PARTNERSHIPS

Under which following circumstances will retiring partners NOT continue to be liable for debts of the PT?

• if other partners agree to waive their liabilty

• if creditor discharges them from liabilty

• if retiring partner informs creditor of their retirement

Under PA 1961, estate of deceased partner will be liable

• to existing debts of firm

• to the past, present and future debts of firm

• to firm's debts prior to deceased's premise

• to all of the firm's debts in which deceased is being held out as a partner of the firm

Which requirements in forming PT?

• business is managed by all active partners

• business must make profit

• there is an association between natural persons and artificial persons

Joint tenancy or tenancy in common is example of?

• contract

• PT

• agency

Which following probable legal consequence when partner in the firm misappropriated trust property

• firm and all partners jointly and severally liable to third party

• only wrongful partner liable to client

• firm and other partners are civilly liable to third party but can later sue wrongful partner for reimbursement

• firm and wrongful partner are equally punishable for criminal act of breach of trust

As min, which following formalities necessary to form unlimited liability PT?

• written partnership agreement

• decision by partners to set up business together

• registration of PT by virtue of Registration of Business Act 1956

Which following statements does NOT fall within requirements of PT?

• business must be carried on with view of profit

• relation between persons

• carrying on business in common

• business must be managed by all partners

which TWO following events terminated unlimited liability PT?

1) notice by partner

2) end of agreed fixed period of time for PT

3) absence of partner

4) disagreement between partners

• 1,2

• 1,3

• 2,3

• 3,4

which following statements regarding PT is correct?

• partner can be individual person/ registered company

• business must be profitable

• PT must exist for more than single business transaction

which following statements INCORRECT about LLP business?

• partners and PT are separate entities

• partners have unlimited liability for debts of PT

• partners may not take part in mgt business

• partners of pro. practice LLP must consist if natural persons who practicing the same profession