Forms of Ownership is one of 9 topics in the Grade 10 Business Studies CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. A sole trader business is owned by:
One person
Two or more people
A group of shareholders
The government
Answer: One person — A sole trader (sole proprietorship) is a business owned and run by a single person.
Easy
2. What does "unlimited liability" mean for a sole trader?
The owner's personal belongings can be used to pay off business debts
The business can never owe any money
The owner has no responsibility for any business debts
The business is legally separate from the owner
Answer: The owner's personal belongings can be used to pay off business debts — Unlimited liability means there is no legal separation between the sole trader and the business, so the owner's personal assets are at risk if the business cannot pay its debts.
Medium
3. Name ONE type of small local business commonly run as a sole trader, mentioned in the lesson.
Answer: Spaza shop — Common examples of sole trader businesses given in the lesson include spaza shops, hairdressers, and small repair services -- simple, small, local businesses.
