F.4 Economics Book 2 Chapter 8_IV_20230119

The minimum number of owners in a private limited company is ______________.

• one

• two

• three

• four

Which of the following types of business ownership need to disclose the financial accounts to public?

• Sole proprietorship

• Partnership

• Private limited company

• Public limited company

Which of the following types of business ownership can issue shares to raise capital?

• Sole proprietorship

• Partnership

• Public enterprise

• Private limited company

Which of the following can be a feature of a limited company?

• It is a legal entity.

• Its owners have unlimited liability.

• It lacks continuity.

• It's profit tax rate is lower.

If a private limited company is converted (轉變) into a listed company,

• it will lose its status as a legal entity.

• the risk of being taken over will increase.

• its profits will increase.

• None of the above

Which of the following comparisons between a private limited company and a public limited company is correct?

• More capital is required to set up a public limited company.

• A public limited company is subject to a higher profits tax rate.

• A public limited company has more sources of capital.

• A public limited company employs more employees.

Compared with a partnership, which of the following are advantages of a limited company?

(1) Limited liability

(2) Shorter decision-making time

(3) More sources of capital

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• All of the above

Five individuals, each contributing HK$160,000, opened SOCCERBEAUTY, which sells soccer products. They all claimed that they would not lose more than the amount they invested. The firm does not have to disclose its financial accounts to the public. This firm is

• a partnership.

• a private limited company.

• a public limited company.

• Inadequate information to determine

A Hong Kong registered firm has 170 shareholders. All of them enjoy limited liability. This firm must be a ___________ but not necessarily (未必) a ___________.

• listed company ... public limited company

• private limited company ... listed company

• public limited company ... listed company

• listed company ... private limited company

Lindy wants to set up a logistics firm on her own. As Lindy has insufficient funds (資金不足), she plans to raise capital by issuing bonds (債券) and borrowing from banks. Which form of ownership should Lindy choose?

• Sole proprietorship or limited company

• Limited company

• Partnership

• Sole proprietorship