Non-Corporate Entities

Question 1

A sole proprietorship also known as a __________

Answer 1

sole trader

Question 2

A sole proprietorship is a type of business entity that is owned and run by _______ individual

Answer 2

one

Question 3

A sole proprietorship has _____ legal distinction between the owner and the business.

Answer 3

no

Question 4

A sole proprietor can have his or her legal name as the business name. True/ False

Answer 4

True

Question 5

A sole proprietor must share their profits. True / False

Answer 5

False

Question 6

Every asset of the business is owned by the sole proprietor . True / False

Answer 6

True

Question 7

The cost of business is low. True / False

Answer 7

True

Question 8

It is easier and cheaper to start and discontinue the business. True / False

Answer 8

True

Question 9

Easier management of sole proprietor is an advantage to the business. True / False

Answer 9

True

Question 10

Raising a big capital is easy. True /False

Answer 10

False

Question 11

As a business becomes successful, the risks accompanying the business tend to grow. True / False

Answer 11

True

Question 12

Sole proprietors can operates for a long period of time. True / False

Answer 12

False

Question 13

Even if the sole proprietor dies the business will not die. True/ False

Answer 13

False

Question 14

Sole proprietors lack money which leads to failure. True / False

Answer 14

True

Question 15

An incorporated association has no legal rights at law. True / False

Answer 15

True

Question 16

Unincorporated associations are run _______________________.

Answer 16

informally

Question 17

The _____________ of an unincorporated association agreement is a written document, signed by the _____________.

Answer 17

constitution, members

Question 18

A _________________ is usually elected to run the organisation on behalf of the members.

Answer 18

management committee

Question 19

Unincorporated associations need to register with or be regulated by the Companies Act. True / False

Answer 19

False

Question 20

An unincorporated association cannot do the following:

Answer 20

Start a legal action
Borrow money
Enter into contracts in its name
Hold property

Question 21

Unincorporated associations have ______ separate legal identity, members have to sign loans and contracts as individuals and carry the risk personally

Answer 21

no

Question 22

The member can do the following actions on behalf of the association:

Answer 22

• 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