Read the statement about business entities and agree or disagree.
1. The most usual form of business in Estonia is sole proprietorship.
Tõene
Väär
Väär !
Õige !
No, it's not sole proprietorship. The most usual (popular) business entity in Estonia is private limited company (about 2/3 of the businesses are private limited companies).
2. A private limited company has a minimum share capital of 2500 euros.
Tõene
Väär
Õige !
Väär !
That's right. Starting
from January 1, 2011 one can establish a private limited company without contribution. The share capital may be
contributed later.
3. Sole traders (proprietors) have limited liability.
Tõene
Väär
Väär !
Õige !
No, it's not limited liability, it's unlimited liability. It means that a sole
proprietor shall be liable for his or
her obligations with all of his or her assets.
4. Businesses can be run and owned by one person or by two or more people.
Tõene
Väär
Õige !
Väär !
In sole proprietorship the business is owned by one person, in other businesses by one person, two or more people. A commercial association may be founded by at least five persons.
5. If a sole proprietor goes bankrupt, he or she may lose all his/her fortune.
Tõene
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Õige !
Väär !
Sole proprietors have unlimited liability - they are personally responsible for any debts.
6. The majority of businesses are limited companies in which investors are only liable for the amount of capital they have invested.
Tõene
Väär
Õige !
Väär !
Here is a legal distinction between the company and the owners, so the company is responsible for any debts, not the owners.
7. All the businesses have to be registered in the Commercial Register.
Tõene
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Õige !
Väär !
That's correct. A company can start its activities after
its entry in the Commercial Register and is liquidated after its deletion
from the Commercial Register.
8. Foundation,
activities and dissolution of enterprises in the Republic of Estonia is
regulated by the Commercial Register.
Tõene
Väär
Väär !
Õige !
Not the Commercial Register, but the Commercial Code.
9. A limited
partnership is a company in which two or more persons operate under a common
business name, and are solidarily liable for
the obligations of the limited partnership with all of their
assets.
Tõene
Väär
Väär !
Õige !
This description refers to a general partnership, not a limited partnership.
10. In comparison to other business forms it is complicated and expensive to set up a public limited company.
Tõene
Väär
Õige !
Väär !
Right. Firstly, share
capital shall be at least 25,000 euros, and secondly, if the company wants to offer its shares to the public (for sale on the Stock Exchange) the procedures and requirements are time-consuming.
True or false?