Non-Corporate Entities Flashcards
A sole proprietorship also known as a __________
sole trader
A sole proprietorship is a type of business entity that is owned and run by _______ individual
one
A sole proprietorship has _____ legal distinction between the owner and the business.
no
A sole proprietor can have his or her legal name as the business name. True/ False
True
A sole proprietor must share their profits. True / False
False
Every asset of the business is owned by the sole proprietor . True / False
True
The cost of business is low. True / False
True
It is easier and cheaper to start and discontinue the business. True / False
True
Easier management of sole proprietor is an advantage to the business. True / False
True
Raising a big capital is easy. True /False
False
As a business becomes successful, the risks accompanying the business tend to grow. True / False
True
Sole proprietors can operates for a long period of time. True / False
False
Even if the sole proprietor dies the business will not die. True/ False
False
Sole proprietors lack money which leads to failure. True / False
True
An incorporated association has no legal rights at law. True / False
True
Unincorporated associations are run _______________________.
informally
The _____________ of an unincorporated association agreement is a written document, signed by the _____________.
constitution, members
A _________________ is usually elected to run the organisation on behalf of the members.
management committee
Unincorporated associations need to register with or be regulated by the Companies Act. True / False
False
An unincorporated association cannot do the following:
Start a legal action
Borrow money
Enter into contracts in its name
Hold property
Unincorporated associations have ______ separate legal identity, members have to sign loans and contracts as individuals and carry the risk personally
no
The member can do the following actions on behalf of the association:
- Take on employees
- Raising finance, applying for grants or opening a bank account
- Entering into large contracts
- Taking on a lease or buying freehold property
