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CHAPTER 2 - FORMS OF BUSINESS OWNERSHIP

Total questions: 20

Worksheet time: 2mins

Name
Class
Date
1.

Which of the following is NOT a type of business ownership?

a)

partnership

b)

sole proprietorship

c)

entrepreneurship

d)

franchise

2.

How many people in a sole proprietorship?

a)
3
b)
2
c)
1
d)
20
3.

Which are the advantages of sole proprietorship?

a)

Flexible and Minimum Regulatory Requirements

b)

Simplified Taxation

c)

Direct Profits

d)

All of them

4.

Limited Access to Capital, Unlimited Liability & Limited Growth Potential are the disadvantages of sole proprietorship

a)

TRUE

b)

FALSE

5.
How many people can be in a partnership?
a)
2
b)
2-10
c)
2-20
d)
Unlimited
6.
Only liable for up to the amount invested into the company, and has little to no voice in management.
a)
General Partner
b)
Proprietor
c)
Limited Partner
d)
Corporation
7.

Which of the following is a disadvantage of setting up a business as a partnership?

a)

Shared losses

b)

Shared workload

c)

Shared profit

d)

More ideas generated

8.
Which of the following is an advantage of a partnership?
a)
Unlimited Liability
b)
Arguments
c)
Shared responsibility
d)
Less investors
9.
In a partnership, each partner is liable for all the debts of the business if the business fails.
a)

TRUE

b)

FALSE

10.

In a limited partnership, there are two types of partners: general partners and limited partners.

a)

TRUE

b)

FALSE

11.

There are three types of corporations commonly recognised in business which are Corporation Limited by Shares, Corporation Limited by Guarantee & Unlimited Corporation

a)

TRUE

b)

FALSE

12.
This type of organization is a legal entity separate from its owners.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
13.

What are the owners of private and public limited companies called?

a)

Stakeholders

b)

Managers

c)

Board of directors

d)

Shareholders

14.
A special form of business organization that combines advantages of a corporation and a partnership is a 
a)
franchise
b)
nonprofit corporation
c)
cooperative
d)
limited liability company
15.

The members of the board of directors of a corporation are chosen by the corporation’s is/are

a)

president and chief executive officer.

b)

creditors.

c)

general partners.

d)

stockholders.

e)

charter members.

16.

A Private Limited Company often referred to as “Berhad” (Bhd), it’s a type of corporation where ownership is privately held, typically by a small group of individuals or families.

a)

TRUE

b)

FALSE

17.

In Corporation Limited by Guarantee, member’s liability is limited to the amount they have agreed to contribute to the company’s assets in the event of its winding up.

a)

TRUE

b)

FALSE

18.

Malayan Banking Berhad (Maybank), AirAsia Berhad, Sime Darby Berhad, and Genting Malaysia Berhad are example of

a)

Public Limited Companies

b)

Private Limited Companies

19.

Any person, company or other institution which owns at least one share in a company

a)

Shareholder

b)

Stakeholder

c)

Board of Directors

d)

Broker

20.

Preference shareholders received a fixed dividend and are paid after ordinary shareholders.

a)

True

b)

False