Business Structures Quiz

<p>Time-consuming establishment process and on-going filing requirements (C)</p> Signup and view all the answers

<p>Limited liability (C)</p> Signup and view all the answers

<p>Sole proprietorship (B)</p> Signup and view all the answers

<p>LLP Agreement (C)</p> Signup and view all the answers

<p>Unlimited liability (A)</p> Signup and view all the answers

<p>Sole Proprietorship (C)</p> Signup and view all the answers

<p>The transfer is not possible (B)</p> Signup and view all the answers

<p>Sole Proprietorship (D)</p> Signup and view all the answers

<p>It is subject to the restrictions in the LLP Agreement. (D)</p> Signup and view all the answers

<p>Company (B)</p> Signup and view all the answers

<p>Shares can transfer to a third party, subject to the restrictions in the articles of association (A)</p> Signup and view all the answers

<p>General Partnership (C)</p> Signup and view all the answers

<p>The business will cease. (C)</p> Signup and view all the answers

<p>The name and address of each member (C)</p> Signup and view all the answers

<p>A note stating that it has only one member (A)</p> Signup and view all the answers

<p>Keep an index of the members’ names (D)</p> Signup and view all the answers

<p>Members and the general public for a fee (D)</p> Signup and view all the answers

<p>Details of persons with significant control over the company (A)</p> Signup and view all the answers

<p>1 member (B)</p> Signup and view all the answers

<p>£50,000 (B)</p> Signup and view all the answers

<p>1 (B)</p> Signup and view all the answers

<p>plc (B)</p> Signup and view all the answers

<p>They must hold an AGM (B)</p> Signup and view all the answers

<p>Public companies can trade shares publicly (C)</p> Signup and view all the answers

<p>They need a certificate stating minimum share capital (A)</p> Signup and view all the answers

<p>Hold Annual General Meetings (B)</p> Signup and view all the answers

<p>75% (C)</p> Signup and view all the answers

<p>Article 17 (D)</p> Signup and view all the answers

<p>Register the amendment within 15 days (C)</p> Signup and view all the answers

<p>It will not be effective until registered (D)</p> Signup and view all the answers

<p>Article 23 (D)</p> Signup and view all the answers

<p>If specified conditions or procedures are met (B)</p> Signup and view all the answers

<p>15 days (C)</p> Signup and view all the answers

<p>Meeting organization and validity conditions (B)</p> Signup and view all the answers

<p>A dividend given after the annual accounts have been drawn up (D)</p> Signup and view all the answers

<p>Any distribution of assets, either in cash or otherwise, to members (C)</p> Signup and view all the answers

<p>It must come from profits available for distribution (A)</p> Signup and view all the answers

<p>Members who knew of the unlawfulness may need to repay the sum (D)</p> Signup and view all the answers

<p>The directors and the company secretary, if appointed (A)</p> Signup and view all the answers

<p>It can be kept with the Registrar of Companies instead of maintaining a separate one (D)</p> Signup and view all the answers

<p>Details of the membership at the Registrar will discontinue (C)</p> Signup and view all the answers

<p>10 years from the date they ceased membership (B)</p> Signup and view all the answers

A business structure where one person owns and operates the entire business, assuming all profits and unlimited liability for debts.

A business structure with two or more individuals who share profits and losses, with each partner having unlimited liability for the business's debts.

A legal structure where the business is separate from its owners, offering limited liability protection for its members. This means their personal assets are shielded from business debts.

A legal structure where the business is a separate entity from its owners, offering limited liability protection for its shareholders. This means their personal assets are protected from business debts.

The legal document outlining the framework of a company, including ownership structure, shareholder rights, and responsibilities.

An agreement outlining the terms of a partnership, including profit sharing, decision-making, and liability distribution.

An agreement defining the rights and responsibilities of the members of a Limited Liability Partnership (LLP).

A contract specifying the rights and obligations of shareholders in a Limited Liability Company (LLC).

A company whose shares are traded on a stock exchange.

A public company whose shares are not traded on a stock exchange.

A public company that has chosen to no longer have its shares traded on a stock exchange.

A company owned and controlled by a small group of individuals.

A legal requirement specifying the minimum amount of capital a public company must have.

The minimum number of individuals required to form a company.

The amount of share capital that must be paid up by the shareholders.

A formal meeting of the shareholders of a company.

A business structure where the owner is personally liable for all debts and obligations. Its continuity is tied to the owner: if the owner dies, goes bankrupt, or leaves the business, the sole proprietorship ceases to exist.

A business structure where partners are personally liable for debts. The death or bankruptcy of a partner dissolves the partnership. Transferring partnership ownership requires all partners' agreement.

A business structure where partners are not personally liable for debts beyond their investment. The bankruptcy, death, or departure of a partner does not affect the LLP's existence.

A business structure with separate legal personality from its owners. Its continuity is not affected by the death, bankruptcy, or departure of a shareholder.

In a sole proprietorship, the business is considered the owner's personal asset and can be freely transferred like any other personal property.

In a general partnership, the business is an asset owned collectively by the partners. Transferring ownership requires the agreement of all partners. An individual partner cannot sell their share without the others' consent.

In an LLP, the business is an asset of the LLP itself. A member can transfer their interest to a third party, subject to restrictions in the LLP Agreement.

The business of a company is an asset of the company, not its owners. A shareholder can transfer ownership of their shares to a third party.

A company with a share capital must maintain a record of its members, including their names, addresses, and shareholdings.

The register must contain details about the date each member joined and left the company.

This includes the number and type of shares each member owns, as well as how much they have paid for them.

If a company is owned by just one person, the register must specifically mention this.

A company with over 50 members must create an index to easily locate member information.

The company's directors are responsible for making decisions and managing the company, including appointing new directors

Articles of Association include provisions for creating different classes of shares, like ordinary shares or preference shares, with distinct rights and benefits.

The Articles govern how company meetings are conducted, including the required notice period and voting procedures.

A special resolution requires at least 75% of the members to approve it, providing a higher level of consensus.

Amendments to a company's Articles of Association must adhere to specific procedures and registration requirements to be valid

A provision for entrenchment in the Articles makes it harder to amend specific provisions, requiring special conditions or procedures to be met.

Entrenched provisions make it more difficult to change key aspects of a company's structure, ensuring stability and consistency. They are often used to safeguard fundamental aspects.

A dividend paid after the company's annual accounts have been finalized, typically for a 12-month period.

Any way a company shares its assets with its members, whether it's cash or something else.

The source of funds for distributions to members. This includes accumulated profits (minus already utilized profits) and less accumulated losses (minus already written off losses).

A member who knew or should have known that a distribution was unlawful is responsible for repaying the company.

Directors who recommended an unlawful distribution may be liable to the company for any losses.

A private company can choose to keep its members' details with the Registrar of Companies instead of maintaining its own register. This information is publicly available.

If a private company stops being private or chooses to keep its own register, the details will be removed from the Registrar of Companies.