Oxford AQA IGCSE · Business (9225)

Business ownership: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Business ownership.

10 questions25 marksFree, no account

Question 1

1 mark

A business that is owned and operated by one person who has full responsibility for all debts is known as a:

Question 2

1 mark

Which of the following best explains why a growing partnership might choose to convert into a private limited company?

Question 3

1 mark

In a mixed economy, which statement best distinguishes between private sector and public sector ownership?

Question 4

1 mark

Which of the following is a key characteristic of a not-for-profit organisation?

Question 5

1 mark

Which of the following best describes the concept of limited liability for the owners of a business?

Question 6

2 marks

Identify two benefits of limited liability for the owners of a private limited company.

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Question 7

3 marks

Explain how the legal concept of limited liability reduces the financial risk for the owners of a private limited company compared to a sole trader.

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Question 8

5 marks

Distinguish between the private sector and the public sector in a mixed economy by comparing their primary objectives regarding profit and service provision.

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Question 9

2 marks

Javed is planning to start a small gardening business. He is currently considering the best legal structure for his new venture.
a) Define the term sole trader.
b) Identify one advantage for Javed if he decides to operate as a partnership with a friend rather than as a sole trader.

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Question 10

8 marks

TechStart is a successful software development business currently operating as a partnership between two founders. The business is experiencing rapid growth and plans to expand its operations globally, which will require substantial external finance.

(a) Analyse two drawbacks of maintaining a partnership structure for TechStart given its need for substantial external finance and global expansion.

(b) Explain how converting to a private limited company would impact the owners' personal liability and their ability to raise finance.

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