MCQs on Business Organizations

What is the main disadvantage of a sole proprietorship?

• Reduced profits

• Unlimited liability

• Difficulties in organization

• Less control

What type of business involves two or more individuals sharing profits?

• Companies

• Partnerships

• Sole proprietorships

• Cooperatives

What type of business does MAS Holdings belong to?

• Sole proprietorships

• Partnerships

• Companies

• Cooperatives

What is the main advantage of a corporation?

• Lower taxes

• Limited liability

• Quick decision-making

• Less government oversight

What is the main advantage of a company?

• Low taxes

• Limited liability

• Quick decisions

• Low departmental size

Which type of business do legal companies generally belong to?

• Sole proprietorship

• Partnership

• Corporations

• State enterprises

What is the best reason to start a sole proprietorship business?

• Need for large startup capital

• Limited liability

• Ease of start and control

• International trade

Choose the correct statement regarding companies:

• Only owned by a single person

• Personal assets of shareholders are protected

• Registration is not required

• There is unlimited liability

What could be a problem in a partnership business?

What is the issue that may arise in a partnership?

• Profit sharing

• Conflicts

• Low income

• High taxes