Forms of Business Units Quiz

What is a sole proprietorship?

• A business owned by multiple partners

• A non-profit organization

• A government-controlled business

• A business owned by one person

Which of the following is a feature of a partnership?

• It requires a large number of partners

• Unlimited liability for all partners

• No profits are shared

• Only one partner can make decisions

What is the main source of capital for limited liability companies?

• Donations from friends

• Personal savings

• Shares sold to shareholders

• Loans from family

What is a characteristic of cooperative societies?

• They are profit-oriented

• Members have one vote each

• Members have unlimited liability

• Membership is compulsory

What is the primary purpose of public corporations?

• To sell shares to the public

• To compete with private companies

• To provide essential services

• To maximize profits

Which document is required for the formation of a limited liability company?

• Partnership deed

• Memorandum of association

• Sole proprietorship license

• Cooperative charter

What is a disadvantage of a sole proprietorship?

• Limited liability

• Easy to form

• Unlimited liability

• Fast decision making

What type of partnership has a maximum of fifty partners?

• Professional partnership

• Temporary partnership

• Limited partnership

• General partnership

What is a key feature of public limited companies?

• They do not publish annual accounts

• They have a maximum of twenty shareholders

• They can raise capital by selling shares to the public

• Shares are not transferable

What is the main advantage of partnerships?

• Unlimited liability

• Ability to raise more capital

• Slow decision making

• Limited access to credit