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Worksheetsforms of business units
Total questions: 63
Worksheet time: 41mins
What is a Sole Proprietorship?
Business owned by president
Business owned by several companies
Business owned by one person
Business owned by a company
Sole proprietorship business can be started by
at least seven persons
any one person
at least two persons
at least three persons
Sole proprietorship business owner has
Restricted Liability
No Liability
Unlimited Liability
Limited Liability
The reason for the end of the sole proprietorship can be
Insolvency
Insanity
Death
All the above
A sole proprietor has a limit in which of the following ability
Managerial
Owner
Worker
None of these
What is a Sole Proprietorship?
Business owned by president
Business owned by several companies
Business owned by one person
Business owned by a company
Sole Proprietorship is most suitable for
Medium scale concerns
Large scale concerns
Small scale concerns
None of the above
A Sole proprietor concern is free from regulation by
Indian Contract Act
Government
Private Indian
Indian Law
The capital required by a sole proprietor is arranged by his?
Parents
Friends
All
Sole Proprietor himself
What is a Sole Proprietorship?
Business owned by president
Business owned by several companies
Business owned by one person
Business owned by a company
A business with one owner is known as a:
Company
Sole trader
Partnership
The two forms of business ownership with unlimited liability are:
Sole trader
Public company
Partnership
Private company
Advantages of a sole trader are:
Limited liability
The owner makes all the decisions
The owner takes all the profit
Can raise substantial capital
Advantages of a partnership are:
The partners split the profit
Unlimited liability
Raise more capital than a sole trader
Share the workload
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
It is a form of business ownership, where there is one owner who's responsible for the business.
SOLE PROPRIETORSHIP
PROPRIETORSHIP
SOLE PREPRIOTERSHIP
SOAL PROPREITORSHIP
the potential for conflict between partners
The main disadvantage of a __________ is that each person is fully responsible for the acts of all other persons.
Proprietorship
Partnership
Corporation
Franchise
What term is defined as an enterprise that produces goods or services, usually to make a profit?
business organization
unlimited liability
stock
vertical merger
I am the only owner of my business.
I take all the risks of doing business.
I keep all the profits.
How is a corporation different from a sole proprietorship or partnership?
A corporation has only one or two owners.
A corporation is usually owned by one person.
A corporation requires a legal charter with the state.
The owners (stockholders) have limited liability.
Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.
Sole Proprietorship
Partnership
Corporation
Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.
Sole Proprietorship
Partnership
Corporation
Unger and Unger is a law firm consisting of two brothers who started their own business. They both are responsible for all profits and risks that their firm will have.
Sole Proprietorship
Partnership
Corporation
8. A person who takes a risk to produce goods and services in search of a profit is an entrepreneur. In which kind of business structure may entrepreneurs establish a business?
Partnerships and Corporations
Sole Proprietorships, Partnerships, and Corporations
Only Corporations
Sole Proprietorships and Corporations
9. What type of business is described in the diagram below?
Sole Proprietorships
Partnerships
Corporation
10. What characteristic of a corporation is missing from the diagram on the below?
Owner shares the profits with family members only
Stockholders share the profits
Main owner receives the majority of profits
Board of Supervisors has the final say on new products
2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses.
Sole Proprietorship
Partnership
Corporation
Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.
Sole Proprietorship
Partnership
Corporation
-Two or more owners
-Lower taxes
-Unlimited Liability
Partnership
Sole Proprietorship
Corporation
All of the above
What type of paperwork is needed for a Partnership?
Business License
Partnership Agreement
Corporate Charter
Franchise Agreement
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
More ideas generated
list two disadvantages of partnership (REM)
(I) partners might not all contribute equal
(ii) partnership has unlimited liability
(i) cash flow is often a problem
(ii) there could be a lack of capital and cash flow
(i) limited amount of capital available
(ii) ineffective services
When one person has full responsibility and the other is “silent partner” it is a:
General Partnership (GP)
Limited Liability Partnership (LLP)
Limited Partnership (LP)
it is not a partnership
How many partners are there in a typical partnership?
2
2-4
2-20
1
More owners means more disagreements for what type of structure?
Public Limited
Partnerships
Private Limited
Sole Trader
_______________is a legal term for being held accountable
Liability
Assets
Bankruptcy
Claim
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.
Sole Proprietorship
Partnership
Corporation
Limited liability company
Which of the following is an advantage of a partnership?
Which of the following is an advantage of a partnership?
partnerships can usually attract financial capital more easily than proprietorships.
management is hard between two or more people
They are inefficient.
A partnership has ______________ personal liability
unlimited
limited
The members of a Co-operative Society have
Unlimited liability
Limited liability
Joint and Several liability
Joint liability
In a Co-operative Society, admission of members and allocation of shares is done by
Secretary
Managing Committee
President
General Body
The principle followed in a co-operative society is
No Vote
One man, one vote
Multiple votes
One share one vote
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
protecting the interest of small producers is the objective of
Producer co-operative
Consumer co-operative
Marketing co-operative
Housing co-operative
which type of cooperative society performs various functions related to transportation,warehousing,gardening etc.
Farmers cooperative society
Consumer cooperative society
Marketing cooperative society
Credit cooperative housing society
These societies are established to help small producers in selling their products
(a)
which of the following is a limitation of a cooperative society
a co-operative society is managed in a democratic way
members have limited liability
co-operative societies can't extend beyond a certain limit, they are likely to fail if they try to expand like big joint stock companies
co-operative societies have open membership
The 'separate legal entity' feature of a co-operative society states that
It assigns unlimited liability to its member
It is not affected by the entry or exit of its members
It is controlled by the founder members of the society
