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What Is a Share?

Limited liabi...

Question

Limited liability is enjoyed by ________.

A

a general partnership

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B

a corporation

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C

a sole proprietorship

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D

none of the above

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Solution

The correct option is B a corporation
A corporation is a group of people or company authorized to act as a legal entity which is recognized by Law. It has a limited liability distinct from its members. The owner and the company are two different persons.

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Q. Fill in the blanks:
(a) Sole proprietorship is the _______ from of business enterprises, (latest / oldest)
(b) Sole proprietorship is most suitable form for _______ business, (small / large)
(c) Liability of a sole proprietor is ________ (limited / unlimited)
(d) Sole proprietorship _______ a separate legal entity, (has / does not have)
(e) It is ______ to set up a sole proprietorship firm,(easy / difficult)

Q. Answer is Yes or No:
(a) The sole proprietor is the exclusive master of his business.
(b) The liability of a sole proprietor is limited.
(c) A sole proprietorship has no legal existence apart from its owner.
(d) Sole proprietorship is the oldest form of business organisation.
(e) It is difficult to set up a sole proprietorship.

What is the liability of a sole proprietorship?

Q. A limited liability partnership is a body corporate with legal personality.

A partnership is the best option to overcome various limitations of sole proprietorship in terms of capital employed, managerial skills etc.

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