Types of Business 11-20

Which of the following is true about a partnership?

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

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

Correct! Wrong!

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

Sole proprietorship

Limited companies

All of given options

Partnership

Correct! Wrong!

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

Sole proprietorship

Company

Joint stock company

Limited liability company

Correct! Wrong!

Which of the following documents contains offer to subscribe shares?

Articles of Association

Prospectus

Statutory Declaration

Memorandum of Association

Correct! Wrong!

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

S Type

LLP

Hybrid

Correct! Wrong!

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

Manufacturing

Sole Proprietorship

Partnership

Merchandising

Correct! Wrong!

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

All of given options

Share risks

Reduce taxable income

Gain limited liability

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

All of the given options

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

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 are the owners of a partnership business?

Shareholders

Proprietors

Managers

Partners

Correct! Wrong!

Types of Business 11-20

Super Excellent ***

Excellent ***

Very Good **

Good *

Fair

Fail

Types of Business 11-20

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 forms of business does not protect owners from business creditors?

Which of the following documents contains offer to subscribe shares?

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

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

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

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

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