A partnership and a sole proprietorship have the same legal status., True, False, What is the main advantage of a sole proprietorship compared to a partnership?, A. Ability to raise capital from multiple investors, B. The owner is exempt from financial liability, C. Has legal entity status, making expansion easier, D. Simple procedures and quick decision-making as there is only one owner, Which of the following describes the liability of a sole proprietor according to the source material?, The owner is only liable for business debts incurred during the first year of operation, The owner is only liable for debts up to the amount of capital they initially contributed, The owner’s liability is shared equally with the government in cases of bankruptcy, The owner must use all personal assets to settle business debts if the business cannot, Why are both sole proprietorships and partnerships prohibited from issuing securities like shares or bonds?, A. Their capital contributions are required to be kept secret from the public by law, B. They do not have a sufficient number of employees to manage a public offering, C. They are not considered separate legal entities in the same way as a joint stock company, D. The tax rates for issuing securities would be too high for these business types., Under Article 180 of the Law on Enterprises 2020, the owner of a sole proprietorship can also be a general partner in a partnership at the same time., True, False, An individual named Mr. A is currently the owner of a sole proprietorship. According to the Law on Enterprises, what is he restricted from doing?, A. He cannot hire more than two employees for his current business, B. He cannot simultaneously serve as a general partner in a partnership, C. He cannot convert his business into a limited liability company, D. He cannot invest his own personal savings into a second, different sole proprietorship, General partners have unlimited liability for the debts and obligations of the partnership, while limited partners’ liability is generally limited to the amount of their capital contribution., True, False, If a partnership incurs a debt of 5 billion, what can creditors do if the partnership's assets are insufficient?, A. They can claim repayment from the personal assets of each general partner, B. They can only claim up to 50% of the total debt from the partners, C. They are legally required to forgive the debt if the partners have no remaining business capital, D. They must wait for the partnership to generate future profits to collect the debt

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