Types of Partners Quiz

What is the role of an active partner in a partnership firm?

• Contributes capital and takes part in the day to day activities of the business

• Contributes capital and shares profits only

• Contributes capital, manages the firm, shares profits and losses, and has unlimited liability

• Contributes capital, shares profits and losses, but has limited liability

What distinguishes a sleeping partner from other types of partners?

• Does not take part in the management of the firm

• Does not share profits and losses

• Does not contribute capital

• Does not participate in the day to day activities of the business

How is a secret partner different from other partners?

• Has limited liability

• Does not share profits and losses

• Is unknown to the general public

• Does not contribute capital

What is the characteristic of a nominal partner?

• Has limited liability

• Contributes capital and shares profits

• Allows the use of name but does not contribute capital

• Takes active part in managing the firm

Michael has been frequently seen at business meetings for the firm 'Tech Innovations' and has been involved in decision-making processes. When is Michael considered a partner by estoppel?

• When he actively participates in the management of the firm

• When he contributes capital to the firm

• When he allows the use of his name by the firm

• When he gives the impression of being a partner through his conduct

In the given scenario, why would Rani be liable for the debt of Simplex Solutions?

• Because she is considered a partner by estoppel

• Because she is a sleeping partner

• Because she is a nominal partner

• Because she is a secret partner

What is the liability of an active partner towards the creditors of the firm?

• Unlimited liability

• Limited liability

• Partial liability

• No liability

The relation of partnership according to Section 5 of Indian Partnership Act, 1932 arises from

• status

• Contract

• friendship

• None of these

Partnership” means

• joint venture

• agreement between the persons to share the profit of a business carried on between them

• agreement between the persons to do some work

• none of the above

In which of the following cases, a partnership exist:

• Several persons jointly purchase goods for resale with a view to

  divide the profits arising from the transaction.

• Persons (co-owners) who join in the purchase of goods for the

  purpose of dividing the goods themselves.

• A,B and C agreed that each should furnish Rs. 3000 worth of goods to be shipped on a joint venture, the profits is to be divided between them according to the amount of their several shipments

• Two tenants in common of a house and divide the rent equally