ENT300 CHAPTER 6 (EXERCISE)

Partnership is owned by one person whose liability is unlimited

• True

• False

Characteristics of Private Limited Company is below except

• Membership

• Right and responsibility

• Single owner

• Liabilities

Partnership is

• legal business entity with two or more partners

• legal entity and its identity is separate from the identity of the company's members

One of the advantages of Sole Proprietorship is easy to manage since the owner can make his/her own decision

• True

• False

Disadvantages of partnership are below except

• Since the business liabilities are unlimited, it may involve personal assets of the partners

• Risk of personal clashes among partners

• Misconduct or unethical behaviour might happen without Letter of Agreement among partners.

• Lots of ideas, talents and skilss can be pooled together for better management

Private Limited Company is a legal entity and its identity is separate from the identity of the company's members

• True

• False

Disadvantage of Sole Proprietorship is

• Owner enjoy certain degree of flexibility

• Limited source of capital

• Easy to form and dissolve

• Profits or losses beared by owner

The registration of partnership business is governed by ____.

• Partnership Act 1961

• Registration of Partnership Act 1956

• Registration of Business Act 1956

• Companies Act 1965

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