The primary types of business frameworks recognized in India include ___, ___, and ___. | Card: 1 / 30 |
True or False: The regulation of legal entities aims solely to promote competition among businesses. | Card: 3 / 30 |
False. The regulation also aims to protect the rights of stakeholders and ensure transparent functioning. | Card: 4 / 30 |
To establish a framework for the creation, management, and dissolution of organizations while protecting stakeholder interests and ensuring fair functioning. | Card: 6 / 30 |
Unlimited liability, meaning the owner is personally responsible for all business debts and obligations. | Card: 8 / 30 |
True or False: A sole proprietorship requires formal registration to be established. | Card: 9 / 30 |
False. A sole proprietorship does not require formal registration and is established easily by an individual. | Card: 10 / 30 |
Key advantages of a sole proprietorship include quick decision-making, confidentiality, full control, profit retention, ease of formation, and tax benefits with income taxed at the owner's rate. | Card: 12 / 30 |
False. A partnership does not have a separate legal identity from its partners; the business operates under the shared name of the partners and is collectively referred to as a 'firm.' | Card: 14 / 30 |
A successful partnership allows partners to combine their efforts and resources, but it also involves ___ for losses incurred by other partners. | Card: 15 / 30 |
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True or False: In a Limited Liability Partnership (LLP), partners have unlimited personal liability for the debts of the partnership. | Card: 17 / 30 |
False. In an LLP, partners have limited liability, meaning they are not personally responsible for the debts of the partnership beyond their investment. | Card: 18 / 30 |
Limited Liability Partnerships (LLPs) provide partners with ___ protection from the business's debts and liabilities. | Card: 19 / 30 |
True or False: In an LLP, partners have joint liability for the actions of other partners. | Card: 21 / 30 |
False. Partners in an LLP are only liable up to their agreed contribution and do not have joint liability for the actions of other partners. | Card: 22 / 30 |
A public limited company is defined under Section 2(71) of the Companies Act, 2013, as a company that is not a ___ company. | Card: 23 / 30 |
True or False: Shareholders of a public limited company have unlimited liability for the company's debts. | Card: 25 / 30 |
False. Shareholders have limited liability, meaning their responsibility for the company’s debts is limited to the amount they invested. | Card: 26 / 30 |
A legal entity is recognized by law as having certain rights and responsibilities, including the ability to ___ and be ___. | Card: 27 / 30 |
True or False: Choosing the right business structure does not affect taxes or personal liability. | Card: 29 / 30 |










