Business Entities in Malaysia Quiz Topic 3

Which of the following is NOT a type of business entity in Malaysia?

• Sole Proprietorship

• Limited Liability Partnership (LLP)

• Corporation

• Partnership

What act governs the registration of Sole Proprietorships in Malaysia?

• Companies Act 2016

• Partnership Act 1961

• Registration of Business Act 1956

• Limited Liability Partnership Act 2012

A Partnership is defined as the relation between persons carrying on business with the view of profit. Which of the following is NOT one of the elements required to form a partnership?

• A written agreement

• Relation

• A business

• With a view of profit

In a Sole Proprietorship, which of the following statements is TRUE?

• It requires a large amount of capital to start.

• The owner has unlimited liability.

• It is governed by the Companies Act 2016.

• It has a separate legal existence from the owner.

What is the maximum number of partners allowed in a general partnership under Malaysian law?

• 10

• 20

• 50

• No limit

Which of the following describes a nominal partner in a partnership?

• A partner who actively participates in the management of the business.

• A partner who takes no active part in the management but is liable as a partner.

• A person who lends their name to the firm without any real interest.

• A partner who has a financial stake but does not share profits.

What is the primary effect of incorporating a company under the Companies Act 2016 in Malaysia?

• The company becomes a non-profit entity.

• The members are personally liable for the company's debts.

• The company is treated as a separate legal entity.

• The company must be managed by its shareholders.

Which of the following is TRUE regarding the dissolution of a partnership?

• A partnership cannot be dissolved by mutual agreement.

• A partnership can only be dissolved through a court order.

• A partnership can be dissolved if one partner declares their intention to terminate it.

• A partnership cannot be dissolved by death or bankruptcy.

Which of the following business entities requires formal registration under the Companies Act 2016?

• Sole Proprietorship

• General Partnership

• Limited Liability Partnership (LLP)

• Private Limited Company (Sdn. Bhd.)

What is the maximum number of members in a private company in Malaysia?

• 20

• 50

• 100

• No maximum