Types of Business (11-20)

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

Partners

Proprietors

Managers

Shareholders

Correct! Wrong!

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

Merchandising

Sole Proprietorship

Partnership

Manufacturing

Correct! Wrong!

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

Limited liability company

Joint stock company

Company

Sole proprietorship

Correct! Wrong!

Which of the following documents contains offer to subscribe shares?

Prospectus

Articles of Association

Memorandum of Association

Statutory Declaration

Correct! Wrong!

Which of the following is true about a partnership?

All partners are personally liable for the debts of the business

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

A partnership requires at least three people

All partners have invested an equal amount of capital

Correct! Wrong!

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

Gain limited liability

All of given options

Reduce taxable income

Share risks

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 liability of the company for its own debts is limited

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

The number of shareholders is limited to 50

Correct! Wrong!

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

Sole proprietorship

Partnership

Limited companies

All of given options

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!

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

Hybrid

PC

LLP

S Type

Correct! Wrong!

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 forms of business does not protect owners from business creditors?

Which of the following documents contains offer to subscribe shares?

Which of the following is true about a partnership?

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

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/are true about the sole trader form of business?

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

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