Business Organisations

Question 1

What is a sole trader required to complete for formation?

Answer 1

Form TR1

A sole trader can operate in their own name or register a name with the CRO.

Question 2

What type of liability does a sole trader have?

Answer 2

Unlimited liability

Question 3

What is required to form a partnership?

Answer 3

Form LP1 for CRO and a deed of partnership is signed

Question 4

What type of liability does a partnership have?

Answer 4

Unlimited liability

Question 5

What document must a limited company create?

Answer 5

A constitution

Question 6

What is issued to a limited company upon formation?

Answer 6

Certificate of incorporation

Question 7

How many members are required to form a co-operative?

Answer 7

At least seven members

Question 8

What is the main limitation on finance for a co-operative?

Answer 8

Limited to savings or ability to access loans

Question 9

What type of liability do shareholders of a private limited company have?

Answer 9

Limited liability

Question 10

How many shareholders can a private limited company sell shares to?

Answer 10

Up to a maximum of 149 shareholders

Question 11

Who has total control in a sole trader business?

Answer 11

The sole trader

Question 12

How many partners can a partnership have?

Answer 12

Between two and 20 partners

Question 13

How are decisions made in a partnership?

Answer 13

Shared between partners

Question 14

In a limited company, how is voting structured?

Answer 14

One share, one vote

Question 15

What is the role of the board of directors in a limited company?

Answer 15

Elected; board appoints an MD/CEO

Question 16

How do members of a co-operative receive profits?

Answer 16

In proportion to their turnover with the co-op

Question 17

What is the voting structure in a co-operative?

Answer 17

‘One member, one vote’

Question 18

What is the minimum number of members needed for a public limited company?

Answer 18

At least seven members

Question 19

What is a characteristic of shares in a public limited company?

Answer 19

Unlimited shareholders

Question 20

What is a disadvantage of being a public limited company?

Answer 20

Floating is very expensive and financial reporting is much greater

Question 21

What is a benefit of privatisation?

Answer 21

Increased government revenue from sale

Question 22

What is a disadvantage of privatisation?

Answer 22

Loss of state assets

Question 23

What does a franchise involve?

Answer 23

Franchisor grants a licence to franchisee to sell its products

Question 24

What is a benefit of franchising?

Answer 24

Proven idea and existing market research/customers

Question 25

What is a disadvantage of franchising?

Answer 25

More expensive to start up with payment/fees

Question 26

What defines an indigenous business?

Answer 26

Irish-owned, locally based businesses established, owned and managed by Irish residents

Question 27

What is a benefit of indigenous businesses?

Answer 27

Profits stay in Ireland

Question 28

What is a reason for changing organisational structure over time related to liability?

Answer 28

From unlimited to limited, e.g., sole trader to Ltd

Question 29

What tax rate does a limited company pay on profits?

Answer 29

12.5% tax on profits

Question 30

What happens to a company upon the death of a sole trader?

Answer 30

Company ceases to exist

Question 31

What is a characteristic of a limited company regarding legal entity?

Answer 31

Company can sue and be sued

Question 32

What can the government do with semi-state bodies?

Answer 32

Privatisation or nationalisation