Finance Unbox-ED ($) - Grade 6-8 - Session 028 - Assessment 7

Select the statement that is true about companies

• Company is a separate legal entity created to start a business
• People who start the company are called the founders of the company
• Both of the above
• None of the above

Separate legal entity means that the company is considered different than its founders / owners

• True
• False

Owners of the company in case of losses are personally liable - this is called limited liability

• True
• False

Select the statement that is true about companies

• Investment made by owners in a company is called equity share capital
• Owners get shares in a company for their investment
• Both of the above
• None of the above

Select the statement that is true about companies

• Owners are also called shareholders
• Profit is shared by owners in the ratio of their shareholding
• Both of the above
• None of the above

Companies have more paperwork and compliances than sole proprietorships but lower than partnerships

• True
• False

Companies are generally much larger than sole proprietorships and partnerships

• True
• False

What does LLP stand for?

• Limited Loss Partnership
• Limited Loss Partners
• Limited Liability Partners
• Limited Liability Partnership

Select the statement that is true about LLPs

• In a LLP the liability of its partners is limited to their investment in the partnership
• In a LLP partners are personally liable for losses
• Both of the above
• None of the above

Select the statement that is true about LLPs

• LLP has more paperwork and compliances than a partnership
• LLP is becoming increasingly popular as it combines the benefits of both partnerships and companies
• Both of the above
• None of the above