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Partnership

Total questions: 6

Worksheet time: 5mins

Name
Class
Date
1.

Ram, Raj and Kiran are partners in a firm. All three of them handle different departments as they have expertise in those areas. They all equally share their duties and control the business operations which help in smooth working of the firm. Which feature of partnership is highlighted here?

a)

Membership

b)

Continuity

c)

Decision Making and Control

d)

Mutual Agency

2.

Meg and Ria run a boutique in a partnership, sharing profits and losses equally. The assets of the firm are worth ₹50,000, but the firm’s debts amount to ₹80,000. Who will be responsible to pay the debt of ₹30,000 over and above the assets?

a)

Debt will be paid wholly by Meg

b)

Debt will be paid wholly by Ria

c)

Debt will be paid equally by Meg and Ria

d)

Debt will be not be paid by Meg or Ria

3.

Which of the following statement is true?

a)

Partnership is registered under Partnership Act 1986

b)

A minor can't be partner

c)

Written agreement among partners is called partnership

deed

d)

There should be minimum 3 persons to start a partnership

4.

Partnership firm is not legally required to publish its accounts and submit its reports. Which merit does this imply?

a)

Sharing of risks

b)

Secrecy

c)

More funds

d)

Easy formation

5.
What happens if a partner decides to leave the business?
a)
The other partners continue in the existing business
b)
The partnership is dissolved and reformed
c)
The partner who leaves is given compensation
d)
The partnership has to find a new lawyer
6.
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