PLKT

Question 1: Which of the following best describes a sole proprietorship?

• A) A company owned by two or more members contributing capital

• B) An enterprise owned by a single individual who is responsible with all of their assets

• C) A legal entity separate from its owner

• D) An enterprise established by issuing shares to the public

Question 2: Who has the right to make business decisions in a sole proprietorship?

• A) The Board of Directors

• B) The Members’ Council

• C) The individual owner

• D) The General Meeting of Shareholders

Question 3: Regarding liability, the owner of a sole proprietorship:

• A) Is liable only within the amount of capital contributed

• B) Has unlimited liability with their entire property

• C) Shares liability equally with employees

• D) Is not personally liable for debts of the enterprise

Question 4: Which of the following is NOT a characteristic of a sole proprietorship?

• A) It cannot issue shares to raise capital

• B) It is owned by one individual only

• C) It can be converted into a limited liability company if conditions are met

• D) It has the right to contribute capitals to other companies

Question 5: Mr. Nam owns a sole proprietorship. His business took out a loan of 2 billion VND but later went bankrupt. The creditors are demanding repayment. Question: Who is responsible for paying the debt?

• A) Mr. Nam, with all of his personal property if necessary

• B) Only from the capital that Mr. Nam initially contributed

• C) Only the enterprise itself

• D) Creditors cannot collect because the business failed

Question 6: A sole proprietorship has the status of a legal entity.

• False

• True

Question 7: The owner of a sole proprietorship is personally responsible for all debts and obligations.

• True

• False

Question 8: A sole proprietorship cannot sell shares to raise capital.

• True

• False

Question 9: The owner of a sole proprietorship can transfer the entire enterprise to another individual.

• True

• False

Question 10: A sole proprietorship can have more than one owner if they agree to share profits.

• True

• False