ENT300 ENTREPRENEURSHIP CHAPTER 5 AND 6

The business entities in Malaysia are business, company and hybrid.

• True

• False

What Acts applies to Limited Company by guarantee and Limited Company by share ?

• Limited Liability Partnership Act 2012

• Business Registration Act 1956

• Company Act 1965

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

Business Formation are business, company and hybrid

• True

• False

Which is not family business challenges

• Liquidity

• Financing

• Succession

• Freedom and flexibility in making decision