Answer the following questions and then press 'Submit' to get your score.
Question 1
Which one of the following is an unincorporated organisation?
a) General partnership.
b) Limited liability partnership.
c) Public limited company.
d) Private limited company.
Question 2
The maximum number of persons who are legally allowed to operate in a partnership is:
a) 2
b) 20
c) There is no legal limit
d) 100
Question 3
A partner who is entitled to a share of the profits from a partnership is known as:
a) A salaried partner.
b) A managing partner.
c) An equity partner.
d) A limited liability partner.
Question 4
The Partnership Act 1890 section 24 sets out rights of partners (in default of their own agreement). Which one of the following is not included in section 24?
a) The right to take part in the management of the business.
b) The right to a salary.
c) The right to share equally in the capital and profits of the business.
d) The right to be indemnified by the firm for any liabilities incurred or payments made in the course of the firm's business.
Question 5
Limited liability partnerships were introduced by which Act of Parliament?
a) Limited Partnership Act 1907.
b) Limited Liability Partnership Act 2000.
c) Partnership Act 2000.
d) Companies Act 2006.
Question 6
Which one of the following statements about limited liability partnerships (LLPs) is incorrect?
a) An LLP has a legal personality separate from that of its members.
b) The liability of each partner in an LLP is limited.
c) Members of an LLP are taxed as partners.
d) A limited company can convert to an LLP.
Question 7
Which of the following is not a method of creating a company?
a) A written agreement made by the directors.
b) Registration under the Companies Act 2006.
c) Act of Parliament.
d) Grant of Royal Charter.
Question 8
A Community Interest Company (CIC) can be set up as which of the following?
a) A private company limited by guarantee only.
b) A private company limited by shares or a private company limited by guarantee only.
c) A private or public company limited by shares or a private company limited by guarantee.
d) None of the above, it is a type of partnership.
Question 9
Sparkle Ltd is a private limited company limited by shares. It has one director. How many shareholders does the law require it to maintain?
a) One provided it is a different person from the director.
b) Five.
c) Two.
d) One which can be the same person as the director.
Question 10
An organisation running a business has the following attributes: the assets belong to the organisation, it can create a floating charge over its assets, change in membership does not alter its existence, and members cannot transfer their interests to others. What type of organisation is it?
a) A private limited company
b) A limited liability partnership
c) A general partnerships
d) A private limited company