fundamentals (theory)-1

Features of a partnership firm are:

• (A) Two or more persons are carrying common business under an agreement.

• (B) They are sharing profits and losses in the fixed ratio.

• (C) Business is carried by all or any of them acting for all as an agent.

• (D) All of the above.

Following are essential elements of a partnership firm except:

• (A) atleast two persons

• (B) there is an agreement between all partners

• (C) equal share of profits and losses

• (D) partnership agreement is for some business

In the case of a partnership, the act of any partner is:

• (A) Binding on all partners

• (B) Binding on that partner only

• (C) Binding on all partners except that particular partner

• (D) None of the above

Which of the following statements is true?

• (A) a minor cannot be admitted as a partner

• (B) a minor can be admitted as a partner, only into the benefits of the partnership.

• (C) a minor can be admitted as a partner but his rights and liabilities are same of adult partner

• (D) none of the above

Ostensible partners are those who:

• (A) do not contribute any capital but get some share of profit for lending their name to the business

• (B) contribute very less capital but get equal profit

• (C) do not contribute any capital and without having any interest in the business, lend their name to the business.

• (D) contribute maximum capital of the business.

The relation of partner with the firm is that of:

• (A) An owner

• (B) An agent

• (C) An owner and an agent

• (D) Manager

What should be the minimum number of persons to form a partnership:

• (A) 2

• (B) 7

• (C) 10

• (D) 20

Number of partners in a partnership firm may be:

• (A) maximum two

• (B) Maximum ten

• (C) Maximum one hundred

• (D) Maximum fifty

Liability of partner is:

• (A) Limited

• (B) Unlimited

• (C) determined by court

• (D) Determined by partnership act

Partnership deed is also called:

• (A) prospectus

• (B) articles of association

• (C) principles of partnership

• (D) Articles of partnership