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WorksheetsCBL-JJ24
Total questions: 45
Worksheet time: 23mins
Which of the following statements is TRUE about a general partnership?
A general partnership is created any time by one or more persons associated to carry on a business as co-owners to share profits and control.
Each partner may contribute to the general partnership in cash, or in kind only.
Decisions are typically made by majority vote. However, certain critical determinations, i.e., amendment to a partnership agreement, necessitate unanimous agreement from all general partners.
General partners are entitled to wages for employment in the general partnership business
Which of the following statements is TRUE about “joint and several liability” in a general partnership?
General partners are only liable for the debts they personally incur
General partners share the total debt but are not responsible for each other's portion
The partnership, as a separate entity, is solely liable for debts
Each general partner is fully liable for all the partnership's debts, even if they didn't contribute equally
A general partnership that has acquired legal personality shall be deemed to be of Khmer nationality only if:
(i) The general partnership has a place of business and a registered office located in Cambodia.
(ii) More than 50% of the record ownership interest in such general partnership is held by natural persons of Khmer nationality.
(iii) At least 51% of the record ownership interest in such general partnership is held by legal persons of Khmer nationality.
(iv) At least 51% of the record ownership interest in such general partnership is held by natural or legal persons of Khmer nationality.
(i) only
Both (i) and (ii)
Both (i) and (iii)
Both (i) and (iv)
The liability of a limited partner in a limited partnership is limited by which of the following?
The amount of the general partner’s investment in the business.
The amount of the limited partner’s investment in the business.
The extent to which the limited partner manages the business
The extent of personal assets owned by the limited partner
LUCKY-YOU LP, a limited partnership, owes US$82,000 to a creditor. Mr. LUCKY, a limited partner, invested US$30,000. What is the maximum liability of Mr. LUCKY?
US$30,000
US$52,000
US$82,000
US$32,000
The name of a limited partnership shall include identification word “Limited Partnership” or “LP”, which shall be placed:
At the beginning or end of the limited partnership’s name
At the beginning or under the limited partnership’s name
At the end of or above the limited partnership’s name
At the end of or under the limited partnership’s name
Which of the following is a key characteristic of a limited liability company?
Unlimited liability for its members
Limited liability for its members
No separation between the company and its members
All of the above
The Certificate of Incorporation (COI) issued by the Ministry of Commerce certifies the due registration of the limited liability company and contains certain information. Which of the following information is NOT typically found on the COI?
Name of the limited liability company
Registration number
Registered capital
Type of business entity registered
Under the Labor Law, which of the following statements is correct relating to Unfixed Duration Contract or Unspecified Duration Contract (“UDC")?
UDC is an employment contract that can be made verbally or in writing without end date and with or without a clear starting date.
UDC is a contract that is made for the employer to judge the suitability of the employee
UDC is an employment contract that must be made in writing and precisely stated as an unspecified duration inside the contract.
A and C above
Under the Labor Law, which of the following statements is incorrect relating to Seniority Indemnity (Seniority Payment)?
Seniority Indemnity applies to only employees under Unfixed Duration Contract.
Seniority Indemnity shall be paid to the employee in the amount of 5% of the employee’s monthly wage
Seniority Indemnity has replaced the term ‘Indemnity for Dismissal
None of the above
Under the Labor Law, which of the following statements is correct relating to shop stewards?
Shop Steward is a person responsible for dealing with labor inspectors.
A company does not have to prepare a shop steward election if they already have a Human Resource Officer
A company that employs eight or more employees is required to hold elections for shop stewards
Shop Stewards are elected by employees with 5 years of service or more
Under the Labor Law, which of the following statements is correct relating to a collective labor dispute?
Collective labor dispute shall be exclusively settled by the Labor Court.
Collective labor dispute refers to any disputes resulting from the terminations of a group of employees who are associated with Trade Union or Shop Steward.
Collective labor dispute refers to any disputes resulting from a reduction in an establishment’s activity or an internal re-organization that is foreseen by the employee
Collective labor dispute refers to any disputes concerning the working conditions, the exercise of the recognized rights of professional organizations, and the recognition of professional organizations within the enterprise
How does the Law on Commercial Enterprises (“LCE”) differentiate between Private Limited Companies and Public Limited Companies regarding the issuance of securities?
Private Limited Companies can issue securities freely, while Public Limited Companies cannot.
Private Limited Companies must have a minimum of five directors to issue securities, while Public Limited Companies do not have this requirement.
Private Limited Companies cannot issue securities, while Public Limited Companies can issue securities to the public
There is no distinction between Private Limited Companies and Public Limited Companies regarding the issuance of securities.
Under the LCE, what activities can a Commercial Representative Office perform?
