MGT211 Midterm Past Paper 3

MGT211 Mid Term

What is potentially the biggest advantage of a small partnership over a sole proprietorship?

Unlimited liability Single tax filing Difficult ownership resale

Raising capital

Which of the following enjoys limited liability?

A general partnership

A corporation

A sole proprietorship None of the given options

In which type of business entity the entire ownership interest is transferable most freely?

General partnership Limited partnership Corporation

Limited liability company

A Pizza delivery service company generated after tax earnings of Rs. 800,000. With total stockholder investments equaling Rs. 20,00,000. What was the company's return on equity?

1. 10%
2. 15%

MGT211 Mid Term

c) 40%

d) 80%

Components of Business Plan include all of the following except

a) Marketing Component b) Administrative Component

c) External Component

d) Financial Component An agreement between two parties in which one party possess the rights to the other party is a) Partnership b) Strategic Alliance c) Joint venture

d) Franchising

The shareholders elect the Board of Directors in the

a) Through special resolution

b) In annual general meeting

c) In Special meeting d) In statuary meeting

Portion of the undistributed profit transferred to which of the following?

1. General Reserve
2. Retained Earning
3. Appropriation account

MGT211 Mid Term

d) All of the given options

Brief history, Auditor’s report, shareholders’ equity and liabilities, share capital, etc are mention in which of the document?

1. Charter of Company
2. Article of Association
3. Prospectus
4. None of the given option

Correct answer: Prospectus

A joint stock company may be wound up voluntarily in which of the following way:

a) Expiry of Period

b) Fails to submit statutory report c) Fails to start its business within one year from the date of incorporation d) All of the following Capital is required for the purchase of land, machines, wages and raw materials. A businessman can generate its capital from: a) Debt b) Equity c) None of the above

d) All of the given option

Cooperative Societies are not formed for:

a) The serving of the orphans and widows b) The help of poor people