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WorksheetsHigher Accounting - Partnership Accounts Theory
Total questions: 12
Worksheet time: 6mins
How many people can make up a partnership?
2-22
2-20
2
2-12
What type of partner is outlined below:
A partner with unlimited liability for all the business debts
Active/General
Sleeping
Limited
Named
What type of partner is outlined below:
A partner not involved in the day-to-day running of the business
Active/General
Limited
Liability
Sleeping
What type of partner is outlined below:
A partner with limited liability. Less risky, so a smaller share of profits.
Limited
Unlimited
Sleeping
Active/General
The amount of control each parter has is determined formally through a legal document known as a....
Partnership Staus
Partnership Agreement
Partnership Legality
Partnership Creed
Which of the following is NOT an element of a Partnership Agreement?
Rights and duties of each partner
Division of profit and losses
Salaries (if any) to be paid to partners
Partner debit card PIN codes in case of emergency
What happens if there is no partnership agreement in writing?
The partnership cannot legally exist
The partner who invested the most equity automatically has the deciding vote
The government will provide 30 days notice to create a partnership agreement
The Partnership Act 1890 will automatically apply
Which of the following is NOT a ruling of the Partnership Act 1890?
Partners share profit and losses equally
Interest of 5% should be paid on partnership loans
No new partners without consent of all
If 50% of partners agree, new partners can be admitted
Which of the following is NOT an advantage of forming a partnership?
Sharing of management and control
Opportunities for specialisation
More finance than a sole trader, and greater borrowing power
Higher chance of arguments
Which of the following is a NOT a disadvantage of forming a partnership?
Business will require to be ended on the death of any partner
Disagreements can occur
Unlimited liability for debts
Greater variety of skills and strenghs
The Appropriation section shows how the profits of the business are being used and shared amongst its owners
True
False
Which of the following is NOT an advantage of admitting a new partner?
Increased equity is brought into the business
More expertise or specialist knowledge
Workload can be shared
Profits are shared
