IB Docs (2) Team
1.2 Types of organizations - Question bank
Unit 1.2 Types of organizations - Question Bank
Test your understanding of this topic in the IB Business Management syllabus by answering these questions. This is a "dynamic quiz", so feel free to revisit this page regularly as the questions are updated each time you take this quiz.
Fill in the missing parts in the following text:
- This legal status of a business enables its shareholders (business owners) not to be liable for more than the original amount of money invested in the business.
Fill in the missing parts in the following text:
- These organizations are revenue-generating businesses with community (social) objectives at the core of their operations in order to benefit the general public, rather than private shareholders.
What is the term used to describe businesses owned or operated by the government?
As the name suggests, the public sector refers to businesses owned by the government on behalf of the general public.
Which of the following is not a reason why some organizations are owned and run by the public sector?
Operating state-run firms will naturally incur costs so place financial stress on the government. It is however a valid or logical reason why the government may wish to privatise some of their activities.
What form of business operates in two or more countries, or is legally registered in more than one country?
A multinational corporation (or multinational company) is a business that operates in two or more countries, or is legally registered in more than one country.
Drag the text boxes to fill in the missing parts in the following text:
Sole proprietors unlimited stakeholders shareholders bankruptcy partnerships profits finance high
are not regarded a separate legal entity to the business. This means they have liability but do not need to share with other . Many sole traders have difficulty raising and are regarded as risk. Unlike sole traders and that have unlimited liability, there is no threat of losing their personal possessions if the limited liability company goes into debt or faces .
What are non-governmental organizations (NGOs)?
NGOs, a type of social enterprise, support a particular issue or cause that is seen to be socially desirable, such as healthcare or education.
Which type of businesses are for-profit social enterprises owned and managed by their members?
Cooperatives are for-profit social enterprises that are owned and managed by their members.
Fill in the missing parts in the following text:
A business that does not primarily aim to earn a profit but to serve a purpose beyond the organization itself, for the betterment society as a whole.
Which type of businesses are jointly established as a joint venture by a government and one or more private sector businesses?
Public-private partnerships (PPP) are jointly established by a government and one or more private sector businesses.
What is the sector consisting of businesses owned by private groups or individuals known as?
As the name suggests, the private sector refers to businesses owned by private individuals, groups and organizations.
Which type of businesses are for-profit social enterprises that offer a financial service to those without a job or on very low incomes?
Microfinance providers are for-profit social enterprises that offer a financial service to those without a job or on very low incomes, especially women who lack equal access to finance and business opportunities in many countries.
Which of the terms below is an alternative for "publicly held company"?
Publicly held companies are also referred to as joint-stock companies, i.e., businesses owned by shareholders with the shares being openly traded (bought and/or sold) on a public stock exchange (or stock market).
What is the legal agreement that sets out the rules of how a partnership operates known as?
A deed of partnership refers to the legal document which outlines the rights and obligations of each owner involved in a partnership. The other options are fictitious terms.
Which statement does not apply to the concept of unlimited liability?
Unlimited liability means that if the sole proprietorship or partnership fails, the sole trader is personally held responsible for all the debts of the business. As there is no limit to the amount of losses, this means that the sole trader could lose their personal possessions to pay for the organization's debts. Listed companies protect their owners with limited liability.
Which term refers to the marketplace where the general public and other companies can buy and/or sell shares in a publicly held company?
A stock exchange is any marketplace where the general public and other companies can buy and/or sell shares in a publicly held company.
Which of the following is a key objective of the public sector?
The public sector exists to supply goods and services not (adequately) provided for by private businesses, such as health care services, education, street lighting and public roads.
Which term describes the first time the shares of a publicly held company are available for sale on a stock exchange?
An Initial Public Offering (IPO) describes the flotation of a company’s shares on a public stock exchange. The business then formally becomes a publicly held company.
A sole trader is an unincorporated business. What is an important consequence of this?
An unincorporated business is not a separate legal entity from its owner(s). The other options are not necessarily true or specific to sold traders.
Which of the following stakeholder groups controls a limited liability company?
Managers and Directors control a limited liability company, even though shareholders are the owners.
Return to the Unit 1.2 Types of organizations homepage
Return to the Unit 1 Business organization and environment homepage
Twitter
Facebook
LinkedIn