Our team has conducted extensive research to compile a set of Forms Of Business Organization MCQs. We encourage you to test your Forms Of Business Organization knowledge by answering these multiple-choice questions provided below.
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A. The business only employs one person
B. The business is owned by one person
C. The firm has a single customer
D. There is a single firm in the industry.
A. Owners have limited liability
B. Shares can be sold to raise capital
C. Decisions and responsibilities can be shared
D. The owner has independence
A. Capital is limited to the owner’s savings and bank loans
B. Decisions take too long to make
C. As they are government-owned there is no profit motive
D. The owners may disagree.
A. All partners always have limited liability
B. Shares can be sold on the Stock Exchange
C. The business survives the death of the partners
D. The business has access to more capital than a sole trader.
A. Shares can be issued to raise capital.
B. Shares can be bought and sold on the Stock Exchange.
C. All owners of the business have limited liability.
D. The business continues after the death of shareholders.
A. It is owned by the government and is in the public sector.
B. It is owned by shareholders who can sell their shares on the Stock Exchange.
C. It is quick and easy to set up with few legal formalities.
D. Its accounts can be kept private, and it receives little coverage in the business
A. They do not want to remain in the private sector
B. They want to gain the benefits of limited liability
C. They want to keep the annual accounts secret
D. They want to raise additional capital to expand the business.
A. There can be a loss of control by the original owners as additional shares are sold
B. Firms in the public sector are often less efficient
C. If the company were to fail, the shareholders could lose all of their assets
D. Workers have to be asked for their opinions before major decisions are taken.
A. They are owned and controlled by the workers.
B. They are owned by the directors but controlled by the shareholders.
C. They are owned by shareholders but controlled by directors.
D. They are owned and controlled by the government.
A. All co-operatives are only concerned with retailing.
B. Profits are shared equally amongst members.
C. They are owned by shareholders.
D. Workers have no say in decision-making.
A. It is always much cheaper than setting up a new business venture
B. There is complete control over important decisions
C. The business can use its own name in advertisements
D. The risks of failure are lower as it is buying a well-known business idea.
A. The business can expand more quickly
B. The franchisor owns all of the shops
C. The businesses buying the franchises are certain to be successful
D. The products sold in each shop will be different.
A. Expanding a business to all parts of the country
B. When the government buys all of the assets of a private sector business
C. When a private limited company applies to become a public limited company
D. Opening a new division of the business in another country to become a multinational.
A. The costs of a new project can be split between the companies involved
B. Manufacturing costs will be divided between the firms in the venture
C. Joint ventures between firms in different countries can create new market opportunities
D. Management of the joint venture will never lead to disagreements
A. In cases where monopolies are likely to occur, public corporations will be best for consumers
B. In declining industries, public corporations, with government subsidies, would attempt to avoid job losses
C. By aiming to maximize profits, public corporations will always make money for the government
D. A public corporation television service could make non-profitable programs.
A. It requires one particular Internet browser
B. It is usually downloaded to a computer hard drive
C. It has a complex user interface
D. It can usually be synced to a handheld device
A. Favorable tax treatment
B. Limited liability
C. Unlimited life
D. Expanded financial capacity
A. Micro cultures.
B. Intracultures.
C. Counter cultures.
D. Subcultures
A. The cost of hiring new employees increases
B. Products can be customized more to respond to customers’ needs
C. The time needed to develop new products increases
D. Each participating company can focus on its subpar products as well