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Forms of ownership

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

A sole trader is ...

a)

Business owned by 2-20 partners.

b)

owned and managed by one partner.

c)

1-10 members

d)

Limited liability

2.

A close corporation is a..

a)

Unlimited liability

b)

Liability

c)

Juristic person

d)

Company

3.

Unlimited liability

a)

The owner is not liable of the debts of the business

b)

The owner is semi liable for the debts of the business

c)

The owner is liable for the debts of the business.

d)

Non of the above

4.

Which form of owner that is no longer being registered

a)

Registrar of companies

b)

Private company

c)

State owned Company

d)

Non of the above

5.

Difference between a private company and a personal liability company.

a)

Limited liability both

b)

Personal liability company ends with SOC and Private ends with pty

c)

They have an unlimited liability

d)

Private company ends with PTY(LTD) while personal liability ends with INC

6.

Difference between a private company and a public company.

a)

Private company sells shares to the public and the public company does not .

b)

The public pays tax and the public company does not

c)

The private company does not sell shares to the public and the the public sells shares to the public

d)

They both does not have continuity

7.

Factors to consider when making a decision of choosing a form of ownership

a)

The type of business

b)

Needs of the owner

c)

The needs of the business

d)

All of the above

8.

.........Is a taxation factor that contributes to the failure of a public company.

a)

Public company

b)

Private company

c)

Shareholders pay secondary tax so they need enough profit to make their investment worthwhile.

d)

All of the above

e)

Non of the above

9.

The owners of a Close Corporation are called

a)

Partners

b)

Directors

c)

Members

d)

Shareholders

10.

MOI in full .....

a)

Memorandum of Corporation

b)

Memorandum of company

c)

INC

d)

non of the above

e)

All of the above