Ch 1 - Types of Business Units

This business form may have one but less than 50 owners.

• Sole Proprietorship

• Limited liability partnership

• Private Limited Company

• Partnership

Which of the following has unlimited liability?

• Sole Proprietorship

• Limited Liability Partnership

• Private Limited Company

• Limited Company

Which business form is most accessible to funds for the business?

• Sole Proprietorship

• Limited Liability Company

• Private Liability Company

• None of the above

When the business incurs debts and losses, the __________ is / are obliged to pay them using his / their personal assets.

• Sole trader

• partners

• shareholders

• customer

One disadvantage of this business form is that it has many statutory requirements and is difficult to set up.

• Limited Liability Partnership

• Private Limited Company

• Sole Proprietorship

• Small business

To transfer ownership, all the owners must agree before transfer can be done.

• Limited Company

• Private Limited Company

• Limited Liability

  Partnership

• Sole Trader

The owners have no control over the business unless they are part of the management team.

• Limited Liability Partnership

• Sole Proprietorship

• Partnership

• Limited liability company

This business form can raise capital through the issue of shares.

• Limited Liability Partnership

• Private Limited Company

• Sole Proprietorship

• Partnership