Business Entities & Nature of Partnership

Front

The registration of partnership business is governed by ____.

Back

Registration of Business Act 1956

Front

A partnership may only be formed by a written agreement.

Back

False

Front

The partners and the partnership firm is considered as one single entity.

Back

True

Front

What is the exception to the similarities between sole-proprietorship and partnership business?

• the liability is unlimited
• the setting up of business requires a formal agreement
• there is no separate legal entity between the members and the business
• the business is registered under Registration of Business Act 1956

Back

the setting up of business requires a formal agreement

Front

The maximum number of members in an Ordinary Partnership is ____.

Back

20

Front

Private properties of a partner will not be subjected to legal liability of the partnership firm.

Back

False

Front

Limited liability partnerships may only be formed for professional practices.

Back

True

Front

Why do the members of a company have limited liability?

Back

The members are separated from the company.

Front

A company needs to be registered under the Registration of Business Act 1956.

Back

False

Front

The following statements show that companies are subject to formal requirements and rules except ___.

Back

companies generate more profits