F.4 Economics Book 2 Chapter 8_III_20230117

How many owners can be found in a sole proprietorship?

• One

• Two

• Three

• Four

The minimum amount of owners in a partnership is _____________.

• one

• two

• three

• four

Which of the following is NOT a common features of sole proprietorship and partnership?

• unlimited liability

• no need to disclose the financial account to public

• lower profit tax rate

• separate legal entity

Which of the following is an advantage of sole proprietorship over partnership?

• more sources of capital

• limited liability

• more flexible decision making

• separate legal entity

Which of the following is an advantage of a partnership over a sole proprietorship?

• limited liability

• more sources of capital

• no need to disclose financial account to public

• free to transfer the ownership

You need to obtain a _________________________ for setting up a sole proprietorship or partnership.

• Hong Kong Identity Card

• HKSAR passport

• Certificate of incorporation

• Business registration certificate

Profit tax rate under $2 million of sole proprietorship or partnership is ________________ .

• 4.5%

• 5.5%

• 6.5%

• 7.5%

Peter prefer to set up a partnership instead of a sole proprietorship because _________________________.

(1) specialization in management is possible

(2) more sources of capital

(3) better decision can be made

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Unlimited liability means that you need to bear the owner's liability can be ___________________ the amount invested in the company.

• greater than

• smaller than

• equal to

• None of the above

Fairwood fast food shop is a _________________________.

(1) public enterprise

(2) private enterprise

(3) sole proprietorship

(4) public limited company

• (1) and (3) only

• (1) and (4) only

• (2) and (3) only

• (2) and (4) only