The partnership form of business is
Restricted to law and medical practices.
Restricted to firms having fewer than 10 partners.
Not restricted to any particular type of business.
Most often used by relatively large organisations
Which of these is not an advantage of the partnership form of business?
Mutual Agency
Ease of formation
Pooling of resources
Minimum government regulations
A partnership firm may be registered under
1949 Act
1956 Act
1932 Act
1957 Act
It is true that a partnership
Is dissolved only by the withdrawal of a partner
Is dissolved upon the acceptance of a new partner.
Dissolution means the business must liquidate
Has unlimited life
The statement of financial position of a partnership will
Show a separate amount of equity for each partner
Show a separate drawing account for each partner
Show the amount of profit that was distributed to each of the partner
All of the above
An entry is not required in the liquidation of a partnership to record the
Payment of cash to creditors
Distribution of cash to the partners
Sale of non cash assets.
Allocation of a capital deficiency to partners with credit balances when the deficient partner is expected to pay the deficiency.
When a partnership liquidates its business, the sale of the non cash assets is called
Insolvency
Realisation
Recognition
Disposition
In partnership there exists a relationship of
Principal and agent
Owner and servant
Employer and employee
Debtor and Creditor
Registration of Partnership is
Compulsory
Optional
Not necessary
None of these
The maximum number of members in non-banking firm is
10
12
15
20
