Joint Stock Company Lesson

Multiple Choice

What is the main objective of a sole proprietorship business?

• To establish a legal entity

  
  

• To make profit

  
  

• To provide employment opportunities
  

• To expand the business globally

  
  

Multiple Choice

What is a source of capital for a partnership business?

• Selling personal properties
• Using credit cards
• Loan from the bank
• Investing in stocks

Multiple Choice

What is a type of partner who only contributes capital to the business and does not participate in management?

• General partner
• Secret partner
• Dormant partner
• Inactive partner

Multiple Choice

What is a document drawn up to clarify the respective positions of the partners in a business?

• Financial report
• Articles of incorporation
• Employee handbook
• Deed of partnership

Multiple Choice

What can lead to the dissolution of a partnership business?

• None of the above
• Bankruptcy of one partner
• Change in market trends
• All of the above

Multiple Choice

What is the main way joint stock companies raise money?

• Investing in cryptocurrency
• Donating to charity
• Selling products to customers
• Selling shares in their ownership

Multiple Choice

Who are the owners of joint stock companies?

• Shareholders
• Employees
• Suppliers
• Customers

Multiple Choice

What document states who the company is, where they are based, and what they do?

• Balance Sheet
• Income Statement
• Articles of Association
• Cash Flow Statement

Multiple Choice

What is the main advantage of a private limited company?

• Unlimited liability for shareholders
• Higher taxes for shareholders
• Less control for shareholders
• Limited liability for shareholders

Multiple Choice

What is the main disadvantage of a private limited company?

• Shares can be sold publicly
• Shareholders have unlimited liability
• Directors may not run the business in the interests of shareholders
• Financial information may have to be disclosed

Multiple Choice

What is the main advantage of a public limited company?

• No need to publish annual financial accounts
• Limited liability for shareholders
• Unlimited liability for shareholders
• Publicly traded shares

Multiple Choice

What is the name of a private limited company that restricts the right to transfer its shares and limits the number of its shareholders?

• Public Limited Company
• Sole Proprietorship
• Limited Liability Company
• Joint Stock Company