Quiz 3 What type of an economic system does Maldives have? Mixed Economy Traditional Economy Market Economy Command Economy A sole trader is a small business owned and usually managed by a single person. True False In which type of a business organization is the business secrecy the easiest to maintain? Private Limited Companies Sole Trader Partnerships Public Limited Companies Specialization and economies of scale are easy in sole proprietorships. True False Which of the following is a business organization in the public sector of the economy? Private Limited Companies Public Limited Companies Partnerships Public Corporations Sole Trader Liabilities of sole trader is unlimited. Therefore it is a big advantage for him. True False What is the maximum number of owners in a partnership? 10 2 20 5 A partnership can usually raise a bigger capital than a sole proprietorship. True False Which of the following is an advantage of partnership? A partnership can raise a bigger capital compared to a sole trader. Therefore expansion is possible. There is a limit on the number of partners the business can have. Therefore expansion has a limit too. Partners have to share the profit between the partners. Unlimited Liability. The limited companies are called so because the liability of the owners are limited to the amount of shares they hold in that particular company. True False Loading … Question 1 of 10