What this practice covers
These questions are drawn from past CIE 0264 Business papers and filtered to types of business organisation. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on types of business organisation, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Saying a public limited company is owned by the government. Both kinds of company are private sector.
- Saying limited liability means the business cannot lose much. It limits what the owners personally lose, not the company's losses.
- Saying a sole trader works alone. A sole trader has one owner and may employ many people.
- Forgetting that partners are liable for debts run up by the other partners.
- Saying a private limited company can sell shares on the stock exchange. It cannot; that is what makes it private.
- Treating a joint venture as a merger. The businesses remain separate.
- Giving franchise advantages without saying whose. Franchisor and franchisee want different things.
- Saying a social enterprise does not aim to make money. It needs a surplus; the difference is where the surplus goes.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Types of business organisation revision notes.