Company Law Quiz

What is the primary focus of Company Law?

• Formation, regulation, and dissolution of Companies

• Taxation of individuals

• Intellectual property rights

• Employment law

Which of the following is NOT a category of Companies under the Companies Act, 2019?

• Limited Liability Company

• Unlimited Company

• Sole Proprietorship

• External Company

What is a key feature of a Limited Liability Company?

• Members' liability is limited to unpaid shares

• It has no separate legal identity

• Members have unlimited liability

• It cannot own property

What distinguishes a Private Company from a Public Company?

• Public Companies cannot have more than 50 members

• Public Companies are listed on the Stock Exchange

• Private Companies have unlimited liability

• Private Companies can invite the public to acquire shares

What is the liability of members in an Unlimited Company?

• Limited to their investment

• Unlimited to the last pesewa

• None of the above

• Only for debts incurred after incorporation

What is required for an External Company to operate in Ghana?

• A local partner

• A branch office

• Registration with the Registrar

• A minimum capital requirement

What is a key disadvantage of a Limited Liability Company?

• Provides protection to shareholders

• Allows for perpetual existence

• Encourages responsible investments

• Unfavorable to creditors

What is the maximum number of members allowed in a Private Company?

• 100

• Unlimited

• 50

• 20

What is a Sole Proprietorship?

• A company with multiple owners

• A limited liability company

• An unincorporated business owned by one person

• A partnership of two or more individuals

What is the primary purpose of a Partnership Agreement?

• To limit the liability of partners

• To define the roles of shareholders

• To outline the terms of the partnership

• To register the company with the Registrar