Types of Business (11-20)

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!

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

Partnership

Manufacturing

Merchandising

Sole Proprietorship

Correct! Wrong!

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

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

The number of shareholders is limited to 50

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

The liability of the company for its own debts is limited

Correct! Wrong!

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

LLP

Hybrid

S Type

PC

Correct! Wrong!

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

Managers

Shareholders

Proprietors

Partners

Correct! Wrong!

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

All of given options

Sole proprietorship

Limited companies

Partnership

Correct! Wrong!

Which of the following is true about a partnership?

All partners are personally liable for the debts of the business

All partners have invested an equal amount of capital

A partnership requires at least three people

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

Correct! Wrong!

Which of the following documents contains offer to subscribe shares?

Memorandum of Association

Statutory Declaration

Prospectus

Articles of Association

Correct! Wrong!

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

Share risks

All of given options

Reduce taxable income

Gain limited liability

Correct! Wrong!

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

Company

Sole proprietorship

Limited liability company

Joint stock company

Correct! Wrong!

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

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

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

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

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

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?

Which of the following documents contains offer to subscribe shares?

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

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

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