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WorksheetsCBL-Midterm-002
Total questions: 45
Worksheet time: 23mins
Under the 2005 Law on
Commercial Enterprises as amended
(LCE), which of the following
business entities has unlimited
liability?
Sole proprietorship.
Private limited liability company.
Public limited liability company.
Single-Member Private Limited
Company
Under the 2005 Law on
Commercial Enterprises as amended
(LCE), a sole proprietorship has the
following characteristic:
Limited liability
One or more shareholders
The board of directors has up to 2
members only
One shareholder
Under the LCE, a business entity
acquires Cambodian nationality
when:
As long as it is registered in
Cambodia, regardless of any other
conditions
As long as its place of operations is in
Cambodia, regardless of any other
conditions
One of its minority shareholders has
Cambodian nationality
None of the above
Under the LCE, a general
partnership corresponds to the
following characteristic:
When there are at least two partners
When at least one partner is a
general partner
When all the partners are jointly and
severally liable
When one partner assumes all liability
for everyone else
Under the LCE, a limited partner
in a limited partnership:
Assumes all sorts of liabilities of the
limited partnership
Assumes only the liabilities of the
general partners
Has his/her liability up to the
capital he/she has invested
Can make decisions for the limited
partnership
Under the LCE, which of the
following statements is correct with
regards to the capital of a private
limited liability company:
Everyone must put in an equal amount
of capital
The wealthiest shareholder must put
in the most capital
In case the articles of incorporation do not specify the number of shares and their par value, a limited company must issue at least 1000 shares with each share having a par value of at least 4000 riel
None of the above
Under the LCE, shares of a
limited liability company can be:
In cash, in-kind, past services
In cash only
In cash and in-kind only
None of the above
Under the LCE, which of the
following is the special feature of a
public limited company?
A company with a minimum capital of
USD 10 million
A company with a minimum number
of 30 shareholders
The board of directors must have
at least 3 members
None of the above
Under the LCE, on which date the
company receives its legal entity
status?
On the day the board of directors are
appointed
On the day the main shareholder pays
up his capital
On the date shown on its certificate of incorporation
On the date its articles of
incorporation are submitted to the
ministry of commerce
Which institutions are the main
ones to file documents to in order to
establish a new company?
Ministry of commerce only
Ministry of Labor and Vocational
Training only
Ministry of commerce, ministry of
labor and vocational training, the
general department of taxation, and
the national social security fund
A company registration agency
Under the LCE, the so-called
Duty of Care of the members of the
board of directors refers to:
The fact that directors must be
knowledgeable
The fact that directors must care,
be honest, loyal, knowledgeable and
diligent
The fact that directors make important
decision
The fact that directors respect and
follow directions from the shareholders
Under the LCE, in which of the
following areas the Board of
Directors cannot decide by
themselves alone?
Decision to borrow money
Decision to close account books of
each financial year
Decisions on changing provisions
in the articles of incorporation
Decision of a member to resign
Under the LCE, when a company
performs an act in violation of its
articles of incorporation, such act is:
Always valid no matter what
Valid if supported by the minority
shareholders
Valid for a third party who cannot be
assumed to know about the irregularity
of the act
None of the above
Under the general concept of
law, which of the following is not a
characteristic of law?
Law is understandable by all
Law normally applies to all
Law is coercive
Law is binding
Under the general concept of
law, which of the following
statements best describe the
sources of law?
Law, jurisprudence, doctrine, and
speeches of leaders
Law, doctrine, reasons
Law, jurisprudence, doctrine,
customs
None of the above
Under the current Constitution of
Cambodia, which of the following
statements is correct?
The judiciary has the biggest power
because it has the supreme court
The Executive power is the strongest
because it has a prime minister
There is a separation of powers
between the legislative, executive and
judicial powers
There is a separation of powers
between the executive and judicial
powers only
Under the current Constitution of
Cambodia, which political institution
may remove a prime minister from
office?
The Senate since it is the upper house
The National Assembly following a
certain process
The King
None of the above
Under the 2014 Law on
Organization of the Court System,
which of the following statements is
correct with regard to the specialized
chambers at each lower court
(Phnom Penh and provincial courts)?
Criminal chamber, civil chamber,
commercial chamber, labor chamber
Criminal chamber, civil chamber,
commercial chamber, administrative
chamber
Criminal chamber, civil chamber, labor
chamber, administrative chamber
Criminal chamber, labor chamber,
administrative chamber, commercial
chamber
Under the Civil Code, a sales
purchase contract of a real property
is validly formed when:
Both parties have made verbal
agreement
Both parties have visited the location
and agreed on the size
Both parties have hired an attorney-atlaw
to stamp
Both parties have signed the
legally prescribed form in writing
Under the Civil Code, there is a
loan for use when:
The user pays for the use.
The user has to return the object
after using it
The owner is a friend
None of the above
Under the Civil Code, there is a
loan for consumption when:
The subject of the loan is money or
other consumable products
The subject of the loan is money only
The civil code does not mention this
type of loan
None of the above
Under the Civil Code, the main
difference between a loan for use
and a lease agreement is:
The fact that a lease agreement only
refers to houses and land
The fact that a loan for use covers a
short duration
The fact that there is a rent to pay
in the case of a lease agreement
None of the above
Under the Civil Code, which
statements below best describe the
various categories of possible
breaches of a contract?
Delay, impossible performance,
incomplete performance,
performance not in accordance with
the intended purpose
Delay, death of a party, incomplete
performance
Death of both parties, delay,
incomplete performance
Depending on the economic
conditions of the party at fault
Under the Civil Code, what are
the potential remedies against a
contractual breach?
