Forms of business and shares: Practice Questions

What is the primary feature of a social enterprise?

A public limited company has \(15\text{ million}\) shares issued. Its current share price on the stock exchange is \(£2.40\). What is the market capitalisation of the company?

A manufacturing company with \(5\text{ million}\) ordinary shares in issue experiences an increase in its share price from \(£2.40\) to \(£3.00\). During the same financial period, the annual dividend per share was held constant at \(£0.12\).
What are the percentage change in the company's market capitalisation and the new dividend yield?

Which of the following is classified as an external stakeholder of a business?

Which of the following describes a key legal distinction between a sole trader and a private limited company (Ltd)?

A public limited company has issued \( 5,000,000 \) ordinary shares. The current market price per share is \( £3.20 \). Calculate the market capitalisation of the company.

A company's shares trade at \( £4.00 \) each, and it paid an annual dividend of \( £0.24 \) per share. Calculate the dividend yield.

An entrepreneur is currently operating as a sole trader and is evaluating whether to incorporate as a private limited company (Ltd).

(a) State the difference in liability between a sole trader and the shareholders of a private limited company.
(b) Explain one reason why unincorporated sole traders face greater financial risk than incorporated limited companies.
(c) Explain one disadvantage to an entrepreneur of changing legal status from a sole trader to a private limited company (Ltd).
(d) Define what is meant by a social enterprise in terms of its business objectives.