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

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.
B) (i) and (ii) only
A) (i) only
C) (i) and (iii) only
D) (iii) only

CIMAPRA17-BA4-1 Exam - 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.

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Suggested Answer: B

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

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Chana
8 months ago
(ii) is correct, all directors act for the company!
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Sunny
8 months ago
I thought companies had some liability protection?
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Ahmed
8 months ago
Wait, are all partners really fully liable?
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Nickie
8 months ago
Totally agree, (i) is definitely wrong!
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Ming
9 months ago
Partnerships aren't registered like companies.
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Nakita
9 months ago
I feel like (ii) is true since both partners and directors act on behalf of their entities, but I can't recall if that makes (i) incorrect.
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Larue
9 months ago
I practiced a similar question where it mentioned that all partners are liable for debts. I think (iii) is definitely correct, but I'm not sure about the others.
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Louvenia
9 months ago
I'm a bit unsure about the liability part. I thought companies had limited liability, but I'm not clear on how that applies to partnerships.
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Sherill
9 months ago
I remember that partnerships don't require registration, but companies do. So, I think (i) might be incorrect.
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Clay
9 months ago
I'm not entirely sure about this one. The wording is a bit tricky, and I want to make sure I don't miss any nuances. I'll need to re-read the question and options carefully before selecting my answer.
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Izetta
9 months ago
Okay, I've got this. The key is to identify which of the given statements is false. I'm pretty confident I can eliminate the incorrect option based on my knowledge of business structures.
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Katina
9 months ago
Hmm, this is a tricky one. I'm a bit confused about the distinction between partners being agents of the firm versus directors being agents of the company. I'll need to think this through step-by-step.
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Lashawn
10 months ago
This question is testing my understanding of the key differences between partnerships and companies. I'll need to carefully review the given information and options to determine which one is incorrect.
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Gretchen
10 months ago
Hmm, this one seems tricky. I'll need to think through the different Citrix ADM Analytics pages and what metrics they focus on.
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Lavonne
10 months ago
Hmm, I'm a bit unsure about this one. The audit committee's responsibilities can be tricky to remember. I'll need to carefully read through each option.
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Nydia
10 months ago
Hmm, I'm not too familiar with AppLocker. I'll need to review that option a bit more closely.
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Moon
10 months ago
I remember studying about different types of attacks, and I'm pretty sure this is a denial of service attack.
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Daniela
1 year 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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Rosio
1 year ago
You make a good point. I might have to reconsider my choice now.
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Roxane
1 year ago
Hmm, I see your point. But I'm still leaning towards (C) because of the registration requirement.
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Ricarda
1 year ago
I think it's actually (D). Partnerships and companies have different liability structures.
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Marge
1 year 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 year 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
1 year ago
The correct answer is (C). (i) and (iii) are the incorrect statements. This is a classic trick question!
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Stephen
1 year ago
User 2
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Janessa
1 year ago
User 1
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Howard
1 year 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
1 year 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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Gary
1 year ago
D) (iii) only
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Vanna
1 year ago
C) (i) and (iii) only
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Mila
1 year ago
B) (i) and (ii) only
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Goldie
1 year ago
A) (i) only
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Malissa
1 year 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.
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Elbert
1 year ago
I disagree, I believe the answer is D) (iii) only.
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Howard
1 year ago
I think the answer is C) (i) and (iii) only.
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