Defame the party at fault online
Termination, damage, or specific
performance
Specific performance only
Termination and damage only.
Under the Civil Code, which of
the following statement best
describes about an offer that has an
expiry date?
The person making the offer
cannot change her mind before the
expiry date
The person can still change her mind
if she has a good reason
The offer will remain effective within
the first 24 hours immediately following
the deadline
None of the above
Under the Civil Code, a contract
is invalid if:
It is not drafted by an attorney-at-law
It is not made in front of a witness
whatever the subject matter is
It is not recognized by the chief of the
commune or Sangkat
The subject matter is illegal
Under the Civil Code, which of
the following is not a valid reason for
rescinding a contract?
One party did not like the behavior
of the other during the drafting stage
Error
Duress
Misrepresentation
Under the Civil Code, the right to
ownership gives the owner of an
apartment:
The right to use, to take bene^ts, to
dispose of the property
Only the right to sell the property when
she needs money
Only the right to use or sell the
property
The right to destroy it using whatever
means she pleases
Which of the following
statements best describes how the
right to ownership over a real
property (immovable) may be
acquired:
Contracts, inheritance, natural
occurrences
Contracts and production
Perpetual lease and natural
occurrences
Both b&c.
Which of the following
statements best describes how the
right to ownership over a personal
property (movable) may be acquired:
Production and contract
Contract, inheritance, production
Contract and long-term loan for use
Both a&c
Under the Law on Insolvency
(bankruptcy), which is the minimum
financial threshold of an outstanding
debt before a creditor may sue?
There is no such financial threshold
5 million riels.
8 million riels
10 million riels
Under the Law on Insolvency,
which of the following statements
best describes about the so-called
Temporary Administrator:
Works for free of charge because the
company is already in financial troubles
Receives payment from the
government
Receives payment from the court
which appoints him/her
Receives payment from the
company being sued
Under the Law on Insolvency,
which is not a main role of the
Temporary Administrator?
Reports to the Board of Directors of
the company as instructed by the Board
Reports to the judge who appoints
him/her
Meets with creditors
Prepares a plan of compromise
Under the Law on Insolvency,
which of the following statements
best describes the order of payment
following the completion of a
liquidation process?
Shareholders, creditors, shareholders’
children, taxes
Employee, secured creditors, taxes
Employee, secured creditors, taxes,
non-secured creditors
Employee, taxes, secured creditors,
non-secured creditors
Under the Law on Commercial
Arbitration, which of the following
statements best describes the
freedom the parties have:
Choose the law to apply, the venue to
go to, the language of the proceedings
Choose the venue to go to, the law to
apply, the number of the arbitrators, and
the language of the proceedings
Only choose the law to apply and
the venue to go to
All the above answers are correct
Under the Law on Commercial
Arbitration, following the issuance of
an arbitral award, a party may:
Ask the arbitrators to decide again
although the arbitration process was
conducted in a regular manner
Look for more senior arbitrators who
might know better
Bring the case to another arbitration
tribunal overseas
Seek Court of Appeals to set aside the award if the arbitration process was irregular such as when a proper notice of the appointment of arbitrator was not given
Under the Law on Commercial Arbitration, which of the following
statements is correct with regard to the enforcement in Cambodia of an
award issued by a foreign arbitration tribunal?
The winning party must seek help
from the United Nations
The winning party must seek help
from the prime minister of Cambodia
The winning party may bring the award
to the Court of Appeals in Cambodia
All the above answers are wrong
Under the Cambodia’s 1997
Labor Law as amended, an
employment contract is governed by
that law if:
Both the employer and the employee
are Cambodians
The employment contract was signed
in Cambodia
The payment of the salary is done via
a Cambodia-based bank
The performance of the work is in
Cambodia
Under the Cambodia’s 1997
Labor Law as amended, the seniority
pay applies to:
All types of employment contracts
Unfixed Duration Contract (UDC)
only
Fixed Duration Contract (FDC) only.
Part-time employment only
Under the Cambodia’s 1997
Labor Law as amended, which is the
crucial legal element of a Fixed
Duration Contract (FDC)?
FDC is for an easy job
FDC is for work of less than a one-year
term
FCD must be done in writing
All the above answers are correct
Under the Cambodia’s 1997
Labor Law as amended, in case of
termination, what is the prior notice
period for an Unfixed Duration
Contract (UDC) of 7 years?
Two-week notice
One-month notice
Two-month notice
Three-month notice
Under the Cambodia’s 1997
Labor Law as amended, in case of
resigning from a Fixed Duration
Contract (FDC), strictly legally
speaking, which of the following
statements is correct?
The employee must provide a
notice period of one month
The employee must provide a notice
period of at least two weeks
The law does not require such
obligation
Both a&b are correct depending on the
real situation
Under the current Cambodian
Securities Exchange, which
statement on shareholders’ equity is
correct concerning the listing on the
Main Board?
Shareholders’ equity must be at least
USD 5 million (5 000 000)
Shareholders’ equity must be at least
USD 7 million (7 000 000)
Shareholders’ equity must be at least
USD 7.5 million (7 500 000)
All the above answers are wrong
Under the current Cambodian
Securities Exchange, which
statement on shareholders’ equity is
correct concerning the listing on the
Growth Board?
Shareholders’ equity must be at
least USD 100 000
Shareholders’ equity must be at least
USD 500 000
Shareholders’ equity must be at least
USD 750 000
All the above answers are wrong
Under the 2016 Law on
Accounting and Auditing, the period
for keeping company documents as
proofs for the audit purposes is:
3 years
5 years
7 years
10 years
