Pearson Edexcel IGCSE · Commerce

Commercial enterprises: Practice Questions

5 multiple-choice questions marked as you go, and 3 written questions with worked solutions. All on Commercial enterprises.

8 questions17 marksFree, no account

Question 1

1 mark

A business owned and operated by one person who is personally responsible for all business debts is called a:

Question 2

1 mark

Which of the following is a key characteristic of a public sector enterprise?

Question 3

1 mark

When forming a limited company, which document is specifically required to set out the internal rules and regulations for the management of the company?

Question 4

1 mark

In a franchise agreement, what is the primary role of the franchisor?

Question 5

1 mark

In the context of a private limited company, what does the term limited liability imply for the owners?

Question 6

3 marks

State one difference between a sole trader and a partnership regarding the distribution of profit.

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

Question 7

6 marks

Assess how privatization typically changes the primary objectives of a commercial enterprise previously owned by the public sector.

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Question 8

3 marks

A partnership is a common form of business ownership in the private sector.

(a) State one document that is typically drawn up when forming a partnership. (1)
(b) Explain one major disadvantage of a partnership compared to a private limited company regarding the liability of owners. (2)

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

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