F.4 Economics Book 2 Chapter 8_II_20230113

Which of the following is NOT a characteristic (特色) of a sole proprietorship?

• A. No separate legal status

• B. Unlimited liability

• C. Lasting continuity

• D. Freedom of transfer of ownership

Tom and Mary are owners of a firm. Tom borrows money on behalf of the firm (以公司名義), so Mary also has the responsibility of paying back (還款) the money and interest. The firm is

• A. a sole proprietorship.

• B. a partnership

• C. a private limited company.

• D. a public limited company.

Which of the following statements about a partnership is correct?

• A. It can have only one owner.

• B. It is a legal entity.

• C. The liability of owners is limited.

• D. It does not need to disclose its financial accounts to the public.

Brown, a sole proprietor, expands his business by forming a partnership with Cony. As a result,

• A. the firm becomes a legal entity 法人.

• B. they can have specialised management.

• C. Brown enjoys limited liability 有限負債.

• D. Brown can transfer his ownership to Sally without Cony’s consent 同意.

Peter is planning to start a bookstore. He wants to have more sources of capital but he does not want to pay a high profits tax rate. Which of the following is a good option for him?

• A. Sole proprietorship

• B. Partnership

• C. Private limited company

• D. Public limited company

Dai Fat is a firm owned by 100 persons. It cannot invite public subscription for its shares (不能公開招股). Dai Fat is

• A. a listed company.

• B. a partnership.

• C. a private limited company.

• D. a public limited company.