What is the main characteristic of limited liability?

Liability and Business Structures Quiz

Quiz
•
Education
•
12th Grade
•
Medium
Eche Egbuonu
Used 3+ times
FREE Resource
18 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Owners are personally responsible for all business debts.
Owners' personal assets are protected from business debts.
Business debts are shared equally among all employees.
Business debts are paid by the government.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following best describes unlimited liability?
Owners' personal assets are protected from business debts.
Owners are personally responsible for all business debts.
Business debts are shared equally among all employees.
Business debts are paid by the government.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a characteristic of a sole trader?
The business is owned by multiple shareholders.
The business is owned and run by one individual.
The business is required to publish its financial statements.
The business has limited liability.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a key feature of a private limited company (Ltd)?
Shares can be sold to the general public.
Only members of the private limited company have the right to have the shares
The company has unlimited liability.
The company is owned by the government.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is an advantage of being a sole trader?
Limited liability.
Easier to raise money.
Complete control over business decisions.
Shared responsibility for business debts.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does limited liability mean for shareholders in a private limited company?
They can lose their personal assets if the company goes bankrupt.
They are only liable for the amount they invested in the company.
They are responsible for the company's debts.
They have to pay the company's taxes.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a disadvantage of a sole trader?
Limited liability.
Difficulty in raising money.
Shared decision-making.
Easy to transfer ownership.
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