Module 4 Quiz – US 120344

Question 1

True or False

A sole trader business and its owner are considered the same legal person.

Question 2

A sole trader has limited liability for the debts of the business.

Question 3

True or False

Partnerships are usually created using a Deed of Partnership.

Question 4

True or False

In traditional partnerships, partners have unlimited liability for business debts.

Question 5

True or False

A company is legally separate from its shareholders.

Question 6

True or False

Shareholders are always fully responsible for all company debts.

Question 7

True or False

An organisational chart shows the financial profits of a company.

Question 8

True or False

The Memorandum of Association regulates a company’s relationship with the outside world.

Question 9

True or False

The Articles of Association deal with a company’s internal management procedures.

Question 10

True or False

Shareholders’ agreements must always be made public.