WorksheetsCompany law/Business entities
Total questions: 17
Worksheet time: 13mins
Name
Class
Date
1.
Property of the company belongs to
a)
Shareholders
b)
company
c)
members
d)
promoters
2.
What does 'Limited Liability by Shares' principle mean ?
a)
liability of shareholder's are unlimited
b)
liability of shareholder's are limited to the re sale value of shares they have in the company
c)
liability of shareholder's are limited to the extent of the nominal value of shares in the company
d)
share holder's have no liability for company's losses
3.
Are private companies allowed to issue shares ?
a)
Yes
b)
No
4.
Define partnership.
a)
The relation which subsists between persons carrying on business in common with a view of profit
b)
The relation which subsists between persons carrying on business
c)
The relation which subsists between two persons carrying on business
d)
The relation which subsists between persons carrying on business in with a view of profit
5.
It is owned by one entrepreneur and sometimes, the owner may employ a worker for assistance. This refers to
a)
Sole proprietorships
b)
Partnership
c)
Public company
d)
Private company
6.
When the partners mutually agreed to dissolve the partnership, it will be dissolved by
a)
operation of law
b)
revocation
c)
agreement
d)
supervening illegality
7.
The principle that states a company is a person separate from its members is known as
a)
bona fidei
b)
separate legal entity
c)
utmost good faith
d)
caveat emptor
8.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
9.
Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
10.
A partnership in which all partners assume full personal liability for debts of the firm
a)
limited partnership
b)
trading partnership
c)
non-trading partnership
d)
general partnership
11.
Partners who are only responsible up to the extent of their investment
a)
limited partnership
b)
trading partnership
c)
non-trading partnership
d)
special partnership
12.
How is a general partnership organized?
a)
Every partner shares equally in both responsibility and liability
b)
The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership
c)
No partner is responsible for the debts of the partnership beyond his or her investment
d)
Only one partner is responsible for the debts of the partnership
13.
What is a major advantage of a business that is a partnership rather than a sole proprietorship?
a)
The responsibility for the business is shared
b)
The business is easy to set up
c)
The partners are not responsible for business debts
d)
The business is easy to sell
14.
Which of the following is an advantage of the corporation as a form of business ownership:
a)
Less complex requirements
b)
Separate owners and managers
c)
Limited liability
d)
High Taxes
15.
The owners of a corporation are called
a)
Directors
b)
Partners
c)
Shareholders
d)
Founders
16.
A company has 500 000 ordinary shares. A dividend of $0.06 per share was declared. What is the total dividend amount distributed by the company?
a)
$6 000
b)
$30 000
c)
$500 000
d)
$3 000 000
17.
Provide any stock exchange market you know?
4 lines
100 %
