Business Studies Multiple Choice Question – 5 June 2019

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

 

LucyArts Ltd is an art shop in Stafford.

Which ONE of the following is a reason why Lucy set up LucyArts Ltd as a private limited company?

Select ONE answer:

  1. would have unlimited liability
  2. could guarantee that the business would make a profit
  3. would only lose the amount she invested if the business fails
  4. could raise money on the stock exchange

 

Show the workings to arrive at your answer, and explain and justify your reasons:

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

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 3

  1. becoming private gives you limited liability which is better than unlimited.
  2. does not guarantee that the business makes a profit.
  3. Correct – she would only lose the amount invested so an advantage.
  4. private limited cannot raise money on the stock exchange.

 

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