Date __________________________

Student Name ________________

Students ID_____________________
BUSINESS LAW QUIZ 1
1. Not all the enterprise have to register for their business
a. True
b. False
2. The maximum numbers of people can be employed or worked for a private
enterprise is 50 (not including the owner)
a. True
b. False
3. A private may issue bonds to raise fund
a. True
b. False
4. The owner of a private enterprise liable for business activities of the enterprise to
the extent of capital contributed.
a. True
b. False
5. According to LOE 2005, general partner may not be restricted from withdrawing
their capital out of the partnership.
a. True
b. False
6. Limited partners have the obligation to discharge in full the debts of the
partnerships
a. True
b. False
7. According to LOE2005, each individual/household can only establish 1 business
a. True
b. False
8. The owner of a LLC1 as an individual must register as the legal representative of
the company
a. True
b. False
9. Legal representative of LLC can leave the country for more than 30 days if he/she
appoints someone to become the legal representative
a. True
b. False
10. The owners of LLC1 as an organisation can reduce their charter capital
a. True
b. False
11. Which of the following is incorrect about partnership?
a. Limited partners are allowed to vote at the meeting of partner council.
b. Limited partner are not allowed to manage the partnership

c. Only general partner can become the chairman of member council.

d. All of the above
e. None of the above
12. The owner of a private enterprise has the right to
a. Increase but not decrease the charter capital
b. Decrease but not increase the charter capital
c. Increase and decrease the charter capital
d. Neither Increase nor decrease charter capital
e. None of the above
13. According to LOE 2005, In an LLC 2+, members can demand the company to buy
back their share of capital contribution if:
a. They disagrees with the re-organization plan of the company
b. If the company is on the edge of bankruptcy
c. They disagrees with the investment plan of the company
d. they need to get their money back in order to deal with their own financial
problem
e. none of the above
14. In the form of Partnership, which of the following is correct about partnership?
a. An unlimited liability partner shall be allowed to act as the owner of a
private company or as an unlimited liability partner of another partnership if
he/she has obtained the consent from other unlimited liability partners.
b. An unlimited liability partner has the right to transfer all or part of its share
of capital in the company to another person without the consent of other
unlimited liability partners.
c. An unlimited liability partner shall be allowed to conduct in his/her own
name or in the name of another person the same line of business as the
partnership for his/her personal benefit or to serve the benefit of another
organization or individual.
d. All of the above
e. None of the above
15. Which of the following is not true about the organizational and management
structure of a 1 member Limited Liability Company?
a. A 1 member Limited Liability Company must always have a Members
Council.
b. A 1 member Limited Liability Company may not have an Inspection
Committee.
c. The owner always has the highest decision-making authority of the
company.
d. None of the above
16. Which of the following business the owner will not have to use their own property
to cover for the business debt?
a. Household business

b. Partnership
c. Private enterprise
d. LLC1 and 2+
e. None of the above
17. In an LLC2 plus, any members who want to become general director need to hold at
least ____________of the total shares
a. 10%
b. 15%
c. 20%
d. 25%
e. None of the above
18. Which of the following is not true about Partnership?
a. The chairman of partner council are chosen among the limited liability
partners and unlimited liability partner
b. An unlimited liability partner shall be entitled to withdraw capital from the
partnership any he/she want
c. limited liability partners shall be entitled to be legal representative before the
law and organize management of the daily business activities of the
partnership.
d. All of the above
19. Which of the following represents a characteristic of a One-member limited liability
company?
a. One-member limited liability company has a legal entity status.
b. One-member limited liability company may issue shares.
c. One-member limited liability company does not have a Members Council.
d. A and C
20. Which of the following characteristic group represents the legal form of
partnership?,
a. Has a legal entity status; must have at least 1 limited liability partner and 1
unlimited liability partner
b. Does not have a legal entity status; must have at least 1 limited liability
partner and 1 unlimited liability partner
c. Has a legal entity status; must have at least 2 limited liability partner and 1
unlimited liability partner
d. Has a legal entity status; must have at least 1 limited liability partner and 2
unlimited liability partner
e. All of the above

Bonus: Why limited partners are not allowed to be in charge of managing the partnerships?

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Answer Sheet
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