Registration of Partnership is
Compulsory
Optional
Not necessary
None of these
The partner is a limited partnership that has unlimited liability is referred to as the
Limited partner
Special partner
Sleeping partner
General partner
The maximum number of members in non-banking firm is
10
12
15
20
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
When a partnership liquidates its business, the sale of the non cash assets is called
Insolvency
Realisation
Recognition
Disposition
A partnership is formed by
Agreement
Relationship among persons
The direction of government
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 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