BE Unit 1 EOB unit 2 Progress Test MCQ

One of the advantages of a sole-proprietor is that

• it has limited liability.

• its shares are freely transferable

• the owner can make quick decisions.

• the owner can make quick decisions.

A private company raises its own capital by

• issuing bonds.

• issuing debentures

• selling shares to the public

• selling shares to the members.

profits are shared according to the agreement formed

• Partnership.

• Private company.

• Close corporation.

• Co-operative society.

Which of the following set up structure has limited liability?

• Sole trader and close corporation.

• Private corporation and public company.

• Sole trade and partnership

• Private company and General partnership

examples of businesses in the tertiary sector

• School, hydroponics farm, garment factory.

• Hotel, spa, petrol refinery

• Hairdressing salon, Insurance company, tuition centre.

• Vineyard, audit company, tax consultancy company

Retail shops like beauty salons are sole-proprietorship business unit because the business can

• carry on indefinitely.

• operate with limited capital.

• obtain loans from banks easily.

• hire professionals to manage the business.

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

• Ease of starting a business.

• Direct Reward.

• Being your own boss.

• All of the above.

The main disadvantage of a general partnership is

• disagreement amongst partners.

• shared management.

• the unlimited liability of the partners.

• difficulty of termination.

NOT one of the three forms of business organization?

• Company.

• Proprietorships

• Investors.

• Partnership

greatest degree of continuity?

• Company.

• General partnership

• Sole-proprietorship.

• Joint venture.