ETR - FORMS OF BUSINESS

Tony and Alex own a saloon together. They share equal responsibility and each receive 50% of the profits. What form of business organization is this?

• Sole proprietorship

• Partnership

• Private limited company

• Public limited company

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Sole proprietorship

• Partnership

• Private limited company

• Public limited company

The owners of a corporation are called

• Directors

• Partners

• Founders

• Shareholders

How is a partnership organized?

• Every partner shares both responsibility and liability

• No partner is responsible for the debts of the partnership beyond his or her investment

• Only one partner is responsible for the debts of the partnership

• The business can continue even with the death of any one partner.

Ms Lim wants to start a business to sell her sister's baked goods. But she doesn't want to have to comply with lots of laws and regulations.

Which business form(s) is/are the most suitable for her?

• Sole proprietorship

• Partnership

• Private limited company

• Public limited company

The Companies Act ____ repealed the Companies Act ____ and changed the landscape of company law in Malaysia.

• 2016, 1967

• 1965, 2016

• 2016, 1965

• 2006, 1958

The followings are correct about corporations EXCEPTS

• Pay corporate income tax

• Unlimited liabilities

• Sell shares to the investors

• The business is a separate legal entity

- The shares are not traded in the stock exchange

- The company has to appoint external auditors to verify its financial report as well as its “well-being”

This refer to:

• Sole proprietorship

• Partnership

• Private limited company

• Public limited company

Characteristic of a private limited company are:

• The life span of the company is not dependent on the death or withdrawal of its members.

• Information of the company must be shared with shareholders and general public

• A minimum of one shareholder and a maximum of 50 shareholders.

• The shareholders' personal assets are not available to the company’s creditors.

Example of a public limited company:

• Amir Photography Enterprise

• Nestle (Malaysia) Bhd

• Poliklinik Dr Azhar & Rakan-Rakan

• D'herbs Holding Sdn. Bhd.