WorksheetsENT300 ENTREPRENEURSHIP CHAPTER 5 AND 6
Total questions: 20
Worksheet time: 10mins
The business entities in Malaysia are business, company and hybrid.
True
False
What Acts applies to Limited Company by guarantee and Limited Company by share ?
Limited Liability Partnership Act 2012
Business Registration Act 1956
Company Act 1965
Partnership is owned by one person whose liability is unlimited
True
False
Characteristics of Private Limited Company is below except
Membership
Right and responsibility
Single owner
Liabilities
Partnership is
legal business entity with two or more partners
legal entity and its identity is separate from the identity of the company's members
One of the advantages of Sole Proprietorship is easy to manage since the owner can make his/her own decision
True
False
Disadvantages of partnership are below except
Since the business liabilities are unlimited, it may involve personal assets of the partners
Risk of personal clashes among partners
Misconduct or unethical behaviour might happen without Letter of Agreement among partners.
Lots of ideas, talents and skilss can be pooled together for better management
Private Limited Company is a legal entity and its identity is separate from the identity of the company's members
True
False
Business Formation are business, company and hybrid
True
False
Which is not family business challenges
Liquidity
Financing
Succession
Freedom and flexibility in making decision
Which is advantage of Starting from scratch?
Entrepreneur have opportunities to try and practice his/her own ideas
High chances of loss
Not be able to accurately estimate sales, cost and profits since there was no business history
Buying existing business means entrepreneur start a new venture by taking over an existing business either buying the whole business or partial shares in the existing business
True
False
Franchise is a person who purchases the right from the franchisor to operate the franchise
False
True
The definition of Franchisor is
a company which sells the rights to another party to operate franchise
a product or service distribution system which is governed by a contract
For business Starting from scratch, entrepreneur has to make decision on business name, location of business, and funding to start the business
True
False
One of the disadvantage of Private Limited Company is the company has greater potential for expansion
True
False
Disadvantage of Sole Proprietorship is
Owner enjoy certain degree of flexibility
Limited source of capital
Easy to form and dissolve
Profits or losses beared by owner
Advantages of Buying existing business are these except
There are existing market and loyal customers
Conflicts may arise between new owner and old owner
Time spent to resume the business a lot faster compared to starting from scratch
Had established network with suppliers and communities
Family business sucession means that the entrepreneur is the successor of the business which was started by the earlier family members (predecessors)
True
False
Franchising advantages for franchisee are these except
limited freedom and flexibility
benefits of economies of scales
guidance from franchisor's management team
lower business risks
