Chap DEF

Which of the following best describes a sole proprietorship?

• A company owned by two or more members contributing capital

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

• A legal entity separate from its owner

• An enterprise established by issuing shares to the public

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

• The Board of Directors

• The Members’ Council

• The individual owner

• The General Meeting of Shareholders

Regarding liability, the owner of a sole proprietorship:

• Is liable only within the amount of capital contributed

• Has unlimited liability with their entire property

• Shares liability equally with employees

• Is not personally liable for debts of the enterprise

Which of the following is NOT a characteristic of a sole proprietorship?

• It cannot issue shares to raise capital

• It is owned by one individual only

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

• It has the right to contribute capitals to other companies

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. Who is responsible for paying the debt?

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

• Only from the capital that Mr. Nam initially contributed

• Only the enterprise itself

• Creditors cannot collect because the business failed

A partnership must have at least:

• 1 partner

• 2 general partners

• 3 limited partners

• 2 shareholders

In a partnership, who has unlimited liability?

• Only general partners

• Only limited partners

• Both general and limited partners

• None, because the partnership itself is a legal entity

Can a partnership issue shares to raise capital?

• Yes, like a joint stock company

• Yes, but only to existing partners

• Yes, if approved by the Business Registration Office

• No, because it is not a shareholding entity

Which of the following is true about limited partners in a partnership?

• They can manage the company like general partners

• They are liable for the company’s debts with all of their assets

• They contribute capital but are liable only to the extent of their contribution

• They must be natural persons only

Which of the following activities cannot be performed by limited partners?

• Contributing capital

• Managing day-to-day business

• Receiving profits

• Inspecting the company’s financial statements