TUTORIAL 5

TUTORIAL 5: FORMATION OF BUSINESS

Section A

1.       Which of the following TRUE about sole proprietorship?

          A        Creditors are not entitled to seized and sell the owner’s personal assets

          B        Consist of two or more person

          C        The owner can keep all profits

          D        The life span is not reflected by the death of owner

2.       The following refer to the main provision of  Partnership Act 1961, EXCEPT?

          A        Profits and losses are shared according to capital contribution

          B        No interest is payable on partner’s capital

          C        Every partner is entitled to participate in the management of the management

          D        No partner is entitle to a salary for participating in the business

3.       Which of the following is TRUE about the differences between partnership and company?

         

	Partnership	Company
A	Limited liability	Unlimited liability
B	If one of the partner die, the partnership will automatically dissolved.	If one of the owner die, the company still continue.
C	If one of the partner die, the partnership still continue.	If one of the owner die, the company will automatically dissolved.
D	Limited resources	Better management

4.       In order to register sole proprietorship and partnership, all the forms should be completed, EXCEPT

          A        Form 6

          B        Form P.N.A – 1A

          C        Form B

          D        Form C

5.       One of the business support agencies responsible in marketing assistance is

          A        SIRIM

          B        FRIM

          C        PUNB

          D        GUTHRIE

Section B

1.            Explain advantages and disadvantages of sole proprietorship.

(10 marks)