Business Entities & Nature of Partnership

The registration of partnership business is governed by ____.

• Partnership Act 1961

• Registration of Partnership Act 1956

• Registration of Business Act 1956

• Companies Act 1965

A partnership may only be formed by a written agreement.

• True

• False

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

• True

• False

The following statements are the similarities between sole-proprietorship and partnership business EXCEPT ___.

• 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

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

• 10

• 20

• 50

• Unlimited

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

• True

• False

Limited liability partnerships may only be formed for professional practices.

• True

• False

The members of a company have limited liability because ____.

• the business is run for the company

• the members and the company are one entity

• the companies have its own internal regulations

• the members are separated from the company

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

• True

• False

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

• companies generate more profits

• companies may be dissolved by winding up

• companies need to supply information to public

• companies has to lodge various documents upon registration