ICA AND IPA

A parthership firm must have a minimum of

• 1 partner

• only 2 partners

• any number more than 2 partners

• between 2 and 50 partners

The people starting a partnership are individually called as

• firm

• partners

• neither

A partnership business entity is referred to as a

• firm

• partner

• neither

The maximum number of partners in a partnership firm are

• 1

• 2

• 50

• no restriction can have any number one wants

A partner of a firm can have an oral agreement between them

• True

• False

A partnership agreement does not mention these things

• Name of the firm

• Names of the partners

• profit / loss sharing ratio

• registered address of the firm

• names of partners close friends

two men start a gambling business. Can they start it as a partnership firm?

• Yes

• No

In case the firm has no money to pay its creditors then the partners personal money must be used for making such payments. This is called as

• Limited Liability

• No liability

• Unlimited Liability

• Unlimited No Liability

If the agreement does not state the way in which profits are to be shared by the partners then

• They can decide each year how they want to share it

• The partner who has worked more gets more profit

• It is shared equally between the partners

Registering a partnership agreement is

• Compulsory by law

• Voluntary by law