Enter into contractual agreement
Research commercial information and provide information to its principle
Rent an office and employ local staff
All of the above
Partnerships are not required to be registered to exist, but registration of a partnership creates a legal personality for the partnership that is separated from individual partners and the partnership can:
Have shareholders
Own movable and immovable property in its own name
Enter into contract in its own name
B and C
According to the LCE, once the “certificate of intent to dissolve” is issued by the Ministry of Commerce (“MoC”), the company shall immediately:
Distribute remaining property among shareholders
File a notice to dissolve to the court.
Send a copy of the notice of intent to dissolve to each known creditor and publish such notice in a newspaper for two consecutive weeks
None of the above.
Under the LCE, a single member private limited company is a form of private limited company:
Containing only one shareholder
Containing only one shareholder who must be a legal person
Containing only one shareholder whose nationality shall be Cambodian
Containing one or more shareholders
Under the Law on Investment, investment incentives may include:
Special incentives to be set out in the Law on Financial Management
Income tax exemption
Deduction of capital expenditure through special depreciation
All of the above
A domestic association or NGO that does not comply with the LANGO may face administrative measures such as:
A written notification from the MoC, suspension of its activities, monetary fine or de-registration of the association or NGO which does not include applicable criminal penalties yet.
A written notification, suspension of its activities, monetary fine or de-registration of the association or NGO imposed by the Ministry of Interior.
A verbal warning from relevant ministries, suspension of its activities, monetary fine or de-registration of the association or NGO.
None of the above.
Associations or NGOS that have been registered or has entered an MOU, have the rights to recruit employees for its services which must comply with:
The Law on Immigration, the Labor Law, and other legal provisions of the Kingdom of Cambodia
The Law on Commercial Enterprises
The Law on the General Statute of Public Enterprises
None of the above
According to the 1993 Constitution, what is the Supreme Law of the Kingdom of Cambodia?
Treaties and Conventions
Laws (Chhbab)
The Constitution
Royal Decree (Preah Reach Kret)
According to the 1993 Constitution, what are the powers of the state separated into?
The Legislative Branch, the Executive Branch, and the King
The Legislative Branch, the Executive Branch, and the Judiciary
The National Assembly, the Royal Government, and the King
The National Assembly, the Senate, and the Judiciary
According to the 1993 Constitution, as amended in 1999, how many votes shall be required for the National Assembly to pass a vote of confidence in the Royal Government?
Two-thirds majority
Three-fourths majority
Relative majority
Absolute majority
In the judicial system of the Kingdom of Cambodia, which court does only hear questions/matters of law (Ang Chbab)?
Courts of First Instance
Military Court
Courts of Appeal
Supreme Court
According to the 2007 Civil Code, in what case a person who declares the intention may rescind the contract as a defective declaration of intention?
Where the declaration of intention is made as the result of a mistake
Where the declaration of intention is made as the result of the other party’s fraud, duress, or misrepresentation
Where the declaration of intention is made as the result of the other party’s act that aims to obtain excessive profits and exploits the surrounding situation
All the above
According to the 2007 Civil Code, what is a “Person under Curatorship”?
A person who is under the age of eighteen (18).
A person who remains in a habitual condition of lacking the ability to recognize and understand the legal consequences of his actions due to mental disability.
A person whose ability to recognize and understand the legal consequences of his actions is substantially impaired due to mental disability
All the above
According to the 2007 Civil Code, what is the period of extinctive prescription for claiming compensation for damages arising from non-performance, starting from the occurrence of the damages?
Three (3) years
Five (5) years
Ten (10) years
Fifteen (15) years
According to the 2007 Civil Code, what is the prescribed period for a lease of an immovable that is not executed in writing?
Five (5) years
Fifteen (15) years
Fifty (50) years
Without specified terms
According to Sub-Decree No. 224 on Construction Permit dated 30 December 2020, what is the maximum surface area for which Governors of Cities-Districts-Khans are authorized to issue permits for construction works?
More than three thousand (3,000) square meters
Equal or less than 3,000 (three thousand) square meters
Equal or less than 500 (five hundred) square meters
Equal or less than 300 (three hundred) square meters
According to Sub-Decree No. 82 on the Proportion and Calculation of Percentage of Private Units that Can Be Owned by Foreigners in a Co-Owned Building dated 29 July 2010, what percentage of the total surface-size can legally qualified foreigners own in private units of a co-owned building?
Thirty (30) percent
Forty-nine (49) percent
Fifty-one (51) percent
Seventy (70) percent
According to Prakas No. 064 on the Real Estate Service Businesses dated 27 December 2022, what are real estate services?
