Forms of ownership

A sole trader is ...

• Business owned by 2-20 partners.

• owned and managed by one partner.

• 1-10 members

• Limited liability

A close corporation is a..

• Unlimited liability

• Liability

• Juristic person

• Company

Unlimited liability

• The owner is not liable of the debts of the business

• The owner is semi liable for the debts of the business

• The owner is liable for the debts of the business.

• Non of the above

Which form of owner that is no longer being registered

• Registrar of companies

• Private company

• State owned Company

• Non of the above

Difference between a private company and a personal liability company.

• Limited liability both

• Personal liability company ends with SOC and Private ends with pty

• They have an unlimited liability

• Private company ends with PTY(LTD) while personal liability ends with INC

Difference between a private company and a public company.

• Private company sells shares to the public and the public company does not .

• The public pays tax and the public company does not

• The private company does not sell shares to the public and the the public sells shares to the public

• They both does not have continuity

Factors to consider when making a decision of choosing a form of ownership

• The type of business

• Needs of the owner

• The needs of the business

• All of the above

.........Is a taxation factor that contributes to the failure of a public company.

• Public company

• Private company

• Shareholders pay secondary tax so they need enough profit to make their investment worthwhile.

• All of the above

• Non of the above

The owners of a Close Corporation are called

• Partners

• Directors

• Members

• Shareholders

MOI in full .....

• Memorandum of Corporation

• Memorandum of company

• INC

• non of the above

• All of the above