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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Shelton

3 days ago

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

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Howard

6 days 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

8 days 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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Malissa

10 days 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

13 days ago

I disagree, I believe the answer is D) (iii) only.

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Howard

15 days ago

I think the answer is C) (i) and (iii) only.

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