Principles of Accounts

Principles of Accounts

Business Organisation

Video- Sole Proprietorships

Multiple Choice

Which of the following is an advantage of a sole proprietorship?

• No one is responsible if it fails

• It is an easy way to make a lot of money

• It is easy to get financing to start one

• It is the least-regulated form of business organization

Multiple Choice

Which of the following is a disadvantage of a sole proprietorship?

• legal constraints

• high taxes

• lack of permanence

• difficult to start up

Video- Partnership

Multiple Choice

If a general partnership fails, who is responsible for the debts?

• anyone who works for the partnership

• only the most senior general partner

• no one

• all of the partners

Video- General Partnership

Multiple Choice

A business in which the owners share equally in both responsibility and liability

• general partnership

• cooperative

• limited partnership

• sole proprietorship

Multiple Choice

Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?

• The more limited access to a partner's person funds make the business more careful

• A partnership has more personal stability and access to more money

• The larger number of partners means that people are easier to get along with

• The large number of partners makes it more likely that the business will be a success