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Multiple
choice test on private sector businesses
Yvonne
Harvey, Contributor
Hello
again. This test should be done before
looking at the answers at the end.
Ready? Good.
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Revising
notes is a critical part of
education.
-Anthony
Minott Freelance photographer
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1.
The advantage of a sole trader over
a partnership form of business includes
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 a 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. Those shareholders in a company
who have no voting rights at an annual
general meeting are known as:
(A)
ordinary shareholders
(B)
preference shareholders
(C)
sleeping partners
(D)
managers
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 the employees is known as:
(A)
partnership
(B)
private limited company
(C)
public limited company
(D)
multinational company
8. The main aim of a cooperative 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:
a soft drink company, a bakery, a
shipping company and a motor-car assembly
company. Company A is an example of
a
(A)
conglomerate
(B)
multinational corporation
(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)
cooperative
(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 economy. 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. | 
