Revision - Lesson 4th

The best definition of a sole trader is a business that

• only employs one person
• is owned by one person
• has a single customer
• is a single firm in the industry

One disadvantage of a sole trader business is that

• capital is limited to the owner's savings and bank loans
• decisions take too long to make
• owners may disagree 

One of the advantages of a partnership is that

• all partners have limited liability
• shares can be sold on the Stock Exchange
• the business can survive the death of the partners
• the business has access to more capital than a sole trader

Which type of business organisation is the most popular and suitable for Small business.

• a) Joint Hindu Family

• b) Sole Proprietorship

• c) Partnership

• d) Cooperative society

Which form of organisation is suitable if direct control over operations & absolute decision making power is required in business?

• a) Joint Stock Co.

• b) cooperative society

• c) Sole proprietorship

• d) HUF

One of the advantages of a sole trader business is that

• owners have limited liability
• shares can be sold to raise capital
• decisions and responsibilities can be shared
• the owner has complete control over decision making

Which of the following is not a feature of a private limited company?

• Shares can be issued to raise capital
• Shares can be bought  and sold on the Stock Exchange
• All owners of the business have limited liability
• The business continues after the death of a shareholder

Meaning of Unlimited liability is

• unlimited resources may be use

• Unlimited payment is to be done

• Personal property of proprietor will be use to pay business debt

• unlimited time for business

Which of the following is the definition for Corporation?

• business investment that involves renting or leasing another successful business model
• unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued

Which of the following is the definition for Partnership?

• business investment that involves renting or leasing another successful business model
• unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued