Day: February 28, 2018

Business Studies Multiple Choice Question – 28 February 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which ONE of the following is a true statement about private limited companies (Ltd’s)?

Choose ONE answer only:

  1. They are not owned by shareholders
  2. They have to have at least two directors
  3. They do not have a separate legal identity from the business’s owners
  4. The owners have limited liability
  5. They do not have to pay corporation tax

Explain one disadvantage to a business of having limited liability?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 4 – A private limited company has to have at least one director. Private limited companies have a separate legal identity to the business’s owners (called shareholders) and are subject to corporation tax, which is a tax on company profits.

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