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Quick Quiz -Limited Liability Companies-

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18tanjunga
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Chapter 4 (Edexcel International Business Studies)

Chapter 4 (Edexcel International Business Studies)

Question 1 of 10

1

What is the term used for "Private Limited Companies"

Select one of the following:

  • PLC

  • LTD

Explanation

Question 2 of 10

1

What are the 2 advantages of Limited Liability Companies

Select one or more of the following:

  • More capital can be raised

  • May be able to dominate the market

  • Business will continue if a shareholder dies

  • Shares can be bought and sold easily

Explanation

Question 3 of 10

1

What is meant by the term "Limited Liability"

Select one of the following:

  • Owners have to pay the debts with their own money

  • Owners does not have to pay debts with their own money

Explanation

Question 4 of 10

1

What makes a 'Going Public' process expensive

Select one of the following:

  • There are advertising and administrative expenses

  • Companies has to be big enough to be a public company and it requires money

Explanation

Question 5 of 10

1

What are the 2 disadvantages of Public Limited Companies

Select one or more of the following:

  • Setting up costs can be very expensive

  • More regulatory control due to Company Acts.

  • Profits have to be shared between more members

  • Takes time to transfer shares to new owner

Explanation

Question 6 of 10

1

What is a 'Joint Venture'

Select one of the following:

  • Two or more companies share the costs and responsibilty

  • Two or more companies merge both of the company's share

Explanation

Question 7 of 10

1

What are the disadvantages of 'Joint Venture'

Select one or more of the following:

  • Disagreement may occur about the management

  • They have to split the profit between investor

  • Takeovers are very expensive

Explanation

Question 8 of 10

1

What are the advantages of Joint Venture

Select one or more of the following:

  • Competitions may be eliminated

  • Each business can specialize in their own aspects

  • Joint Venture have low chance of succeeding

Explanation

Question 9 of 10

1

Which one is a Public limited company

Select one of the following:

  • Facebook

  • AMC (TV company)

Explanation

Question 10 of 10

1

What does 'Flotation' means

Select one of the following:

  • The process of 'Going Public'

  • The value of the share increases

Explanation

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