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Worksheets

Company Law

Total questions: 43

Worksheet time: 16mins

Name
Class
Date
1.
What are the two types of duty owed by directors of a company? 
a)
Duty of interaction. 
b)
Duty of care; fiduciary duty. 
c)
They don't owe any duty. 
d)
I need to study more. 
2.

The term perpetual succession mean

a)

Going to be die

b)

Never dies

c)

Member operated only

d)

Separate property

3.

The process of forming a company including where it becomes a legal entity is known as ______.

a)

Incorporation

b)

A franchise

c)

Liquidity

d)

Goodwill

4.

Who takes full legal responsibility in a company limited by shares?

a)

The shareholders

b)

The owners

c)

The directors

d)

The government

5.

Sally has been appointed as the secretary company of MNA Sdn Bhd. One of the director of the company who is known as Mr Logic had suggested to the board of director to allocate pension for his wife upon his death. Which of the law below is related to his act as the director of the company?

a)

acting in a good fiduciary duty

b)

has conflict interest because acting for his personal interest

c)

has acting in a good faith, position of trust

d)

acting based on his skills, knowledge and judgment

6.

Below are the situation that falls under Judicial veil of lifting EXCEPT:-

a)

Perpetration of Fraud

b)

Tax avoidance

c)

Evasion of obligation

d)

Section 131 of the Act 2016

7.

What is company's constitution?

a)

internal management document of the company

b)

it is a guideline

c)

Certified Form or Certified document

d)

company financial account

8.

Who is officer of the company?

a)

Explain in Section 2 of the Companies Act 2016

b)

Define in Salomon's case

c)

takeover

d)

liquidator appoint in involuntary winding up

9.

Salwa as director never received any copies of Financial Account of the company. She complain this matter to the board. Advise Sarah.

a)

Sarah has a right to received document of financial account

b)

Sarah doesn't has right to received Financial Account because she only a director not an accountant of the company

10.

A business organization where the owners are personally responsible for the business debts a(n)

a)

C Corporation

b)

LLC

c)

Partnership

d)

Sole proprietorship

11.

A business run by one person is a(n)

a)

Corporation

b)

LLC

c)

Sole proprietorship

d)

Partnership

12.

Which are the partners who share profits and losses

a)

Active partner

b)

Sleeping partner

c)

Secret partner

d)

Partner by estoppel

13.

Liability of partners is unlimited in case of general partnership whereas it is limited in

case of Limited Liability Partnership.

a)

True

b)

False

c)

None of the above

14.

A company wants to computerize its accounting system. It issues stocks to raise additional funds.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

15.

2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

16.

3. Mary opened a dance studio. She receives all the profits from her students’ lessons.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

17.

Mr. Lewis pays taxes on dividends for stocks he owns in a manufacturing company. The company also pays taxes on its income before distributing it to stockholders.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

18.

Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

19.

Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

20.

Unger and Unger is a law firm consisting of two brothers who started their own business. They both are responsible for all profits and risks that their firm will have.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

21.

8. A person who takes a risk to produce goods and services in search of a profit is an entrepreneur. In which kind of business structure may entrepreneurs establish a business?

a)

Partnerships and Corporations

b)

Sole Proprietorships, Partnerships, and Corporations

c)

Only Corporations

d)

Sole Proprietorships and Corporations

22.

9. What type of business is described in the diagram below?

a)

Sole Proprietorships

b)

Partnerships

c)

Corporation

23.
What can be lifted if the company is used to perpetrate fraud or act ultra vires? 
a)
The carporate veil may be lifted.
b)
The company loses money. 
c)
An expensive fine may be lifted. 
d)
I need to study more. 
24.
Who issues a certificate of incorporation? 
a)
The company itself. 
b)
A governental authority. 
c)
It's issues automatically. 
d)
I need to study more. 
25.

Who is the head and brain of the company?

a)

Shareholders

b)

Employees

c)

Directors

d)

Stakeholders

26.

1. The term ‘ultra vires’ means------------------

a)

with the power

b)

Beyond the power

c)

Directors power

d)

Shareholders power

27.

Property of the company belongs to

a)

Shareholders

b)

company

c)

members

d)

promoters

28.

In Malaysia, the main legislation that govern companies is

a)

Companies Act 1965

b)

Companies Act 2016

c)

Companies Ordinan 2016

d)

Companies Ordinan 1965

29.

Sole proprietorship is

a)

one person only

b)

2-20 persons

c)

unlimited

d)

2-50 persons

30.

Partnership are governed under the

a)

Partners Act 1961

b)

Partnership Act 1991

c)

Partnership Act 1961

d)

Partners Act 1991

31.

A legal entity separate from its members is for

a)

Sole Proprietorship

b)

Company

c)

Liability Limited Partnership

d)

Partnership

32.
A legal person ... rights and duties under the law just like a natural person.
a)
owes
b)
invests
c)
manages
d)
owns
33.
A legal person cannot...
a)
enter into contracts
b)
sue others
c)
own property
d)
avoid liability
34.
What does the word "insolvency" mean?
a)
liability
b)
bankruptcy
c)
incorporation
d)
environment
35.

The state of not being able to pay one's debts or having an excess of liabilities over assets.

a)

insolvent

b)

bankrupt

c)

liquidation

d)

winding-up

36.

The procedure whereby the assets of a company are gathered in and realized, the liabilities met and the surplus, if any, distributed to members.

a)

insolvent

b)

winding-up

c)

liquidator

d)

bankruptcy

37.

The placing of a company into liquidation as a result of an application to the court, usually by a creditor.

a)

bankruptcy

b)

insolvency

c)

compulsory liquidation

d)

winding-up

38.

Paul is a creditor of Jar King Berhad (JK). On 1 May, Paul filed a petition in court for the winding up of JK. Paul served the petition to JK on 30 May. The court heard the petition on 15 September. The winding up order of JK was made by the court on 2 October.


On which of the following dates is the winding up of the company deemed to have commenced?

a)

2 October

b)

15 September

c)

30 May

d)

1 May

39.

Who may petition the court for an order to wind up a company?

a)

The government

b)

The customer

c)

The company

d)

Any member of the public

40.

When does a compulsory winding up of a company commence?

a)

At the time of the presentation of the petition

b)

At the time of the passing of the board resolution

c)

At the time stipulated in the petition

d)

At the time the court order is made

41.

Which of the following are circumstances by which a company may be wound up by the court?

I. The company has by an ordinary resolution resolved that the company is to be wound up

II. The company is being used for unlawful purposes

III. The court is of the opinion that it is just and equitable for the company to be wound up

IV. The company does not commence its business within six months of its incorporation

a)

I, II and III only

b)

II and III only

c)

I, II and IV only

d)

I, III and IV only

42.

Which of the following are linked to the deregistration of a company?

I. Striking off process

II. Compulsory winding up of a company

III. An action that brings a company’s existence to an end

IV. An action that results in a company’s name being taken off the Register of Companies

a)

I, II and III only

b)

II and III only

c)

I, II and IV only

d)

I, III and IV only

43.

The following are the characteristics of a Voluntary Winding Up EXCEPT

a)

Takes place when the company is insolvent

b)

The liquidator is appointed by the members

c)

Members voluntary winding up (MVWU)

d)

Creditors voluntary winding up (CVWU)