Quiz on Sole Proprietorship and Partnerships

What is the primary characteristic of a sole proprietorship?

• It requires multiple partners.

• The business is owned and run by one person.

• It has limited liability.

• It must be registered under the Companies Act.

Under which act must a sole proprietorship register its business in Malaysia?

• Companies Act 1965

• Companies Act 2016

• Registration of Businesses Act 1956

• Partnership Act 1961

In a sole proprietorship, the owner's liability is:

• Limited

• Unlimited

• Shared with partners

• Non-existent

Which of the following statements about borrowing powers in a sole proprietorship is true?

• There are strict restrictions on borrowing.

• Borrowing powers are limited by law.

• There are no artificial restrictions on borrowing.

• Borrowing is not allowed.

How many persons are required to form a partnership under the Partnership Act 1961?

• One

• Two to twenty

• At least three

• No limit

What type of agreement is necessary for a partnership to exist?

• Written agreement only

• Oral agreement only

• Agreement by conduct, orally, or in writing

• No agreement is needed

In a partnership, who is liable for the debts and obligations of the firm?

• Only the managing partner

• All partners collectively

• The firm as a separate entity

• None of the partners

What must companies be formed and registered under in Malaysia?

• Companies Act 2016

• Registration of Businesses Act 1956

• Partnership Act 1961

• Trade Licensing Act

How many members are required for a company under the Companies Act 2016?

• At least one

• At least two

• At least five

• No limit

Which statement describes a company's legal status after registration?

• It is treated as an individual person separate from its members.

• It has no legal recognition.

• It can only operate under its members' names.

• It must dissolve immediately.