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Quiz on Sole traders, partnerships and franchises (chapter 3), created by marcela.leme on 10/12/2014.

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Sole traders, partnerships and franchises (chapter 3)

Question 1 of 10

1

Entrepreneurs have many responsibilities. They need to be innovators, risk takers, decision makers and have unlimited liability.

Select one of the following:

  • True
  • False

Explanation

Question 2 of 10

1

Being a sole trader can have many burdens, however there are advantages. Which one of these benefits the sole trader?
You may pick one or more.

Select one or more of the following:

  • Have limited liability

  • Simple to set up - no legal requirements

  • Can offer personal service

  • Can exploit economies of scale

  • May qualify for government help

Explanation

Question 3 of 10

1

Name three disadvantages of having a Partnership.

Select one or more of the following:

  • Financial information is not made public

  • Partners have unlimited liability.

  • Tend to be small businesses

  • No continuity

  • Profit is shared

Explanation

Question 4 of 10

1

In limited Partnerships both partners have limited liability

Select one of the following:

  • True
  • False

Explanation

Question 5 of 10

1

Which of these are advantages to the franchisee?
Pick one or more.

Select one or more of the following:

  • Cost of support may be high

  • Set-up costs are predictable

  • Back-up support is given

  • Fast method of growth

  • Strict contracts have to be signed

Explanation

Question 6 of 10

1

Which describes best an incorporated business?

Select one or more of the following:

  • businesses where there is no legal difference between the owner and the business

  • Where the business has separate legal identity from that of its owners

Explanation

Question 7 of 10

1

Which of these are disadvantages to the franchisor?
Pick one or more.

Select one or more of the following:

  • potential profit is shared with franchisee

  • Can be an expensive way to start a business

  • Poor franchisees may damage the brand’d reputation

  • Franchisees take most of the risk

Explanation

Question 8 of 10

1

Partnerships are strictly between 2 and 20 people

Select one of the following:

  • True
  • False

Explanation

Question 9 of 10

1

A franchisor is the owner who allows franchisees to operate under their name

Select one of the following:

  • True
  • False

Explanation

Question 10 of 10

1

Sole traders, partnerships and franchises all have limited liability.

Select one of the following:

  • True
  • False

Explanation