Types of Business 11-20

Which of the following forms of business does not protect owners from business creditors?

Sole proprietorship

Limited liability company

Joint stock company

Company

Correct! Wrong!

What is the meaning of the word ‘limited’ in the name of a limited company?

There is a limit on the amount of debts that the company can contract

The number of shareholders is limited to 50

The liability of the company for its own debts is limited

The liability of shareholders for the company’s debts is limited

Correct! Wrong!

In which type of a business, the owner and his business are not considered same in the eyes of law?

Partnership

All of given options

Sole proprietorship

Limited companies

Correct! Wrong!

Which of the following is true about a partnership?

All partners have invested an equal amount of capital

All partners are personally liable for the debts of the business

A partnership requires at least three people

Partnerships do not get favorable tax treatment compared to joint stock company (JSC)

Correct! Wrong!

Organizations which combine the limited liability advantage in sole ownership are called?

LLP

Hybrid

PC

S Type

Correct! Wrong!

Which of the following are the owners of a partnership business?

Proprietors

Partners

Shareholders

Managers

Correct! Wrong!

The partnership format might be useful to the owners of a small business in order to?

Share risks

Gain limited liability

All of given options

Reduce taxable income

Correct! Wrong!

A _______________ business is one in which income is generated by the resale of produced product?

Manufacturing

Merchandising

Sole Proprietorship

Partnership

Correct! Wrong!

Which of the following documents contains offer to subscribe shares?

Prospectus

Memorandum of Association

Articles of Association

Statutory Declaration

Correct! Wrong!

Which of the following is/are true about the sole trader form of business?

Sole traders must register the name of their business with the registrar of companies

Sole traders do not need to consult accountants

All of the given options

A sole trader is liable to pay income tax on his/her earnings

Correct! Wrong!

Which of the following forms of business does not protect owners from business creditors?

What is the meaning of the word ‘limited’ in the name of a limited company?

In which type of a business, the owner and his business are not considered same in the eyes of law?

Which of the following is true about a partnership?

Organizations which combine the limited liability advantage in sole ownership are called?

Which of the following are the owners of a partnership business?

The partnership format might be useful to the owners of a small business in order to?

A _______________ business is one in which income is generated by the resale of produced product?

Which of the following documents contains offer to subscribe shares?

Which of the following is/are true about the sole trader form of business?

Search