A partner who does not take part in the working of the firm is called
Sleeping partner
Nominal partner
Active partner
Partner by Estoppel
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
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
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.
The basis of partnership is
Utmost good faith
Money available for investment
Desire to work together
All of these
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
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
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 is formed by
Agreement
Relationship among persons
The direction of government
None of these
When a partnership liquidates its business, the sale of the non cash assets is called
Insolvency
Realisation
Recognition
Disposition
