Sole trader and partnerships

An association of 2 to 20 individuals operating a business to make a profit is called

• partnership

• franchise

• joint venture

• sole trader

Ease in formation, independence and simple organizational structure are all advantages of

• partnership

• franchise

• joint venture

• sole trader

In a limited liability partnership

• all partnership have limited liability

• only sleeping partners have unlimited liability

• a partnership deed of agreement must exist

• there can be more than 20 partners

One advantage of a sole trader is

• the ability to utilize divisions of labour

• easy access to financial assistance from government

• the swift continuance of business affairs despite mishaps

• the adoption of conservative strategy in dealings

A sole trader is considering entering a partnership, because

• capital and expertise will increase

• there will be guaranteed remuneration

• independence exists greatly with policy alterations

• disagreement is non-existent

Limited liability refers to the

• limited number of company shares

• unpaid value of a shareholder's shares

• equal liability of all shareholders

• number of ordinary shares in existence

An enterprise that has been taken out of the private sector into the public sector is said to have been

• nationalized

• privatized

• enterprise

• denationalized

The term limited liability means

• the business cannot make a loss

• employees are insured againist injury

• shareholders are only liable for the money they invested

• the company cannot be sued for liability

A partnership can have over 20 persons

• True

• False

There are two main types of partnership

• True

• False