25 Questions
A private limited liability company is a business entity where the company's shares are available to the general public.
False
The shareholders of a private limited company have unlimited liability for the company's financial risks.
False
Management of a private limited company is usually overseen by a board of directors appointed by the shareholders.
True
Private limited companies often rely on public stock offerings to raise capital.
False
One key feature of a private limited company is its high level of reporting and disclosure obligations.
False
Shares in a private limited company are usually easier to transfer compared to public company shares.
False
Cooperatives distribute profits based on the capital invested by members.
False
Cooperatives face challenges in raising capital due to limitations on external investments.
True
Democratic decision-making in cooperatives always leads to faster operational decisions.
False
The regulatory environment for cooperatives is consistent across all countries.
False
Associations are formed by individuals or organizations to achieve a common purpose.
True
Associations primarily focus on generating profits for their members.
False
Associations are typically governed by a board or committee elected by members.
True
Membership in associations is always open to all interested parties.
False
Associations engage in advocacy work to represent their members' interests.
True
Any surplus generated by associations is distributed as profits to members.
False
Shareholders of a public limited company are not liable for the company's financial obligations.
True
The board of directors of a public limited company is accountable to the government.
False
Raising capital by selling shares is a key advantage of a public limited company.
True
Foundations are allowed to distribute profits to their owners or shareholders.
False
Foundations are required to file annual financial reports and maintain transparency in their operations.
True
The purpose of a cooperative is to maximize shareholder value.
False
In a cooperative, each member has an equal vote in decision-making processes.
True
Foundations are allowed to make a profit with a company.
True
Foundations are typically funded through initial gifts and ongoing contributions from various sources.
True
Explore the features and benefits of a private limited liability company, including its ownership structure and limited liability protection for shareholders. Learn about the management hierarchy within this type of business entity.
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