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WorksheetsBE Unit 1 EOB unit 2 Progress Test MCQ
Total questions: 10
Worksheet time: 5mins
One of the advantages of a sole-proprietor is that
it has limited liability.
its shares are freely transferable
the owner can make quick decisions.
the owner can make quick decisions.
A private company raises its own capital by
issuing bonds.
issuing debentures
selling shares to the public
selling shares to the members.
profits are shared according to the agreement formed
Partnership.
Private company.
Close corporation.
Co-operative society.
Which of the following set up structure has limited liability?
Sole trader and close corporation.
Private corporation and public company.
Sole trade and partnership
Private company and General partnership
examples of businesses in the tertiary sector
School, hydroponics farm, garment factory.
Hotel, spa, petrol refinery
Hairdressing salon, Insurance company, tuition centre.
Vineyard, audit company, tax consultancy company
Retail shops like beauty salons are sole-proprietorship business unit because the business can
carry on indefinitely.
operate with limited capital.
obtain loans from banks easily.
hire professionals to manage the business.
Which one of the following is an advantage of a sole-proprietorship?
Ease of starting a business.
Direct Reward.
Being your own boss.
All of the above.
The main disadvantage of a general partnership is
disagreement amongst partners.
shared management.
the unlimited liability of the partners.
difficulty of termination.
NOT one of the three forms of business organization?
Company.
Proprietorships
Investors.
Partnership
greatest degree of continuity?
Company.
General partnership
Sole-proprietorship.
Joint venture.
