CHAPTER 1: CHARACTERISTIC OF A BUSINESS ENTITIES

A ___ is a business that is run by a single person.   

• company

• partnership

• sole proprietorship

• limited liability partnership

The unlimited liability of a sole proprietor or partners in a partnership business means___.   

• a creditor cannot seize their personal assets

• they are separately liable for business debts.

• they are liable for the business's debts without limit.

• at least 75% of their assets must be contributed

In a sole proprietorship, all decisions are in the form of ___.

   

• personal decision

• common decision

• collective decision

• unanimous decision

A business is known as ......... when 2 to 20 persons get together to form a business with a view of profits.

• company

• partnership

• sole proprietorship

• franchise

Normally, a sole proprietorship obtained financial sources from ..........

• shareholder

• his/her partner

• his/her personal saving

• loan from the bank

Mat Topi, a sole proprietor, who no longer wants to continue with his business may .....

• create a new agreement

• sell his shares to other shareholders

• petition to the court to wind up his business

• choose to dissolve it at any time

A company must be formed under the requirement of the .....

• Limited Liability Partnership 2012

• Registration of a Business Act 1956

• Companies Act 2016

• Partnership Act 1967

A ....... life continues even if all of its members have died.

• company's

• partnership's

• sole proprietor's

• LLP's

A limited liability partnership provides its partners with the protection of limited liability.

• True

• False

"This personality can own property in its name"

This statement refers to .......

• company

• partnership

• LLP

• sole proprietorship