Exploring Property Business Structures

What is a key advantage of using a company structure for property investment?

• Limited liability for shareholders

• Unlimited liability for directors

• Simplified tax reporting

• No need for formal registration

Which of the following is a disadvantage of a partnership structure in property management?

• Limited access to capital

• Complex decision-making process

• Unlimited liability for partners

• High regulatory compliance

What is a common feature of family farm management in Australia?

• Corporate governance

• Informal decision-making

• High employee turnover

• External shareholders

Which of the following is a benefit of land tenure security for farmers?

• Increased land taxes

• Reduced access to credit

• Enhanced investment in land improvements

• Decreased property value

What is a primary goal of succession planning in family farms?

• Maximising short-term profits

• Ensuring long-term sustainability

• Reducing family involvement

• Increasing external investment

Which business structure is most likely to face double taxation?

• Sole proprietorship

• Partnership

• Company

• Family trust

What is a disadvantage of using a company structure for property?

• Limited liability

• Complex regulatory requirements

• Easy transfer of ownership

• Access to capital markets

In the context of Australian farms, what is a benefit of a family farm structure?

• High level of bureaucracy

• Strong family involvement

• Limited decision-making flexibility

• High external investment

Which of the following is a key consideration in succession planning for family farms?

• Reducing family disputes

• Increasing short-term profits

• Minimising tax obligations

• Expanding farm size

What is a potential disadvantage of land tenure systems?

• Increased investment in land

• Reduced land disputes

• Limited flexibility in land use

• Enhanced property rights