Types & characteristics of business owner

Which of the following is included in a Partnership Agreement?

• Types of taxes, closing date of accounts, employer liability

• Business management, profit distribution, capital contribution

• Business license, rental agreement, dividend amount

• Bonus distribution, share sales, employee control

Which of the following is an advantage of partnership

• Business ends if a partner resigns or passes away

• Conflict of opinions may occur

• Shared profits may lower individual earnings

• Simple registration process with minimal legal requirements

Why do owners of a Private Limited Company have limited liability?

• Because they are only accountable up to the capital they invested

• Because shareholders have unlimited responsibility

• Because the government pays all company debts

• Because personal assets must be used for debts

Which of the following shows business continuity in a Private Limited Company?

• The company stops if the main owner dies

• The company must merge with another when the owner resigns

• The company is dissolved if shareholders disagree

• The company continues to operate as it is a separate legal entity

Which of the following is the key point of a sole proprietorship?

• The owner shares control with a partner

• The owner keeps all the profit

• The profit is shared with shareholders

• The owner has limited decision-making power

Which of the following is an advantage of a sole proprietorship?

• Control is shared among several owners

• The business enjoys unlimited

• It is simple to establish

• The business has formal continuity