BCLAW Ch 7 Business Org

A sole proprietor has ___ for the debts of the sole proprietorship.

• unlimited liability

• liability limited by shares

• liability limited by gurantee

• joint and several liability

In a partnership, each partner has ___ for partnership debts.

• liability limited by shareholding

• liability limited by gurantee

• unlimited joint and several liability

• no liability

A partnership is also known as a ___.

Which of the following business organisation is a separate legal entity at law?

• Sole Proprietorship

• Company

• Partnership

A ___ company is a company whose constitution restricts the right of their members to transfer company shares and imposes a cap of 50 members at any point in time.

• Public Company

• Small Company

• Related Company

• Private Limited Company

What type of company is able to raise finance from the public generally by selling shares at an exchange?

• Private company

• Public company

• Exempt Private Company

• Small Company

Which of the following do NOT apply to exempt private companies?

• It is a public company.

• It is a private company.

• It does not have more than 20 members.

• It is exempted from filing financial statements with ACRA.

Which of the following do NOT apply for a Small Company?

• The total annual revenue does not exceed $10m

• The total assets does not exceed $10m

• The total number of employees does not exceed 60

• There is audit exemption

The owner of a company is not personally liable for the debts of the company. True or false?

• True

• False

A holding company either controls the composition of the board of directors in the subsidiary or controls more than half of the voting power in the subsidiary. True or false?

• True

• False