PARTNERSHIP AND CORPORATION - GENERAL CONCEPT AND FORMATION

A characteristic describing a partnership as a juridical personality which can acquire, sell or dispose properties and incur obligation is called

• taxable entity

• legal entity

• mutual entity

• voluntary entity

a business such as partnership has to file its partnership agreement and register its firm's name with these government agencies except one

• Securities and Exchange Commission

• Department of Trade and Industries

• National Bureau of Investigation

• Bureau of Internal revenue

An industrial partner cannot be a general partner

• True

• False

A capitalist partner cannot be a limited partner

• False

• True

The partner's personal account which was collected by partnership and credited to its account receivable is a violation of the

• Partner's Equity Concept

• Business Entity Concept

• Realization Principle

• Accrued principle

It is easier to change ownership in a corporation than in a partnership

• True

• False

The partners have the following rights except one

• share in profits

• receive net assets at liquidation point

• co manage the business

• transfer ownership at will

A characteristic of unlimited liability is a disadvantage from the viewpoint of the partnership creditors

• True

• False

A loan due to a partner is presented in the statement of financial position as a

• Current Asset

• Current Liability

• Partner's Equity

• Fixed Assets

Which of the following is not a characteristic of all partnership

• Taxable entity

• Co -ownership of property

• Mutual agency

• voluntary association