Test on Forms of Business Ownership
Forms of Business Ownership: A Student's Guide
Test: Forms of Business Ownership
20 questions
Question 1: Decisions are typically made quickly in a partnership as all partners generally agree on the direction of the business.
A. Ano
B. Ne
Explanation: Decisions in a partnership take time as partners may differ on matters concerning the business.
Question 2: Non-profit companies primarily raise capital by selling shares to the public.
A. Ano
B. Ne
Explanation: The study materials state that Non-Profit Companies (NPOs) can get funding from the National Lottery Trust and other agencies. They do not mention raising capital by selling shares to the public; this method is typically associated with Public Companies (LIMITED or LTD).
Question 3: Shares in a cooperative are not freely transferable.
A. Ano
B. Ne
Explanation: The study materials indicate under the disadvantages of Cooperatives that 'SHARES are not FREELY TRANSFERABLE'.
Question 4: The establishment procedure for cooperatives is simple.
A. Ano
B. Ne
Explanation: Cooperatives have a complicated establishment procedure.
Question 5: It is difficult for a State Owned Company to raise capital because its shares are limited.
A. Ano
B. Ne
Explanation: State Owned Companies experience difficulty in raising capital due to the limited nature of their shares.