Which one of the following statements is true?
A、Limited company status means that a company is only allowed to trade up to a predetermined turnover level in any one year
B、For organisations that have limited company status, ownership and control are legally separate.
C、The benefit of being a sole trader is that you have no personal liability for the debts of your business.
D、Ordinary partnerships offer the same benefits as limited companies but are usually formed by professionals such as doctors and solicitors.
A、Limited company status means that a company is only allowed to trade up to a predetermined turnover level in any one year
B、For organisations that have limited company status, ownership and control are legally separate.
C、The benefit of being a sole trader is that you have no personal liability for the debts of your business.
D、Ordinary partnerships offer the same benefits as limited companies but are usually formed by professionals such as doctors and solicitors.
【参考答案及解析】
Rationale: In a limited company, the owners (shareholders) are separate from the managers of the concern (board of directors).Pitfalls: Some options look plausible because of the wording. 'Limited' doesn't mean 'only being allowed to trade up to' - but looks as if it might. The second half of the statement about partnerships is true - but this doesn't mean that the first half is also true.Ways in: You should have been able to rule out A (no company's turnover is limited), C (sole traders do have personal liability for debts: they do not have 'limited liability') and D (ordinary partnerships are different from limited companies)
Rationale: In a limited company, the owners (shareholders) are separate from the managers of the concern (board of directors).Pitfalls: Some options look plausible because of the wording. 'Limited' doesn't mean 'only being allowed to trade up to' - but looks as if it might. The second half of the statement about partnerships is true - but this doesn't mean that the first half is also true.Ways in: You should have been able to rule out A (no company's turnover is limited), C (sole traders do have personal liability for debts: they do not have 'limited liability') and D (ordinary partnerships are different from limited companies)