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WorksheetsLegal Aspects of Business Entities
Total questions: 10
Worksheet time: 8mins
Name
Class
Date
1.
Define partnership.
a)
The relation which subsists between persons carrying on business in common with a view of profit
b)
The relation which subsists between persons carrying on business
c)
The relation which subsists between two persons carrying on business
d)
The relation which subsists between persons carrying on business in with a view of profit
2.
It is owned by one entrepreneur and sometimes, the owner may employ a worker for assistance. This refers to
a)
Sole proprietorships
b)
Partnership
c)
Public company
d)
Private company
3.
When the partners mutually agreed to dissolve the partnership, it will be dissolved by
a)
operation of law
b)
revocation
c)
agreement
d)
supervening illegality
4.
The principle that states a company is a person separate from its members is known as
a)
bona fidei
b)
separate legal entity
c)
utmost good faith
d)
caveat emptor
5.
What is the maximum number of partners is partnership?
a)
25
b)
30
c)
20
d)
35
6.
Partnership may be dissolved in following manner, EXCEPT:
a)
by operation of law
b)
by court order
c)
by breach
d)
by death or bankruptcy
7.
Choose the statement which is TRUE from the below:
a)
a partnership may be formed orally or in writing
b)
there is no legal relationship between partners in a firm
c)
a company can be established orally or in writing
d)
a company may be dissolved informally
8.
The authority of a partner is not limited to the express authority given by the firm. A partner is authorised by the express and implied authority
a)
True
b)
False
9.
A minor can be responsible for any contractual liability for the firm's debt
a)
True
b)
False
10.
Partnership is the relation hiwhc subsists between persons carrying on business with a view of profit
a)
False
b)
True
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