Partnership law

( ) is not a legal person by itself.

• a limited liability partnership

• a partnership

• a corporation

• a company

If several people group together to raise funds or to run a charitable or religious organization, they can be said to have formed a partnership.

• True

• False

The receipt by a person of a debt or other liquidated amount, by instalments or otherwise, out of the accruing profits of a business does not of itself make him a partner in the business or liable as such.

• True

• False

( ) are an alternative business vehicle which combines the characteristics of a company and a conventional partnership.

• General Partnership

• Wholly Owned Subsidiary

• Joint Venture

• Limited liability partnerships

The limited liability partnership has the legal status of a body corporate which is capable of suing and being sued in its own name, holding assets and doing such other acts and things in its name as bodies corporate.

• True

• False

Unlike other forms of a limited liability partnership, the partners of a professional practice limited liability partnership (LLP) must consist of natural persons who are practising ( ).

• several professions

• the same profession

• different professions

• an alternative profession

A partnership is easier to form than a company. The general rule is that everyone ( ) is capable of entering into a partnership agreement.

• sui juris

• actus reus

• obiter dictum

• ultra vires

( ), a minor can, if he wishes, discharge himself from all future debts of the firm by terminating the partnership. Failure to repudiate the agreement will make him liable for the partnership debts.

• On the death of his/her partner

• On reaching the age of 21

• On reaching the age of majority

• On reaching the sufficient amount of earnings

Which of the following is a significant feature of a limited liability partnership?

• Compliance officer

• Human Resource officer

• Monthly declaration

• Chief Financial Officer

If the third party has notice of the agreement between the partners that there are some restrictions on the power of any one or more of them to bind the firm, the firm will not be bound in respect of any act done in contravention of the agreement.

• True

• False