頁二筅張六第日十二月四年要季服夏 WAH KIU YAT PO
育敎僑華
1971 英文中學會考試題預習專欄
VXI REM±1⁄4 SUNLIGHT
PRESS
經濟及公共事務科
(廿八)
Economic and Public affail
besson સ
9th May - 1971
Answers to sxercise 27.
I. (a) ctate why and how a limited liabi-
lity company is formed. What are the different kinds of shares in respect to their rights in the company ?
Answer:- The limited liability company is
the main skeleton of business organization novadas. It is a joint-stock company whose uhu cholders are only liable for the debts which can be paid because it bears several advantages.
1. All members enjoy limited liability. 2. with the co-operation of the Board 01
Directors, ambitious projects can be attempted.
A large amount of capital can be raised for larger undertakings because those who have no time to take an active part fu the company can also invest. Expansion-fs easy. The use of reserv €3 and issue of shares add in new capital
All companies which want to obtain limited liability must be registered with the Registrar General in the Colony. Kemorandum of Association, denoting the company's name, address, objects, register- ed capital and division os shares, together with the Articles of association indicating the internal administration of the company must be submitted to the Registrar General for approval. Then, a limited company is legally formed when the Certificate of In- corporation is normally granted by the Registrar of Companies.
The capital of a limited company is divided into shares which may vary in value There are several kinds of shares. (1) Ordinary Shares
• Commor, snares.--
nese optain no fixed rate of dividend (profit gained from a share), Holders oni get their profit after all other all other charges have been deduc ted. The rate of dividend varies according to the prosperity of the company.
deferred shares.---- When the common shares carry a fixed rate of di- vidend, the degerred shares take what remains after all charges and shares have been deducted,
(2) Preference Shares.
These shares dividend and are paid in full before the ordinary shareholders, if the business is profitable.
have a dish gate of
1. cumulative preference, shares-
The shareholders receive a fixed rate of dividend together with any arrears of dividends from the previous years, These can be co1-. lected before payment is made to the ordinary shares. participating preference shares---
The shareholders receive a fixed rate of dividend and in addition a bonus.
(3)Debentures. These are issued by a
company so as to obtain further capi. tal by borrowing from the public. Thas debenture holders are creditors of the company and receive a fixed rate of interest (slightly lower than the rate of dividend of preference shares) from the Company-
(b) What is meant by Monopoly ? State its
advantages and disadvantages.
Answer: Monopoly is a system by which an
absolute right is granted by the Government to supply a certain product or service. Thus a monopolist is the only producer and he meets no competition. he controle price and total output or product as long as it is
Planning of production can be made s0 as to equate supply and demand.
This in the long run will stabilize trade mu reduces the degree of risk,
Costs of production can be reduced be- cause other companies can specialize
郭日僑華
in other products since competition
五期星 日四十月五年一七九一履公年十六國民華中 育僑華
is prohibited. Thus, they all work at full capacity.
2. It is very practical for public utilities electecity, water supply etc such as gas, to be run by monopolists because it will only be a vasteful if competition exists 4. Iore economical distribution of product is made possible. e.g. One milkman ser ving one street is much cheaper than two- or more
Disadvantages:-
1. Consumers is liable to pay higher price
and enjoy smaller amount of service or products provided by the monopolists. Consumers freedom of choice is elimina ted. T
The products produced may be poor in cuality and below standard.
There may be a lack of introduction of modernized productive method because competition does not exist.
Resources of Society may not be fully utilized and remain idle under monopoly
II Choose the most suitable answer in sact
of the following a
Answer
The financial year of ment begins on
Hong Kong Govern-
c. 1st April.
All emergency ordinances in Hong Kong are signed by
a. the Governor.
The work of checking the smuggling of tax- able goods is the responsibility of the d. Department of Commerce and Industry.
4. Price index is a figuare showing
the cost of living.
A written order drawn up by a creditor and accepted by a debtor for the agr ement of payment return within a certain period called
e a bill of exchange
When a merchant loans from a bank for the purchase of foreign goods, the goods, if arrive, will be kept immediately in the store in the name of
a. the bank.
