Principles of Management Module BM1012

False (B)

General partnerships and limited partnerships

<p>hierarchical</p> Signup and view all the answers

<p>Sole Proprietorship = Unlimited Liability General Partnership = Equal management and liability sharing Limited Partnership = Limited liability for some partners Taxation = Profits passed through to personal income tax</p> Signup and view all the answers

<p>Limited liability for owners (D)</p> Signup and view all the answers

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

<p>Private Limited Companies and Public Limited Companies</p> Signup and view all the answers

<p>income</p> Signup and view all the answers

<p>No consent required for share transfer (B), Shares can be easily transferred (D)</p> Signup and view all the answers

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

<p>Donations, fundraising activities, or membership fees</p> Signup and view all the answers

<p>Private Limited Companies = Shares not for sale to the public Public Limited Companies = Shares can be offered to the public</p> Signup and view all the answers

<p>Profit maximization (A)</p> Signup and view all the answers

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

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

<p>unlimited</p> Signup and view all the answers

<p>Sole Proprietorship = Owned by one person Partnership = Owned by two or more individuals Company = Legal entity separate from owners Non-profit Organization = Operates for a charitable purpose</p> Signup and view all the answers

<p>Personal income tax (B)</p> Signup and view all the answers

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

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

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

<p>Shared responsibility and access to diverse skills and resources.</p> Signup and view all the answers

<p>unlimited</p> Signup and view all the answers

<p>General Partnership = Contributes capital and expertise, unlimited liability Limited Partnership = Contributes only capital, limited liability, no management Unlimited Liability = Personal assets risked for business debts Limited Liability = Liability is limited to investment only</p> Signup and view all the answers

<p>Conflict risks due to differing opinions (A)</p> Signup and view all the answers

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

<p>Companies Act no 07 of 2007</p> Signup and view all the answers

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The owner has complete control over all business decisions and operations.

The owner is personally responsible for all business debts and legal issues, putting their personal assets at risk.

Simple business structure with quick decision-making due to the lack of a complex hierarchy.

Two or more individuals share ownership, responsibilities, and profits in a business.

A formal agreement outlining the roles, responsibilities, profit-sharing, and decision-making processes of all partners.

A group of individuals working collectively to fulfill customer needs and desires by producing goods or services, with the primary objective of maximizing profits.

A type of business structure owned and managed by a single person, where the owner assumes all responsibilities and risks.

A legal entity separate from its owners, with its own legal rights and responsibilities.

Organizations focused on social good and achieving specific missions, not maximizing profits.

The owner is personally liable for all business debts and obligations.

Business profits are reported and taxed as the owner's personal income.

The owner retains all profits earned by the business.

A type of partnership where all partners have unlimited liability for business debts. Their personal assets are at risk, and they are actively involved in managing the business.

A type of partnership where partners (limited partners) only contribute capital and have limited liability, meaning their personal assets are protected. They cannot actively manage the business.

The legal principle that a partnership (or any other business structure) doesn't have its own separate identity from its owners. Therefore, the owners are individually responsible for the partnership's debts.

The advantage of partnerships where responsibilities are shared among partners, leveraging individual expertise and skills to create synergy.

The risk in partnerships where partners are fully liable for business debts, even if they weren't the ones directly responsible.

The potential for disagreements and conflicts among partners, impacting decision-making and potentially creating obstacles for the business.

An advantage of partnerships with easier access to funds due to contributions from multiple partners.

A type of business structure that combines the limited liability of a corporation with the pass-through taxation of a partnership, offering owners (members) protection from personal liability while allowing profits to be taxed at the individual level.

Owners of an LLC are called members, and they have limited liability, meaning their personal assets are protected from business debts and obligations.

LLCs offer flexibility in structuring management and profit distribution, allowing members to customize arrangements that align with their specific needs.

Profits earned by an LLC are passed through to the members' personal income tax returns, avoiding double taxation at the corporate level.

A type of limited company where the number of shareholders is restricted to a maximum of 50, and shares cannot be offered for sale to the general public.

A type of limited company with no limit on the number of shareholders, allowing them to offer shares for sale to the general public.

Organizations that focus on specific social causes and may earn revenue through donations, fundraising, membership fees, or selling products/services, often serving the public or their members.

The tendency of people to engage in actions that are aligned with the goals and objectives of a specific organization or entity.