1. Which of the following represent advantages of a sole proprietorship?
i) Limited liability of members
ii) Owner has total decision-making authority
iii) Simple to create
iv) Ability to raise large amounts of capital
a. ii, iii
b. i, iii
c. iii, iv
d. i, iii
e. i, ii, iii
2. Which of the following is not an advantage of a partnership?
a. Ease of formation
b. Diversification of skills and abilities of partners
c. Increased opportunity for accumulation of capital
d. Easy to discontinue
e. Minimal legal formalities and regulations
3. A properly drawn-up business plan should contain which of the following outlines?
i) Detailed outline of the proposed business enterprise
ii) Outline of the proposed marketing plan and strategy
m
er as
iii) Outline of the financial statements of the previous year
iv) Outline of the business operating plan and strategy
co
eH w
a. i, ii, iii
o.
b. i, ii, iv rs e
c. i, iii, iv
d. ii, iii, iv
ou urc
e. i, ii, iii, iv
o
4. Which of the following statements is not true regarding a close corporation?
a. Member’s personal assets in their private estates are not at risk
aC s
b. Is a legal personality
v i y re
c. Members both own and control the business
d. Capital acquisition is higher than in a partnership
e. There can be more than 10 members
ed d
5. Which of the following is an internal stakeholder in a business plan?
a. banks
ar stu
b. customers
c. investors
d. shareholders
sh is
e. employees
Th
6. Which of the following represents similarities between a sole proprietorship and a partnership?
i) Continuity of existence
ii) Possibility of acquiring capital
iii) Liability of the owners
iv) Tax liability
a. i, ii & iii
b. i, ii & iv
c. i, iii & iv
d. ii, iii & iv
e. ii, iv
1
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https://www.coursehero.com/file/94321823/MCQs-ch-3docx/
i) Limited liability of members
ii) Owner has total decision-making authority
iii) Simple to create
iv) Ability to raise large amounts of capital
a. ii, iii
b. i, iii
c. iii, iv
d. i, iii
e. i, ii, iii
2. Which of the following is not an advantage of a partnership?
a. Ease of formation
b. Diversification of skills and abilities of partners
c. Increased opportunity for accumulation of capital
d. Easy to discontinue
e. Minimal legal formalities and regulations
3. A properly drawn-up business plan should contain which of the following outlines?
i) Detailed outline of the proposed business enterprise
ii) Outline of the proposed marketing plan and strategy
m
er as
iii) Outline of the financial statements of the previous year
iv) Outline of the business operating plan and strategy
co
eH w
a. i, ii, iii
o.
b. i, ii, iv rs e
c. i, iii, iv
d. ii, iii, iv
ou urc
e. i, ii, iii, iv
o
4. Which of the following statements is not true regarding a close corporation?
a. Member’s personal assets in their private estates are not at risk
aC s
b. Is a legal personality
v i y re
c. Members both own and control the business
d. Capital acquisition is higher than in a partnership
e. There can be more than 10 members
ed d
5. Which of the following is an internal stakeholder in a business plan?
a. banks
ar stu
b. customers
c. investors
d. shareholders
sh is
e. employees
Th
6. Which of the following represents similarities between a sole proprietorship and a partnership?
i) Continuity of existence
ii) Possibility of acquiring capital
iii) Liability of the owners
iv) Tax liability
a. i, ii & iii
b. i, ii & iv
c. i, iii & iv
d. ii, iii & iv
e. ii, iv
1
This study source was downloaded by 100000830886948 from CourseHero.com on 10-03-2021 14:51:33 GMT -05:00
https://www.coursehero.com/file/94321823/MCQs-ch-3docx/
