Q.1
Which of the following is the limitation of the Sole trader?
  • Unlimited liability
  • Limited source of capital
  • Unbalanced management
  • All of the above
Q.2
Profits do not have to be shared. This statement refers to
  • Partnership
  • Joint Hindu family business
  • Sole proprietorship
  • Company
Q.3
Sole proprietorship is more suitable for large-scale business.
  • True
  • False
Q.4
A sole proprietor has
  • Limited liability
  • Unlimited liability
  • No liability for debts
  • Joint liability
Q.5
One disadvantage of sole proprietorship includes
  • owner keeps all the profit
  • owner has complete control
  • no legal requirements to set up
  • personalized services to customers
  • owners have unlimited liability
Q.6
Which is the simplest form of business organization?
  • sole proprietorship
  • partnership
  • franchise
  • none of the above
Q.7
The minimum number of persons required to form a partnership is
  • 1
  • 2
  • 5
  • 10
Q.8
Stephen and Mike start a consulting service to help businesses manage their trademarks and patents. They are the only partners, sharing equally in the work, profits, and losses.
  • Limited Partnership
  • Limited Liability Partnership
  • General Partnership
Q.9
Rosa and Serena carefully review expansion plans after new partners provide extra funds. However, they know that they remain fully liable if their decisions are not sound.
  • Limited Liability Partnership
  • Limited Partnership
  • General Partnership
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