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•Read the article about the limited company and its liability.•For each Questio
•Read the article about the limited company and its liability.•For each Questio
游客
2025-05-30
23
管理
问题
•Read the article about the limited company and its liability.
•For each Question 31-40, write one word in CAPITAL LETTERS on your Answer Sheet.
The Limited Company and Its Liability
When a limited company has started trading, you do not invest in shares by giving more capital to the company. You buy them from one of the shareholders. If it is a private limited company, a shareholder can only sell shares (31) all the other shareholders agree. If it is a public limited company, shares can be bought and (32) freely, usually at a Stock Exchange. If the company is doing well and paying high dividends, then you might pay more than the face value of the shares. If it is doing badly, you might (33) less than the face value of the shares. The price you pay at the Stock Exchange (or to a shareholder) for your shares is their market value.
If the company fails, it will stop trading and go (34) liquidation. This means that all the company’s property and equipment (its assets) must be sold. The money from the sale will be used (35) pay all its debts. The shareholders may lose the money they paid for the shares. If the company still does not have enough money to pay all its (36) , the shareholders do not have to pay any more money. In other words, the shareholders’ liability for debts is limited (37) the value of their shares. On the other hand, if you are an owner (38) a business, which is not limited, for example a sole proprietorship (owned by one person) or a partnership (owned by between 2 and 20 people) and your business fails, you will go bankrupt. In this case you might have to sell your own private possessions (your house, car, furniture, etc.) to pay all your creditors. In other (39) , sole proprietors and partners have unlimited liability (40) their firm’s debts. [br]
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