FORMS OF BUSINESS IN MALAYSIA

There are four forms of business structures in Malaysia.

• TRUE

• FALSE

Sole Proprietorship- a business which is solely owned by one person where management rests on that individual whose liability is unlimited.

• TRUE

• FALSE

Sole Proprietorship- owner must disclose business affairs to general public

• TRUE

• FALSE

Sole Proprietorship- owner is totally responsible for any debts incurred by the business

• TRUE

• FALSE

Sole Proprietorship- unlimited liability because if the business fails or bankrupt, the creditors are entitled to seize and sell the owner's possessions.

• TRUE

• FALSE

Partnership- maximum number of partners is 20.

• TRUE

• FALSE

Partnership- not required by the partnership Act.

• TRUE

• FALSE

Partnership- the risk cannot be reduced

• TRUE

• FALSE

Partnership- each partner is liable for the debts of the business, regardless of which partner is at fault

• TRUE

• FALSE

Partnership- better management because combination of skills and knowledge.

• TRUE

• FALSE