Cambridge IGCSE · Enterprise (0454)

Types of business organisation: Practice Questions

5 multiple-choice questions marked as you go, and 3 written questions with worked solutions. All on Types of business organisation.

8 questions16 marksFree, no account

Question 1

1 mark

Which of the following is a key characteristic of a sole trader business organisation?

Question 2

1 mark

Which of the following is a key advantage of forming a partnership compared to being a sole trader?

Question 3

1 mark

Maria wants to open a coffee shop but lacks experience in branding and supply chain management. She opts to open a branch of a well-known national coffee chain. What type of business organisation has Maria most likely chosen?

Question 4

1 mark

Which type of business organisation typically has unlimited liability for its owner(s)?

Question 5

1 mark

A group of friends decides to start a tech company, seeking significant investment from external shareholders and wishing to protect their personal assets from business debts. Which type of business organisation would best suit their requirements?

Question 6

2 marks

State one disadvantage of forming a limited company compared to being a sole trader for a small start-up.

Write your answer out first, then check it against the worked solution.

Question 7

3 marks

Explain one key advantage and one key disadvantage of operating a business as a sole trader.

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Question 8

6 marks

Compare the legal liability of a sole trader with that of a shareholder in a limited company.

Write your answer out first, then check it against the worked solution.

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