Partnership & LLP

What is a key characteristic of a conventional partnership?

• Limited liability for partners

• Partners share responsibilities and profits

• No legal entity status

• Mandatory audits required

In a private limited company, what protects shareholders from company debts?

• Limited liability

• Unlimited liability

• Partnership agreement

• Corporate veil

What is the primary legal framework governing Limited Liability Partnerships (LLP) in Malaysia?

• Registration of Business Act 1956

• Limited Liability Partnership Act 2012

• Partnership Act 1961

• Companies Act 2016

What distinguishes a limited partner in an LLP?

• Liable for all debts

• Not liable for partnership debts

• Has voting rights

• Can manage the business

Which of the following is NOT a requirement for setting up an LLP in Malaysia?

• Partnership agreement

• Minimum number of partners

• Registration with SSM

• Audited financial statements

What is a significant advantage of a general partnership?

• Fast and simple registration

• Mandatory audits

• Public disclosure of financial statements

• Limited liability

What is the liability of partners in a conventional partnership?

• Only for business debts

• Unlimited liability

• Dependent on the partnership agreement

• Limited to their capital contribution

Which of the following is true about LLPs in Malaysia?

• Only one partner is allowed

• Must submit audited financial statements

• No minimum voting rights required

• Partners are personally liable for debts

What is a requirement for a private limited company that is not required for an LLP?

• Unlimited liability

• Partnership agreement

• Annual compliance report

• No maximum number of partners

Which of the following statements is true regarding the decision-making process in an LLP?

• Decisions are made by a single partner

• Must follow strict regulations

• Flexible with no minimum voting rights

• Requires unanimous consent