#1
Which of the following is a characteristic of a sole proprietorship?
Limited liability
Separate legal entity
Single ownership
Double taxation
#2
What is a disadvantage of a sole proprietorship?
Limited liability
Difficulty in raising capital
Separation of ownership and control
Ease of formation
#3
Which of the following is a characteristic of a limited liability partnership (LLP)?
Unlimited liability for all partners
Separate legal entity
Limited liability for all partners
Double taxation
#4
What is the main advantage of a sole proprietorship?
Limited liability
Ease of formation
Separation of ownership and control
Access to more capital
#5
Which of the following is a characteristic of a partnership?
Limited liability
Separate legal entity
Single ownership
Double taxation
#6
What is a disadvantage of a partnership?
Limited liability
Difficulty in raising capital
Ease of formation
Separation of ownership and control
#7
In a general partnership, who bears unlimited liability?
All partners
Only managing partners
Only limited partners
None of the partners
#8
Which type of partnership allows partners to have limited liability?
General partnership
Limited partnership
Limited liability partnership
Joint partnership
#9
What is a 'silent partner' in a partnership?
A partner who does not participate in the management of the business
A partner who invests silently without contributing ideas
A partner who does not share profits
A partner who does not contribute financially
#10
In a limited partnership, who bears unlimited liability?
All partners
Only managing partners
Only limited partners
None of the partners
#11
What is the main difference between a general partnership and a limited partnership?
Number of partners
Liability of partners
Profit sharing ratio
Nature of business
#12
Which type of partnership is often formed by professionals such as lawyers or accountants?
General partnership
Limited partnership
Limited liability partnership
Joint partnership
#13
Which of the following is an advantage of a partnership?
Unlimited liability
Ease of formation
Separation of ownership and control
Double taxation
#14
What is a joint partnership?
A partnership formed by two individuals only
A partnership formed by multiple businesses
A partnership formed by two or more partnerships
A partnership formed by two or more parties for a specific project
#15
Which type of partnership typically has partners with specialized skills or expertise?
General partnership
Limited partnership
Limited liability partnership
Joint partnership
#16
In a limited partnership, what is the role of limited partners?
They manage the business
They have unlimited liability
They only contribute capital and have limited liability
They have no liability
#17
What is the main difference between a limited partnership and a limited liability partnership (LLP)?
Number of partners
Liability of partners
Profit sharing ratio
Nature of business