Partnerships Quiz

Which one of the following is NOT an essential feature of a partnership?

• a) There must be a business.

• b) The business must be carried on for profits.

• c) The business must be carried on by all the partners.

• d) There must be an agreement.

Limited partnerships were introduced by which Act of Parliament?

• a) Limited Partnerships Act

• b) Limited Liability Partnerships Act

• c) Partnerships Act

• d) Companies Act

After a partner's death the business is continued in the old firm name. Whether the legal heirs of the deceased partner are liable for any acts of the firm:

• The continued use of the name or of the deceased partner’s name as a part thereof shall not of itself make his legal representative or his estate liable for any act of the firm done after his death.

• If the estate of the deceased person’s property is insufficient to make good, the personal assets of the legal heirs will be liable for any of the acts done by the firm.

• The estate of the deceased person is liable for any of the act done by the firm.

• The legal heirs of the deceased partners shall be liable for any of the act done by the firm after the demise of the partner

To start a partnership business, what should be the minimum number of partners?

• a) 2

• b) 10

• c) 4

• d) 20

When does the Partnerships Act come into action in a firm?

• a) Where there is a conflict of interest and opinions in the firm.

• b) When capital contribution by the partners varies.

• c) When the partner's salary and interest on capital are not incorporated in the partnership deed.

• d) When there is no partnership deed.

In a general partnership, partners' liabilities are:

• a) Unlimited

• b) Limited to the capital of the business

• c) Limited

• d) Both A and C

In absence of a partnership agreement, what will be the percentage of profit sharing ratio between the partners?

• a) Unequal

• b) Equal

• c) It will depend on the experience of a partner

• d) It will depend on a partner's capital

Entering into a partnership deed in a Partnership Firm is?

• a) Necessary in Writing

• b) Necessary

• c) Verbal

• d) Not Necessary

What is the other name for Partnership Deed?

• a) Articles of Association

• b) Prospectus

• c) Principles of Partnership

• d) Articles of Partnership

In which kind of partnership does one partner have unlimited liability and other partner has limited liability?

• a) Partnership at will

• b) Limited liability partnership

• c) General partnership

• d) Limited partnership