1.2 Types of Organizations

which of the statements is false -a private limited company cannot sell its shares on a stock exchange -second-hand shares of public companies can be traded on a stock market -public limited companies operate in the private sector -the BOD of a private limited company own the business

the BOD of a private limited company own the business

which of the following is not a non-profit social enterprise -amnesty international -habit for humanity -world wide fund for nature -IB organization

IB organization

which of the statements about shareholders is correct -an advantage for shareholders is having limited liability -as co-owners of a company, shareholders have equal voting rights -they own and control private and public limited companies -they are always paid dividends for investing in the company

an advantage for shareholders is limited liability

a public sector enterprise is -an organization owned by the state or government -an organization owned by private shareholders only -an organization owned by shareholders who can trade their shares on a stock exchange -any business that carries PLC after its name

an organization owned by the state or government

the shareholders of a company -are wealthier than sole traders or partners -earn a capital gain in their investment by selling their shares -control the running of the business -are legally entitled to a share of company profit

are legally entitles to a share of company profits

disadvantages of sole traders do not include -constraint of lack of time and specialization -a reliance on the efforts and liability of just one person -the demands of having to be multi skilled -autonomy in decision-making

autonomy in decision-making

which document is issued to a limited liability company before it can start trading -articles of association -certificate of incorporation -deed of partnership -memorandum of association

certificate of incorporation

which of the following is not classes as a social enterprise -public-private partnerships -microfinance providers -charities -consultancy services

consulting services

In comparison to other forms of business, sole proprietors face the problems -continuity -administration and set-up procedures -specialization -privacy of account

continuity

which of the following is a for-profit organization -charities -cooperatives -non-governmental organizations -state-owned enterprises

cooperatives

charities get there finance from different sources. Which of these options is the exception -donations -fund raising events -selling products -corporate tax refunds

corporate tax refunds

which of the following is least likely to be a disadvantage of a partnership -managing conflict and disagreements -having to share profits -dealing with different sources of finance -less control of business activities

dealing with different sources of finance

a public-private enterprise is set up in order to -earn profits as a social enterprise -replace the provision of certain services such as schools and hospitals -reduce the risks of share ownership

earn profits as a social enterprise

micro finance providers -empower entrepreneurs of small businesses -grant financial support to female entrepreneurs only -are a type of not-for-profit social enterprise -charge extremely high rates of interest for entrepreneurs who cannot use commercial banks

empower entrepreneurs of small businesses

A sole trader is a person who -forms a business with another single person -sets up the safest form of a business organization -is not legally liable for any debts of the business -has exclusive responsibility for the running of the business

has exclusive responsibility for the running of the business

'unincorporated' means that a business -has shareholders -has unlimited liability for its debts -is protected by limited liability -is a separate legal entity from its owners

has unlimited liability for its debts

a drawback of public limited companies is that they -represent high risks to investors -have limited liability -rely on government funding -have to publish certain financial information to all stakeholder

have to publish certain financial information to all stakeholders

what is the other name for a public limited company -joint stock company -private sector company -limited liability company -privately held company

joint stock companies

the legal document that sets out the constitution of a limited liability company is known as the -memorandum of association -articles of association -deed of incorporation -certificate of incorporation

memorandum of association

a non-profit organization that operates in the private sector and runs for the benefit of others in society is known as a -charity -not-for-profit organization -non-profit organization -non-governmental organization

non-governmental organization

identify the incorrect statements below -public companies operate in the public sector -silent partner is another name for a sleeping partner -a deed of partnership is advised for partnerships as it helps to resolve disagreements -shareholders are not personally liable for the debts of their businesses

public companies operate in the public sector

which of the following is least likely to be a non-profit organization -museums -performing art groups -public transport firms -police force

public transport firms

Which of the following is not a necessary condition for an ordinary partnership -signing the contents of a partnership deed -have between 2 to 20 partners -have at least one partner with unlimited liability -shares cannot be issued by the business

signing the contents of a partnership deed

which of the following is an example of public (sector) expenditure -investment by public limited companies -donations made to charities and non profit organizations - spending on state education and health care -spending by general public on company stocks and shares

spending on state education and health care

a memorandum of association is -states the main purpose of a company -sets out rules for the appointment and remuneration of directors -shows how profits will be distributed to its owners -stipulates the internal functions and rules of an organization

states the main purpose of a company

Which of these factors is least likely to affect the strategic choice of the most appropriate type of business -amount of finance needed -the products being sold -whether owners and investors want limited liability -the size of the business and scale of its operations

the products being sold

advantages of sole traders do not include -a high degree of confidentiality and administration and financial reporting -flexibility and freedom in decision making -profits not having to be shared with others -the various sources of finance available

the various sources of finance available

which of the following is not a reason why people may choose to set up their own business? -there are higher risks than working for someone else -there is a lack of employment opportunities -the enjoy autonomy in decision making -to extend personal interests and hobbies

there are higher risks than working for someone else

Which statement does not apply to a sole trader -it is the most common type of ownership -there can be more than one employer -a business that is owned by one person -there may be more than one employee

there can be more than one employer

which statement does not apply to charities -they are a type of not-for-profit organization -they promote and raise money for good causes -they are private sector businesses -they are registered as incorporated businesses

they are registered as incorporated businesses