Ownership Structures

What is a key advantage of a sole trader business structure?

• It is a separate legal entity.

• The owner is not responsible for the debts.

• It is simple to establish and easy to operate.

• It requires complex legal regulations.

What is one disadvantage of a sole trader business?

• The owner receives all profits.

• The business has unlimited liability.

• Start-up costs are high.

• It is difficult to change the business structure.

Which of the following is an advantage of a sole trader business?

• High start-up costs.

• Complex government regulations.

• Simplest form of ownership.

• Tax is on the business, not the owner.

What is the minimum number of partners required to form a partnership?

• 1

• 2

• 5

• 10

Which document is advisable to establish before entering a partnership?

• Business license

• Partnership agreement

• Employment contract

• Tax return

What does TFN stand for in the context of a partnership?

• Tax File Number

• Trade Finance Network

• Total Financial Net

• Tax Funding Notice

What is one advantage of a partnership?

• High start-up costs

• Minimal legal and government regulations

• Sole responsibility for management

• High tax on business income

What is a key feature of a company structure?

• It is not a separate legal entity.

• Owners have unlimited liability.

• It requires a separate TFN.

• It does not need to comply with the Corporations Act 2001 (Cth).

What is the maximum number of shareholders allowed in a private company?

• 10

• 50

• 100

• No limit

Which of the following is true about a public company?

• It must have 'Pty Ltd' in its name.

• It is restricted to a maximum of 50 shareholders.

• It is required to publish an annual report.

• Shares can only be sold with shareholders' approval.