Chapter 6: Business Entities Quiz

What is the primary purpose of the Companies Commission of Malaysia (SSM)?

• To manage and govern the establishment and registration of businesses

• To provide loans to new businesses

• To regulate the stock market

• To oversee international trade

Which act governs the registration of sole proprietorships and partnerships?

• Companies Act 2016

• Business Registration Act 1956 (Amendment 1978)

• Co-Operative Act 1948

• Limited Liability Partnership Act 2012

What is a disadvantage of a sole proprietorship?

• Small start-up costs

• Easier to establish

• Full management control

• Limited capabilities

How many partners can be involved in a partnership according to the Partnership Act 1961?

• 5 to 25

• 3 to 15

• 2 to 20

• 1 to 10

What is a key feature of a Limited Liability Partnership (LLP)?

• No formal registration required

• Limited liability for shareholders

• Unlimited liability for partners

• Partnerships cannot be formed

What is the maximum number of members in a Private Limited Company (Sdn Bhd)?

• 100

• 50

• 20

• 2

Which of the following is NOT a requirement for a Private Limited Company?

• Company Seal

• Board of Directors

• Public offering of shares

• Articles of Association

What is the main advantage of a partnership?

• A. Liability is limited

• B. Management is more efficient due to shared skills

• C. Easier to raise capital

• B and C

What type of company can be listed on the Malaysia Stock Market?

• Public Limited Company

• Sole Proprietorship

• Private Limited Company

• Partnership

Which act governs the establishment of a Limited Company by Guarantee?

• Companies Act 2016

• Business Registration Act 1956

• Co-Operative Act 1948

• Partnership Act 1961