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SingaporeBusiness StudiesQuick questions
Business Organisation and Environment
Quick questions on Types of business organisation explained: O-Level Business Studies
8short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is sole trader?Show answer
A sole trader is a business owned and controlled by one person. It is the simplest and most common form.
What is partnership?Show answer
A partnership is a business owned by two or more partners (often 2 to 20) who share the work, profits and responsibility, usually under a partnership agreement (a deed).
What is private limited company (Ltd / Pte Ltd)?Show answer
A private limited company is an incorporated business owned by shareholders. Shares cannot be sold to the general public. It is a separate legal entity from its owners.
What is public limited company (plc / Ltd by shares listed)?Show answer
A public limited company is a large incorporated business whose shares can be sold to the public on a stock exchange.
What is choosing a form?Show answer
The right form depends on how much capital is needed, how important control and privacy are to the owners, and the risk involved (limited liability protects personal assets). Firms often start as sole traders and become companies as they grow.
What is q1?Show answer
State two advantages of being a sole trader. [2 marks]
What is q2?Show answer
Explain what is meant by limited liability and why it benefits shareholders. [3 marks]
What is q3?Show answer
Analyse one disadvantage for the owners of turning a private limited company into a public limited company. [4 marks]