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Forms of Ownership

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

The form of ownership established by a group people who agree to work together for mutual economic benefit.

a)

Close Corporation

b)

Co-operative

c)

Non-Profit Organisation

2.

An invitation by a company to the public to buy shares.

a)

Debenture

b)

Share

c)

Dividend

d)

Prospectus

3.

The current and past directors of a __________ company are jointly and severely liable for the debts of the company.

a)

Partnership

b)

Personal Liability Company

c)

Private company

d)

State-owned company

4.

Browns Architects Inc. is an example of a ________

a)

State-owned company

b)

Non-Profit company

c)

Co-operative

d)

Personal Liability Company

5.

This document specifies the main activities of a public company:

a)

MOI

b)

Founding statement

6.

Unlimited liability means …

a)

owners' personal assets are protected in the event that the

business becomes insolvent.

b)

owners stand to lose their personal assets in the event that the

business becomes insolvent.

c)

owners cannot lose more than what they have invested in the

business in the event that the business becomes insolvent.

d)

owners are not entitled to share in the profits of the business.

7.

Denel SOC Ltd manufactures defence equipment and has only one shareholder, the South African government. Denel is therefore a …company.

a)

non-profit

b)

personal liability

c)

state-owned

d)

private

8.

The owners of this type of ownership are taxed only in their personal capacity.

a)

Private company

b)

Partnership

c)

Close Corporation

d)

Public company

9.

A state-owned company has ...

a)

limited liability and limited continuity.

b)

unlimited liability and unlimited continuity.

c)

limited liability and unlimited continuity.

d)

unlimited liability and limited continuity.

10.

Identify the form/s of ownership that is registered at the CIPC (Commission for Intellectual Properties and Companies).

a)

Partnership

b)

Closed Corporation

c)

Co-operatives

d)

State owned company

11.

This form of ownership is founded by at least five members and registered at the CIPC.

a)

Partnership

b)

Co-operative

c)

Non-profit company

d)

Close Corporation

12.

AK and Sons is an example of a …….

a)

private company

b)

close corporation

c)

personal-liability company

d)

partnership