| Questions
on private sector businesses 2
Yvonne
Harvey, Contributor
 |
Herbert
Morrison Technical High School students walk towards their next class minutes
before the end of lunchtime. - Claudine Housen/Staff Photographer |
Greetings.
It is good to be communicating with you once again. This week is your multiple-choice
test on the businesses in the private sector of a mixed economy. You should attempt
ALL questions. The answers to the questions are at the end of the lesson. Resist
the temptation to look at them while you are doing the test. Ready? 1.
The advantages of a sole trader over a partnership form of business include which
of the following? i)
Profits are shared.
ii)
Risks are greater.
iii)
The sole trader is his or her own boss.
iv)
The partners can contribute capital to expand the business. A)
(i) and (ii) only
B)
(i) and (iii) only
C)
(iii) only
D)
(i) and (iv) only 2.
In a partnership, an investor is a partner. In a large company, an investor is
a: A)
sole trader.
B)
manager.
C)
director.
D)
shareholder. 3.
A sleeping partner is otherwise known as a: A)
careless partner.
B) active partner.
C) dormant partner.
D) general partner.
4. Which
of the following are disadvantages of a private limited company? i)
It has an independent legal status.
ii)
The firm cannot raise capital on the stock exchange.
iii)
The firm cannot have more than 50 shareholders.
iv)
The firm has too many taxes to pay. A)
(i) and (ii) only
B)
(ii) and (iii) only
C)
(i) and (iv) only
D)
(iii) and (iv) only 5.
To comply with legal requirements to register a private limited company, the firm
must provide at least two documents. These are: A)
a prospectus and a certificate of origin.
B)
a memorandum of association and articles of association.
C)
a certificate of trading and tax file number.
D)
a share certificate and a debenture certificate. 6.
Those partners who, when their business goes bankrupt, stand to lose all their
personal possessions as well as their investments are known as: A)
unlimited liability partners.
B)
limited liability partners.
C)
ordinary partners.
D)
sleeping partners. 7.
The form of business where shares are allowed to be sold only to owners of the
business or to their relatives or employees is known as: A)
partnership.
B)
private limited company.
C)
public limited company.
D)
multinational company. 8.
The main aim of a co-operative retail society is to: A)
make a profit from its member-customers.
B)
buy and sell goods retail.
C)
buy goods wholesale and sell them cheaply to its members.
D)
organise and plan the running of the society. 9.
Company A owns all these businesses: soft drink company, bakery, shipping company
and motor-car assembly company. Company A is an example of a: A)
conglomerate.
B) multinational.
C) private limited company.
D) partnership.
10.
If one company, A, has or owns the majority shares in another company, B, then
company A can best be regarded as being a: A)
holding company.
B)
partnership.
C)
co-operative.
D)
joint-stock company. Now
you can have a look at the answers to see how well you have done. | 1.
C | 2.
D | | 3.
C | 4.
B | | 5.
B | 6.
A | | 7.
B | 8.
C | | 9.
A | 10.
A |
Well,
we have now completed our study and test on the private sector businesses of a
mixed company. Next week, I will begin the discussion on the public sector businesses
of a mixed economy. See you then. Yvonne
Harvey teaches at Glenmuir High School. | 
