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- 1. Multiple Choice
What is a sole proprietorship?
Limited liability
Sharing of profits
Single ownership
More than 2 persons
- 2. Multiple Choice
What kind of business is BEST described by these statements?
I am the only owner of my business.
I take all the risks of doing business.
I keep all the profits.
Partnership
Cooperative
Corporation
Sole proprietorship
- 3. Multiple Choice
An entrepreneur is who
enforces government regulations
takes the risk to earn profit
sets the interest rates at banks
manages financial investments
- 4. Multiple Choice
A form of business organization that is authorized to act as a legal entity regardless of the number of owners.
Company
Partnership
Sole proprietorship
Distributor
- 5. Multiple Choice
What is a disadvantage of a partnership?
Ease of formation
Limited liability
Owners share responsibilities
Possibility of personality conflict
- 6. Multiple Choice
What type of business consists of two or more people?
Sole proprietorship
Company
Partnership
Franchise
- 7. Multiple Choice
Law firms, medical practices, and auto body repair shops are examples of what type of ownership?
Sole proprietorship
Franchise
Partnership
Corporation
- 8. Multiple Choice
What type of business structure is owned by many people?
Company
Sole proprietorship
Partnership
Firm
- 9. Multiple Choice
Nike, Fashion Valet, and Google are examples of
Partnership
Sole proprietorship
Company
Self business
- 10. Multiple Choice
One of the advantages of a sole trader business is that
owners have limited liability
decisions and responsibilities can be shared
shares can be sold to raise capital
the owner has complete control over decision making
- 11. Multiple Choice
A company is a ___
sole proprietorship
corporation
partnership
business option
- 12. Multiple Choice
Select all effects of incorporation.
company able to sue and being sued
company becomes a body corporate
company able to acquire, own, hold, develop and dispose any property
company enjoys perpetual succession
- 13. Multiple Choice
The principle of corporate veil separates ____
the company with creditors
the company from people behind it
the creditors with shareholders
- 14. Multiple Choice
Lifting corporate veil is ____
a principle that will protect members and officers from being liable to debts and obligations of the company.
an action where the separation of the company from its members is no longer available
contents in Constitution that inconsistent with Companies Act 2016
- 15. Multiple Choice
What is a company?
A business own by individual
A legal entity separate from its member
2 or more persons doing business with a view of profit
- 16. Multiple Choice
What is/are the characteristic(s) of a company?
Separate legal entity
Limited liability
Maximum 20 members
Dissolved by winding up
- 17. Multiple Choice
What is/are the effect(s) of company incorporation?
Ability to own property
Ability to sue and be sued
Ability to incur its own liability
Not perpetual succession
- 18. Multiple Choice
What is the biggest risk of starting a new business?
Losing Money
Being Successful
Making Money
Failing
- 19. Multiple Choice
What is a major advantage of a business that is a partnership rather than a sole proprietorship?
The responsibility of the business is shared equally
The partners are not responsible for business debts
The business is easy to set up
The business is easy to sell
- 20. Multiple Choice
The owners of a corporation are called
Directors
Shareholders
Partners
Founders
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