Independence Day Deal! Unlock 25% OFF Today – Limited-Time Offer - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

CIMA Exam CIMAPRA17-BA4-1 Topic 8 Question 91 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 91
Topic #: 8
[All CIMAPRA17-BA4-1 Questions]

Which of the following is INCORRECT regarding the differences between a general partnership and a company limited by shares?

(i) Both a partnership and a company are formed by registration with the Registrar of Companies.

(ii) All partners are agents of the firm and all directors are agents of the company.

(iii) All partners are fully liable for the firm's debts and the company is fully liable for its own debts.

Show Suggested Answer Hide Answer
Suggested Answer: B

Contribute your Thoughts:

Daniela
2 months ago
I'm going with (C). Gotta watch out for those sneaky differences between partnerships and companies, you know? It's like a legal version of spot the difference!
upvoted 0 times
Rosio
15 days ago
You make a good point. I might have to reconsider my choice now.
upvoted 0 times
...
Roxane
1 months ago
Hmm, I see your point. But I'm still leaning towards (C) because of the registration requirement.
upvoted 0 times
...
Ricarda
1 months ago
I think it's actually (D). Partnerships and companies have different liability structures.
upvoted 0 times
...
...
Marge
2 months ago
Wait, are we sure this isn't a trick question? I heard the Registrar of Companies likes to play mind games with us. *laughs nervously*
upvoted 0 times
...
Haydee
2 months ago
I'm pretty sure the answer is (D). All partners are fully liable, while the company is only liable for its own debts. Easy peasy!
upvoted 0 times
...
Shelton
2 months ago
The correct answer is (C). (i) and (iii) are the incorrect statements. This is a classic trick question!
upvoted 0 times
Stephen
2 months ago
User 2
upvoted 0 times
...
Janessa
2 months ago
User 1
upvoted 0 times
...
...
Howard
2 months ago
But doesn't a general partnership have unlimited liability for its debts, while a company limited by shares has limited liability?
upvoted 0 times
...
Raylene
2 months ago
I think (i) and (iii) are the incorrect statements. A partnership is not formed by registration, and partners have unlimited liability, while a company has limited liability.
upvoted 0 times
Gary
17 days ago
D) (iii) only
upvoted 0 times
...
Vanna
20 days ago
C) (i) and (iii) only
upvoted 0 times
...
Mila
21 days ago
B) (i) and (ii) only
upvoted 0 times
...
Goldie
2 months ago
A) (i) only
upvoted 0 times
...
...
Malissa
2 months ago
Option (i) is incorrect. A general partnership is not formed by registration with the Registrar of Companies, but a company limited by shares is.
upvoted 0 times
...
Elbert
3 months ago
I disagree, I believe the answer is D) (iii) only.
upvoted 0 times
...
Howard
3 months ago
I think the answer is C) (i) and (iii) only.
upvoted 0 times
...

Save Cancel
az-700  pass4success  az-104  200-301  200-201  cissp  350-401  350-201  350-501  350-601  350-801  350-901  az-720  az-305  pl-300  

Warning: Cannot modify header information - headers already sent by (output started at /pass.php:70) in /pass.php on line 77