F.4 ECON_Book 2 Chapter 8_sole proprietorship

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

Mr Wong sets up an online book store. He has unlimited liabilities (無限負債) . Which of the following is a possible way for him to raise money (集資) for his business?

• A. Borrow money from his family

• B. Issue shares 發行股票

• C. Issue bonds 發行債券

• D. All of the above

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 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 .法人地位

• B. they can have specialised management.專門管理

• C. Brown enjoys limited liability.有限負債

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

A partnership

• A. is the most common (普遍) form of business.

• B. can issue shares and bonds to raise capital.

• C. can facilitate the sharing of knowledge. 智識交流

• D. has a maximum of 20 partners.