5 Questions
What is the meaning of sole trading business? Discuss its merits and demerits.
Sole trading business refers to a business owned and operated by a single individual. Merits include full control and quick decision-making, while demerits include unlimited liability and limited financial resources.
What is a partnership? Explain its merits and demerits.
A partnership is a business structure where two or more individuals manage and operate a business together. Merits include shared decision-making and pooled resources, while demerits include unlimited liability and potential conflicts.
Distinguish between private company and public company.
Private companies have restrictions on the transfer of shares and a limited number of shareholders, while public companies can freely transfer shares and have a large number of shareholders.
What is a memorandum of association? Describe its clauses.
A memorandum of association is a legal document that sets out the company's constitution, its objectives, and scope of operations. Clauses include the company's name, registered office, and objectives.
Define preference shares. Explain the types of preference shares.
Preference shares are shares that give their holders the right to receive dividends before ordinary shareholders. Types include cumulative preference shares, non-cumulative preference shares, redeemable preference shares, and participating preference shares.
Test your knowledge of business concepts with these essay questions related to sole trading, partnership, private and public companies, memorandum of association, prospectus, and business finance. Questions are based on past exam papers.
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