectors : (6 marks)

I. Primary sector Answer: Coal, gold, coal,

II. Secondary sector Answer: Tables, Chairs, house,

III. Tertiary sector Answer: Insurance, Bank, restaurant, hospital

8. A less developed country has a high percentage in primary sector.

(2marks)

9. I) The Public Sector provides two type of goods which are called:

Public Goods and Merit Goods (2 marks)

II) Give 2 examples of each type. (2 marks)

Public Goods – Roads, highways, street lightings, police, army

Merit Goods – Hospital, library, museum

10. Despite the fact many sole traders fail in the first few years of operation, this type
of business still proves popular, Explain 2 advantages and 2 disadvantages of a
sole trader. (6 marks)

Advantages – Easy to set up and few legal procedures. All profits go to the owner.
Disadvantages – Unlimited liability which means if the business fails, the owner
may lose his/her personal assets. Longer working time and if he/she is ill, no one
to take care of the business.

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