V. Read the text again and decide whether these statements are true (T) or false (F).

Date: 2015-10-07; view: 387.

IV. Answer these questions using the active vocabulary of the text.

1. What are the three traditional forms of business?

2. What is a sole proprietorship?

3. What is the owner of the company legally liable for?

4. How do any proprietors try to protect themselves?

5. Why may a sole proprietorship have difficulty in obtaining capital?

6. What is a partnership?

7. What are three types of partnerships?

8. What is a major advantage of partnership?

9. Are all of the partners subject to unlimited financial liabilities?

10. What is a major disadvantage of partnership?

11. How are limited companies created?

12. Who is represented by shares of stock in limited companies?

13. Do limited companies end with the death of owners?

14. Is it more expensive and complicated to establish corporations? Why?

15. What must a company send each shareholder?

1. The financial condition of the firm is the same as the financial condition of the owner.

2. The sole proprietor mustn't pay debts from his or her own pockets.

3. A sole proprietorship doesn't have any difficulty in obtaining capital.

4. A partnership is an unincorporated enterprise owned by two or more individuals.

5. There are three types of partnerships: general partnerships, limited partnerships and joint venture.

6. Complementary management skills are a minor advantage of partnerships.

7. In partnerships the limited liabilities are both joint and personal.

8. Limited companies are not created by law and are not separate from the people who own and manage them.

9. Limited companies end with the death of owners.

10. Limited companies are subject to federal and provincial income taxes.