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WorksheetsOwnership Structure
Total questions: 40
Worksheet time: 21mins
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which of the following is a drawback for an entrepreneur setting up a business as a sole trader?
Profit is shared
Financial accounts are kept private
Limited liability
Unlimited liability
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole trader
Partnership
LTD
PLC
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
More ideas generated
An advantage of operating as a sole trader...
Owner receives all profit
No need to pay tax
Investment from shareholders
Cheaper advertising
True or false: If a business has unlimited liability, the owners personal possessions are at risk if the business falls into debt.
True
False
Which of the following is defined as a business which is owned and operated by one individual?
partnership
sole proprietorship
entrepreneurship
franchise
A business run by 2-100 people and has unlimited liability is known as a:
Company
Sole trader
Partnership
A ...........partner is one whose association with the firm is unknown to the general public.
Active
Sleeping
Secret
Nominal
It can continue as long as the partners want and is terminated when any partner gives a notice of withdrawal from partnership to the firm.
Partnership at will
Particular partnership
Limited partnership
Unlimited partnership
It is optional for a partnership firm to get registered
True
False
Partly true
None of the above
Partnership firms in India are governed under the Partnership Act (a)
Minors can be admitted to share only ...........of the firm
profit
Loss
Liability
Management power
Who among the following partners does not contribute capital
Active
Sleeping
Secret
Partner by Estoppel
Two construction firms joined together to complete building a flyover in Noida. What type of partnership have they formed?
(a)
Choose all that applies: Which are the partners who share profits and losses?
Active partner
Sleeping partner
Secret partner
Partner by estoppel
Decision is taken in partnership firm
Individually
By the partner who has invested more money
By anyone
Mutually
Minor has to give a public notice of his decision within (a) months of attaining majority
Members of Joint Hindu Undivided family are known as __________
Owners
Partners
Coparceners
Shareholders
Oldest member of the Joint Hindu Undivided family is known as ______
Karta
Owner
Coparcener
Partner
1. (a) has unlimited liability in JHFB
If something goes wrong in the business, the sole proprietorship has
to sue the customers
to bear all the responsibility
to open the business in someone else's name
to change the name of the business
JHFB gets dissolved with death of Coparcener
True
False
JHFB gets dissolved with death of Karta
True
False
Sole proprietorship gets dissolved with death of proprietor
True
False
Limited Liability Partnership was framed in the year
(a)
Only up to 100 partners are permitted in a Limited Liability partnership
True
False
Who among the following partner does not take part in management
Active
Secret
Sleeping
Who among the following partner does bear unlimited liability
Secret
Limited Partner
_______Partnership can continue for a specified time or objective
Particular partnership
Partnership at will
Limited partnership
Unlimited partnership
A minor may be admitted to the benefit of partnership with the mutual consent of all the partners
True
False
Who among the following partner does have a relationship with partner but not partnership
Sub Partner
Secret
Sleeping
Limited Partner
Who among the following partner does not share losses of the partnership firm
Partner in profits only
Secret
Sleeping
Limited Partner
Registration is optional in a Limited Liability partnership
True
False
Registration is compulsory in a JHFB
True
False
Registration is not required in case to sole proprietorship
True
False
Complete Secrecy could be maintained in a sole proprietorship
True
False