The main purpose of a national insurance scheme is
c. to provide social security.
3. Under British Justice, a person is supposed
to be innocent unless
c. he is proved fulltv.
9. The purpose of the Habeas Corpus rit 18
to protect a person
a. from being illerally detained.
10. Laws concerning divorce, breach of contract
losn, trespass and nuisance, etc. are known as.
b. civil laws.
Section I
TES
Choose the mast suitable answer in each of the followinco
Descriptive economies is that branch of economics that n
a. explains the principae or economics describes the operation of economic Institutions.
describes the acononic condition in s certain place.
a, describes the trading condition in a
place
applies to solve actual economic pro blems in a particular time.
The Term Tree enterprice" means that a. people are free to set up any firm if
they want to.
all firms are Lice from taxation,
. people need not get their firms regis-
tered,
people are Trée vu eligeye 17 illegal. business.
employees can be fired without any com pensation.
A Census is conducted
in alternate year. in every five years, c. in every eight years, a. in every ten years.
e. whenever it is considered necessary.
The advantages of perfect competition ar 1. to keep price down to a reasonable
price.al
11. to make price rigs. because of competition iii. to encourage efficiency.
iv. firms have power to control over the
equilibium price
a. 1, 11, 111, 1-
b. 1.
-0.11.
a. 1, 111.
e. 11, 111,
Secondary Production consists of
1. rice farming
textile industry
111 tourism,
iv. fishing.
V. heavy industry
a. 1, 11, 111,
b. 1, 111
c. 17111
11, το
School medical Service in Hong Kong means.
to provide all school ehildren with
a. free medical service.
b. free X-ray checking.
free injection and vancination. aided medical service.
increased charge in medical service.
Exucation TV will be put into practice in
a. September 1971
b. January, 1972.
o. September 1972
d. January 1973.
e. September 1973.
A new fresh water like will be constructed
near
B. Green Island
b. Grass Island
e.
High Island.
d. Tsing Yi Island.
e. Stonecutter's Island.
The policeman can arrest any one without warrant, if .
1. he reasonably suspects him of having
committed a crime,
11. he sees a person committing a crine, iii. he dislikes him,
iv. he wears ragged clothes.
he is informed of an indictable offence having committed.
a; 1,11,17,Y.
b. 1, 11, 17.
0.1, 11, T a. 11, 1,
10. The principle sourees of Fublic Kevenue
1. loans
11. grants.
111 tax88.
iv. miscellaneous-payments,
11, 111, 17/
0. 1, 11, 111.
17.
Une of the Toalowings is not the reason of inflation.
2. în sudden increase in supply of currenc;
notes.
, a shortage in suprly goods.
there ere more than one babk in a state rumour of a depreseiation in value of money.
where there is fear of outbreak of war
Endorser is the one
who draws money out with a cheque. who pays with a cheque,
c. to whome one pays with a cheque. d. to whom a cheque is entitled.
who signs his name att the back of cheque.
The clearing House is an institution
that is responsible for the sanita tion of a city.
where gambling takes place. where people can borrow money with low interest rate.
where the bank staff do their money counting.
where banks exchange their cheques.
14. One of t
the certificates that enables exp orts in Hong Kong is
a. Comprehensive Preference Certificate. b. Standard Preference Certificate.
c. Commonwealth Preference Certificate. d. Common Certificate of Origin.
Commonwealth Standard Certificate.
15 The main functions and duties of the
Governor in the Colony are that
i he is the Commander in chief of armed
forces.
ii. he is the law-maker,
111, he is the presiding orficer or Execu-
tive Council.
iv. he is the Chairman of the Urban Connodi v. he ensures and maintains peace and order
in the Colony.
1, 11, 111,
D. 1, 11, 7. 0.111111
4. 1, 111, 1v,
16. One or the rollowings is no
of Urban Council..
Tüncion
a, makes by-laws dealing with public health b. manages multi-storey car parks and City
Kall.
c. operates the ward system. controls public finances.
carries out inspections to ensure pro- per sanitation.
The indirect tax is
salaries tax
b. profits tax.
o
interest tax,
licences,
stamp tax.
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