Forms Of Business Organization - JSS1 Business studies Past Questions and Answers - page 2
What is a common advantage of cooperative societies?
Shared decision-making
Unlimited liability
Limited access to capital
Which form of business organization has the potential for conflicts among members?
Limited Liability Company
Sole Proprietorship
Cooperative Society
Which business structure typically involves pass-through taxation?
Sole Proprietorship
Partnership
Limited Liability Company
What is a primary disadvantage of limited liability company (LLC)?
Limited liability
Complexity in formation and operation
Flexibility in management
Which form of business organization offers the least amount of regulatory requirements?
Partnership
Limited Liability Company
Sole Proprietorship
What is the main advantage of a sole proprietorship?
The main advantage of a sole proprietorship is that it offers easy decision-making and direct control over operations to the owner.
How does a partnership differ from a sole proprietorship?
A partnership differs from a sole proprietorship in that it involves two or more individuals who share ownership, profits, and decision-making in the business.
What are the key features of a limited liability company (LLC)?
The key features of an LLC include limited liability for owners, flexible management structure, pass-through taxation, and separate legal entity status.
What is the primary goal of cooperative societies?
The primary goal of cooperative societies is to meet the common economic, social, or cultural needs of their members through voluntary association and democratic control.
How does a cooperative society differ from a partnership?
A cooperative society differs from a partnership in that it is formed to serve the collective interests of its members rather than solely for profit-making purposes. Cooperative societies also typically involve democratic decision-making among members.