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

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 91
Topic #: 8

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.

A(i) only

B(i) and (ii) only

C(i) and (iii) only

D(iii) only

Show Suggested Answer

Suggested Answer: B

by Pedro at Jul 03, 2024, 10:30 PM

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Daniela

1 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!

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Roxane

17 days ago

Hmm, I see your point. But I'm still leaning towards (C) because of the registration requirement.

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Ricarda

24 days ago

I think it's actually (D). Partnerships and companies have different liability structures.

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Marge

1 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*

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Haydee

1 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!

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Shelton

2 months ago

The correct answer is (C). (i) and (iii) are the incorrect statements. This is a classic trick question!

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Stephen

29 days ago

User 2

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Janessa

1 months ago

User 1

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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?

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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.

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