1.1) Which one of the following statements describe a sole proprietor best?

a) There are two owners

b) The sole proprietor owns and manages the business alone

c) It can no longer be registered in South Africa

1.1) What is the easiest form of ownership?

a) Sole proprietor

b) Close corporations

c) Private Company

1.1) Which one of the following is an advantage of a partnership?

a) The owner is entitled to all profits

b) There an only a few legal requirements to start and end this type of business

c) It is easy an inexpensive to form this business

5) Which one of the following is a characteristic of a partnership?

a) In the agreement it states how the profit and losses will be divided

b) There are no special requirements to close the business

c) It is limited to between 1 and 50 partners

1.6) The name of a close corporation ends with:

a) (PTY) Ltd

b) Any name which is agreed to

c) CC in capital letters

1.7) The legal formalities of a partnership are:

a) It cannot be registered

b) An Oral or written agreement

c) Few legal Requirements

1.1) Examples of a sole proprietor is:

a) Hairdressers

b) Dry cleaners

c) All of the above

1.1) A non-profit company is known as:

a) Public company

b) Private company

c) A CC

1.1) Shareholders are:

a) A financial manager

b) All people who own shares in a company

c) People who work for the company

1.1) The continuity of a CC has:

a) None

b) Lifetime continuity

c) Continuity as long as it is solvent

1.1) Which one of the following companies fall under the Companies Act 71 of 2008?

a) Private company

b) Close corporation

c) Sole proprietor.

1.1) Private and public companies have the following in common:

a) 1 to 50 shareholders

b) It has to comply with the legal requirements

c) Company name ends with (PTY) Ltd

1.1) A disadvantage of state-owned companies is:

a) Disagreement between members can lead to conflict

b) Little personal contact between shareholders

c) Political interference can occur

1.1) The liability of a private company is:

a) Limited

b) Unlimited

c) None of the above