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Partnership

Total questions: 16

Worksheet time: 12mins

Name
Class
Date
1.

A partnership has between 2 and 20 ______________.

a)

employees

b)

shareholders

c)

owners

d)

customers

2.

To start a partnership business, what should be the minimum number of partners?

a)

2

b)

10

c)

4

d)

20

3.

The maximum number of members in a Partnership is ____.

a)

10

b)

20

c)

50

d)

Unlimited

4.

In partnership, partners liabilities are

a)

Limited

b)

Unlimited

c)

Limited to the capital invested

d)

Limited to the amount mentioned

5.

Unlimited liability means

a)

the business is closed down because of too much debt

b)

the owners' personal possessions can be used to cover the firm's debts

c)

the bank will refuse to give loans to the business

d)

the business will struggle to attract investors

6.

Which of the businesses has unlimited liability?

a)

Sole Trader

b)

Partnership

c)

Both

d)

None

7.

Which is not a feature of a partnership business?

a)

Easy Formation

b)

Mutual Agency

c)

Limited Liability

d)

Two or more person

8.

What is the partnership written agreement known as?

a)

Partnership Contract

b)

Partnership Act

c)

Agreement

d)

Partnership Deed

9.
Which of the following is NOT included in a Deed of Partnership?
a)
How the profit is to be split between the partners
b)
The name of the partnership's accountant
c)
The responsibilities of each partner
d)
The date the partnership started up
10.

Which of the following listed would be an example of a partnership?

a)

the fire service

b)

lawyer's office

c)

local councils

d)

supermarkets

11.

Seema and Beena partnered together to provide food and clothing to the needy by collecting it from the neighbourhood. Can this be called a partnership firm

a)

Yes

b)

No

c)

Maybe

d)

None of the above

12.

A _______________ partner is one does not take part in the day to day running of the business.

a)

Active

b)

Sleeping

c)

Secret

d)

Nominal

13.

Decision is taken in partnership firm

a)

Individually

b)

By the partner who has invested more money

c)

By anyone

d)

Mutually ( all partners together)

14.
It is easier to raise finance in a partnership because
a)
the partners have more personal wealth than a sole trader
b)
all the partners will invest a certain amount in the business
c)
the bank will give a partnership lower interest rates for all loans
d)
partnerships are the only type of business that can receive grants
15.
Which of the following is an advantage of being in a partnership?
a)
Ideas and decision making can be shared
b)
The most senior partner has responsibility for running the business
c)
Partners can have responsibility for many different areas of the business
d)
Each partner gets the same share of the profits
16.
In a partnership, all profits are shared between the partners.
a)
False
b)
True