1. Organizations which combine the limited liability advantage in sole ownership are called?

A) S Type
B) Hybrid
C) PC
D) LLP



2. The partnership format might be useful to the owners of a small business in order to?

A) Share risks
B) Gain limited liability
C) Reduce taxable income
D) All of Above



3. Which of the following is true about a partnership?

A) All partners have invested an equal amount of capital
B) A partnership requires at least three people
C) Partnerships do not get favorable tax treatment compared to joint stock company (JSC)
D) All partners are personally liable for the debts of the business



4. What is the meaning of the word â??limitedâ?? in the name of a limited company?

A) The number of shareholders is limited to 50
B) The liability of the company for its own debts is limited
C) The liability of shareholders for the companyâ??s debts is limited
D) There is a limit on the amount of debts that the company can contract



5. A _______________ business is one in which income is generated by the resale of produced product?

A) Manufacturing
B) Merchandising
C) Sole Proprietorship
D) Partnership