Real estate management services
Real estate valuation/appraisal services
Real estate agency services
All the above
According to Prakas No. 089 on the Management of Real Estate Development Businesses dated 20 January 2022, which of the following statements about a Permit or License is incorrect?
A real estate development business of a residential building or co-owned building with four (4) houses, three (3) villas, three (3) units, or the dividing of the land parcel shall have a Permit or License.
For a Permit or License of Type 1, an individual applying for a Permit or License must have a business guarantee deposit of two (2) percent of the total construction capital or in stages.
A Permit or License of Type 2 is granted to a real estate developer who has started construction of his/her project and simultaneously announced it for sale.
Advertising for a real estate development project in any form is prohibited for a project that does not yet have a Permit or License
According to the 2014 Law on Organization of Courts, which of the following sentences about the Courts of Appeal is incorrect?
The Courts of Appeal consist of the Phnom Penh Courts of Appeal, Tbong Khmum Regional Courts of Appeal, Battambang Regional Courts of Appeal, and Preah Sihanouk Regional Courts of Appeal
The Courts of Appeal are the higher court
The Courts of Appeal review both the questions/matters of law (Ang Chbab) and facts (Ang Het)
The Courts of Appeal are heard by one (1) judge
According to the 2006 Code of Civil Procedure, which court shall have jurisdiction over domestic arbitration awards?
Supreme Court
Courts of Appeal
Military Court
Courts of First Instance
According to the 2006 Law on Commercial Arbitration, if the parties fail to agree on the number of arbitrators, how many arbitrators shall be appointed?
One (1) person
Three (3) people
Five (5) people
Seven (7) people
According to the 2007 Law on Insolvency, which of the following statements defines “Insolvency”?
The situation where a businessperson or legal entity cannot repay debt and is pronounced insolvent by the Ministry of Commerce.
The situation where a businessperson or legal entity cannot repay debt and is pronounced insolvent by the General Department of Taxation.
The situation where a businessperson or legal entity cannot repay debt and is pronounced insolvent by the court
The situation where a businessperson or legal entity cannot repay debt and is pronounced insolvent by the administrator
Which of the following statements is true regarding the right to receive remaining assets of a company upon its dissolution or winding-up in case the Articles of Incorporation (AoI) does not mention such right?
The right to receive remaining assets is only granted to the shareholders who hold a majority of the shares.
The right to receive remaining assets is determined before the company pays off all its liabilities.
The remaining assets will be shared among all shareholders according to their respective rights
The right to receive remaining assets is granted to the shareholders who hold larger shares only
When must the initial directors of a company organize the first shareholders' meeting, according to Article 117 of the LCE?
Within six (6) months from the date of incorporation
Within one (1) year from the date of incorporation
Within two (2) years from the date of incorporation
After receiving approval from the Ministry of Commerce
According to Article 124 of the LCE, how is the decision to remove one or more directors made?
By a simple majority of the voting directors
By a two-thirds majority of the voting shareholders
By the unanimous vote of all shareholders
By the absolute majority (50% plus one) of the voting shareholders
When can a director end their term of office according to the information provided?
Only upon completion of a project term
Only with the approval of the Ministry of Commerce
Upon resignation by the director
Only upon reaching retirement age as specified in the company's AoI
According to Article 119 of the LCE, which of the following is NOT a right granted to directors in the AOI?
Propose amendments to the articles of incorporation
Declare dividends in accordance with accounting principles
Approve the salaries of directors
Give a guarantee on behalf of the company
Which of the following statements is TRUE regarding the delegation of duties by the board of directors?
Delegation is not allowed under any circumstances
Delegation is only permitted to individual directors
Delegation allows for effective day-to-day operation without daily supervision by the board
Delegation is only allowed for minor administrative tasks
Which of the following is a primary mechanism of corporate governance as outlined in the information provided?
The obligation to delegate day-to-day operations to employees
The requirement to organize meetings and maintain record of meetings
The specification of powers and rights of directors in the AoI
Answer B and C
Which of the following statements accurately describes a mechanism for directors to disagree and dissent as outlined in the information provided?
Directors are required to verbally express their dissent during board meetings
Directors must submit their dissent in writing to be recorded in the minutes of the meeting or sent to the secretary of the meeting before the meeting is adjourned
Article 142 of the LCE mandates that directors must publicly announce their dissent on social media
Directors have no formal process to express disagreement with board decisions
Which of the following statements accurately reflects the relationship between ethics and corporate governance as outlined in the information provided?
Ethics in corporate governance are solely based on religious beliefs and do not consider societal expectations
The law provides a maximum standard for ethical behavior in companies, which should be strictly adhered to
Directors of companies are not expected to consider ethical values beyond what is legally required
Ethics in corporate governance serve as a bridge between legal requirements and societal expectations for companies and their management
