Types of Business (11-20)

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

Share risks

All of given options

Gain limited liability

Reduce taxable income

Correct! Wrong!

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

The number of shareholders is limited to 50

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

The liability of the company for its own debts is limited

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

Correct! Wrong!

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

Joint stock company

Company

Limited liability company

Sole proprietorship

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 is true about a partnership?

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

A partnership requires at least three people

All partners are personally liable for the debts of the business

All partners have invested an equal amount of capital

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 are the owners of a partnership business?

Partners

Managers

Shareholders

Proprietors

Correct! Wrong!

Which of the following documents contains offer to subscribe shares?

Memorandum of Association

Statutory Declaration

Articles of Association

Prospectus

Correct! Wrong!

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

Partnership

Limited companies

All of given options

Sole proprietorship

Correct! Wrong!

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

S Type

Hybrid

LLP

PC

Correct! Wrong!

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?

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

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

Which of the following is true about a partnership?

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

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

Which of the following documents contains offer to subscribe shares?

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

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

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