A partnership firm may be registered under
1949 Act
1956 Act
1932 Act
1957 Act
In partnership there exists a relationship of
Principal and agent
Owner and servant
Employer and employee
Debtor and Creditor
Which of these is not an advantage of the partnership form of business?
Mutual Agency
Ease of formation
Pooling of resources
Minimum government regulations
The liquidation of a partnership
Cannot be a voluntary act of the partners
Terminates the business
Eliminates only those partners with a capital deficiency
Cannot occur unless all partners approve
In the liquidation of a partnership, any gain or loss on the realisation of non cash assets should be allocated
First to creditors and remainder to partners
To the partners on the basis of their capital balances
To the partners on the basis of their profit/loss sharing ratios
Only after all creditors have been paid
The partner is a limited partnership that has unlimited liability is referred to as the
Limited partner
Special partner
Sleeping partner
General partner
The partnership agreement would normally include each of the following except the
Date of the partnership commencement
Principal location of the firm
Surviving family members in the event of a partner's death
All of these should be included
A partner who does not take part in the working of the firm is called
Nominal partner
Active partner
Partner by Estoppel
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
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
