Types of Business (11-20)

Which of the following is true about a partnership?

A partnership requires at least three people

All partners are personally liable for the debts of the business

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

All partners have invested an equal amount of capital

Correct! Wrong!

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

Limited companies

Sole proprietorship

Partnership

All of given options

Correct! Wrong!

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

Proprietors

Shareholders

Partners

Managers

Correct! Wrong!

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

Partnership

Sole Proprietorship

Merchandising

Manufacturing

Correct! Wrong!

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

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

All of the given options

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

Sole traders do not need to consult accountants

Correct! Wrong!

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

Company

Joint stock company

Sole proprietorship

Limited liability company

Correct! Wrong!

Which of the following documents contains offer to subscribe shares?

Statutory Declaration

Articles of Association

Memorandum of Association

Prospectus

Correct! Wrong!

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

Reduce taxable income

Share risks

Gain limited liability

All of given options

Correct! Wrong!

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

S Type

PC

Hybrid

LLP

Correct! Wrong!

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

The liability of the company for its own debts is limited

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

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

The number of shareholders is limited to 50

Correct! Wrong!

Which of the following is true about a partnership?

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

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

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

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

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

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?

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

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

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