Introduction to company

In respect of a member’s liability, which of the following is TRUE in respect of a company limited by shares?

• Liability of the member is limited to the amount paid on the shares.

• Liability of the member is limited to the amount, if any, unpaid on the shares.

• Liability of the member is limited to the amount set out in the guarantee in the MOA

• Liability of the member is limited to RM10,000

There are a number of differences between a public company and a private company. Which one of the following is NOT true?

• A private company has a total number of members that do not exceed 20, whereas a public company has no limit on the maximum number of members.

• Private companies can be created with a trivial amount of capital, whereas public companies must have restriction on the total amount of capital.

• Public companies may offer their shares to the public, whereas private companies may not

• A public company is required to have the word Berhad (Bhd) as part of its name, whereas a private company needs to have the words Sendirian Berhad (Sdn Bhd).

Which of the following correctly states the liabilities of the business entities?

• Limited Company: Limited liability; Partnership: Unlimited liability; Sole Proprietorship: Unlimited liability.

• Limited Company: Limited liability; Partnership: Limited liability; Sole Proprietorship: Unlimited liability.

• Limited Company: Unlimited liability; Partnership: Limited liability; Sole Proprietorship: Limited liability.

• Limited Company: Unlimited liability; Partnership: Unlimited liability; Sole Proprietorship: Limited liability.

Where in the annual report would you expect to find mandatory social and environmental reporting?

• The financial statements and the chairman’s report.

• Notes to the financial statements and directors’ report.

• Corporate governance information and the auditor’s report.

• The Directors’ declaration and the Chief Executive Officer’s report.

A foreign company means a company incorporated ________Malaysia and having a place of business______ Malaysia.

• outside, outside

• in, in

• in, outside

•   outside, in

 

Sole proprietorship business can be started by

• at least seven persons

• any one person

• at least two persons

• at least three persons

Which is not a feature of a partnership business?

• Ease of formation

• Limited liability

•   Limited life

• Mutual agency

Which independence bodies was established to take over a role of standard setting in Malaysia?

• Securities Commission

• The Malaysian Institute of Certified Public Accountants (MICPA)

• The Malaysian Accounting Standard Board (MASB)

• The Malaysian Institute of Accountants (MIA)

   

______ does not have legal power to enforce compliance. It can, however, rely on the power it has to delist, suspend or publicly reprimand errant listed companies for any non-compliance with its regulations.

• The Securities Commissions

• Bank Negara

• Audit

• Bursa Malaysia

Which of the following statement is FALSE about a company limited by guarantee.

• It must be a public company

• It cannot pay dividend to its member

• It is formed for the purpose of providing recreation or for promoting art, religion, charity etc.

• It does not require a license to omit the word Berhad from its name