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Q-Confras-Mod3

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

Easy. Which of the following is not a characteristic of partnership?

a)

Unlimited Life

b)

Co-ownership of Partnership Property

c)

Mutual Agency

d)

Unlimited Liability

2.

Easy. The partner who can lose only what he has invested in the business

a)

General partner

b)

Industrial partner

c)

General partner

d)

Limited partner

3.

Average. Which of the following statements is true?

a)

A written agreement is required to form a partnership.

b)

A capitalist-industrial partner can also be a limited partner.

c)

If there is no agreement, partners shall contribute capital equally.

d)

A limited partnership only has limited partners.

4.

Easy. The partnership that exists in ‘fact’ and in ‘law’

a)

De jure partnership

b)

Legal partnership

c)

Formal partnership

d)

De facto partnership

5.

Difficult. Which of the following is incorrect?

a)

Partnership creditors have preference over the partners with regards to partnership properties.

b)

Capitalist partners must contribute additional capital in case of imminent loss, unless stipulated otherwise.

c)

Failure to contribute property promised makes the partner a debtor of the partnership.

d)

Every partner is an agent of the partnership and can act outside his express or implied authority.

6.

Easy. As a general rule, what should be the basis of valuing non-cash considerations?

a)

Fair Market Value

b)

Face Value

c)

Partner’s Agreement

d)

Assessed Value

7.

Average. Vince, Kath and James decided to form a business together. They listed the essential terms of their business along with their rights and duties. What writing has been created?

a)

Articles of Incorporation

b)

Articles of Co-Partnership

c)

Division of Partnership Agreement

d)

Partnership By-laws

8.

Average. Partners commonly observe the following to ensure honesty and fairness in doing business except:

a)

Execution of Partnership Contract

b)

Incorporation of a Partnership

c)

Adjustment of Accounts Prior to Formation

d)

Valuation of Partners’ Investment

9.

Easy. Which would least likely be stated in the articles of co-partnership a.

a)

How much each partner will invest

b)

What the duties of each partner are

c)

Where the partnership will be located

d)

What products the company will sell

10.

Average. A group of CPAs decided to form a partnership to practice public accounting. This partnership is an example of a(n)

a)

General Purpose Partnership

b)

General Professional Partnership

c)

Partnership at Will

d)

Partnership with a fixed term or for particular undertaking