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Business Law Quiz 1

1. The owner of LLC1 being an organization will manage all the business activities of
that company
a. True
b. False
2. LLC1 being an organization may not have the member council
a. True
b. False

3. A limited liability company of eleven (11) members must have an Inspection

Committee.
a. True
b. False

4. A 70 years old man does not have the right to establish an enterprise
a. True
b. False
5. Units of people’s armed force of Vietnam are allowed to use states asset to establish
business enterprise, but they are not allow to keep the profit for their own body of
units
a. True
b. False
6. Household business is the most basic type of enterprise
a. True
b. False
7. In an LLC2+, any members of the member councils have the right to run for the
position of President or General Director of the company.
a. True
b. false
8. Which of the following groups don’t have legal entity
a. Business household, private enterprise
 b. Business household, partnership
c. Private enterprise, partnership,
d. All of the above
e. None of the above
9. Which of the following are incorrect about household business
a. Household business don’t have to pay tax
b. household business don’t have legal entity
c. the owners of household business must be liable for all business activities
d. the head of the business are often the head of the household
e. none of the above

10. 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 time 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
11. When a partnership bankrupts,
a. Limited partners don’t have any obligation to pay for any debt
b. Limited partners share the same responsibility as general partner in covering all
the debt
c. Limited partners will be liable to the debt to the extent of all his/her assets
d. Limited partners will be liable for the debt to the extent of capital which
he/she contributed into the partnership

12. Limited partner have the rights to:

a. Withdraw all the capital from the partnership at anytime he/she want
b. Vote at Partner Council
c. Become general partner of another partnership
d. A and B are correct
e. A, B and C are correct
f. None of the above
13. Which of the following are not considered as a right of general partner
a. The rights to conduct business activities honestly and diligently
b. The rights to inspect asset, book of account and other document of the company
 c. The right to votes on matter of the company
d. The rights to be distributed with profits
14. Which of the following is not true about the organizational and management
structure of a two-or-more-member limited liability company?
a. A two-or-more-member limited liability company must always have a
Members’ Council.
b. A two-or-more-member limited liability company must always have an
Inspection Committee.
c. The Members’ Council always has the highest decision-making authority of
the company.
d. None of the above
15. Private enterprise owner _________ size of his capital contribution to the
enterprise’s activities:
a. Has no rights to reduce/increase
b. Has only rights to increase but not decrease
c. Has rights with certain conditions to reduce/increase
d. At any conditions has rights to reduce/increase
16. Which business can issue securities to raise fund?
a. Household business
b. Partnership
c. Private enterprise
d. LLC1 and 2+
e. None of the above

17. Owner of a one-member LLC may withdraw his contribution capital by:
a. Transfer capital to other persons (legal or natural)
b. Reducing legal capital
c. Profit distribution before tax
d. (b) and (c) are correct
e. None of the above

Mr A, Mr B, Mr C, Mr D, together, establish a partnership named Company ABCD. All of

them are general partners and the company has 1 limited liability partner who is Mr E.

18. If one day Mr A want to withdraw from the partnership, then:

a. MrA are not allowed to withdraw unless the company go bankrupt.
b. Mr A can’t withdraw unless all the other members approve
 c. Mr A can withdraw if B and C approve
d. Mr A can’t withdraw unless Mr B, Mr C and Mr D approve
e. None of the above
19. If Mr A carry out business activities which are beyond the registered line of
business, then:
a. Mr A will be terminated from the company as such actions are restricted.
b. No action need to be taken as such business activities will not fall within the
liabilities of the company
c. Mr A will be brought to the court
d. Mr A will be terminated and compensate for company ABCD
e. None of the above
20. If Mr A are declared missing, then:
a. His status as general partner will be terminated
b. Mr E will automatically become a general partner in other to replace Mr A
c. Mr A’s contributed assets will remain in the company until his return
d. Mr A’s heir will be enrolled and replaced Mr A as another general partner of the
company
e. None of the above