Business Considerations Quiz

Which of the following is a key consideration when choosing a form of business?

• The color of the business logo

• The key considerations applicable to the business

• The number of employees in the business

• The type of advertising used

...refers to the ongoing operation and stability of an organisation or entity, encompassing the ability to maintain its structure, activities, and relationships over time, even as individual members or managers change

• Limited liability

• Continuity

• perpetual existence

• Legal (or juristic) personality

What is the main advantage of "limited liability" for the owners of a company?

• Owners can easily transfer their shares

• Owners are not personally responsible for the company's debts or legal obligations

• Owners have complete control over the company

• Owners are taxed at the individual level

Which form of enterprise structure allows for the easiest transfer of ownership interests?

• Sole proprietorship

• Corporation

• Partnership

• Cooperative

A sole proprietor has complete control over business decisions, while in a corporation, who typically oversees major decisions?

• The government

• The customers

• A board of directors elected by shareholders

• The employees

How does taxation differ between sole proprietorships and corporations?

• Sole proprietorships face double taxation, while corporations are taxed at the individual level

• Both are taxed at the corporate level only

• Sole proprietorships are taxed at the individual level, while corporations may face double taxation

• Both are exempt from taxation

Which of the following is a form of enterprise found in South Africa?

• A Sole Proprietorship

• Franchise

• Multinational Corporation

• State-Owned Enterprise

Which of the following is a disadvantage of a sole proprietorship?

• The owner is personally liable without limitation.

• There are special legal restrictions.

• It is difficult to discontinue.

• The owner has no decision-making authority.

A sole proprietorship is most common among which type of businesses?

• Small businesses

• Large multinational corporations

• Non-profit organizations

• Government agencies

Which of the following is NOT an advantage of a sole proprietorship?

• The owner has limited access to capital.

• It is the least expensive way of beginning a business.

• There are no special legal restrictions.

• It is easy to discontinue.