Tamil Nadu (English Medium) Plus 2 Commerce Study Materials, Online Learning, Question Papers, Classnotes, Practice Test, MCQ | Smartindia Educational Program : www.smartindia.net.in

Question-1 A written partnership agreement should show

(A) Profit and Loss sharing ratio	(B)Arrangements on the retirement or death of a partner
(C)The contribution of cash and other assets made by each partner	(D)All of these

Question-2 Which financial statement is concerned with the enterprise over a period of time?

(A) Statement of cash flows and Income statement	(B)Balance sheet
(C)Trading Account	(D)All of these

Question-3
Which of these is a disadvantage of operating as a Sole Trader?

(A) Low start-up costs	(B) Total control by the owner over all decisions
(C) Being unincorporated	(D) All profits going to the owner

Question-4
Sole trader is a common form of business structure among

(A) Hairdressers	(B) Electricians
(C) Bakery business	(D) All of these

Question-5
The business structure that protect the personal assets of the owners from the creditors of the business are:

(A) Trust and partnership	(B) Company and Trust
(C) Company and Sole trader	(D) Partnership and Company

Question-6 Which of the following statement is correct?

(A) Public companies have Ltd after their name	(B)Public companies can offer their shares for sale to the public
(C)Public companies do not have perpetual life	(D)Both (a) and (b) are correct

Question-7
A form of business structure which involves a trustee holding assets for the benefit of other parties is known as a

(A) Proprietary company	(B) No-liability company
(C) Trust	(D) All of these

Question-8 Decision-making process in sole trading business is

(A) Quick	(B)Slow
(C)Neither Quick or slow	(D)None of these

Question-9 A company has the status of a legal entity. This means

(A) It can enter into contracts in its own name	(B)It is a separate tax paying entity
(C)It can sue and be sued	(D)All of the above

Question-10 Sole proprietorship is suitable for

(A) Large scale concerns	(B)Medium scale concerns
(C)Small scale concerns	(D)All of the above

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Plus 2 Commerce

Tamil Nadu (English Medium)

Practice in Related Chapters
Organisation
Sole Trader
Partnership
Joint Stock Companies -I
Joint Stock Companies II
Government in Business
Stock Exchange
Co-operatives