Partnership Quiz

What is a partnership in business?

• A form of business where two or more people share ownership and management responsibilities

• A form of business where the government owns and manages the company

• A form of business where one person owns and manages the company

• A form of business where employees own and manage the company

How many persons are required to form a partnership?

• At least one person

• At least two persons

• At least three persons

• At least four persons

What is the basis of a partnership between partners?

• Email agreement

• Verbal agreement

• Written agreement

• Oral agreement

What is the maximum number of partners allowed in a partnership?

• 10 partners

• No maximum limit

• 50 partners

• 20 partners

What is the significance of sharing gains and losses in a partnership?

• Only losses are shared

• Neither gains nor losses are shared

• Gains and losses are shared

• Only gains are shared

What is the business motive required for a partnership?

• Non-profit motive

• Charity motive

• Profit gaining motive

• Social motive

What is the relationship between partners in a partnership?

• Customer-Supplier

• Principal-Agent

• Employer-Employee

• Competitor

What is the advantage of easy formation in a partnership?

• No formation required

• Written agreement for formation

• Oral agreement for formation

• Complex formation process

What is the disadvantage of unlimited liability in a partnership?

• Limited liability for debts

• No liability for debts

• Joint and individual liability for debts

• Liability only for profits

What happens to a partnership firm in case of the death of a partner?

• Dissolves automatically

• Requires re-registration

• Continues as before

• No impact