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WorksheetsPartnership Basic Consideration and Formation
Total questions: 15
Worksheet time: 5mins
A partnership
is created by agreement of the partner
has a juridical personality separate and distinct from that of each of the partners
is dissolved by death of a partner
all of the above
Which of the following is a characteristic of most partnerships?
limited liability
division of profits only
unlimited life
mutual contribution
Which of the following is not a characteristic of most partnerships?
limited life
limited liability
mutual agency
ease of formation
Which of these characteristics does not apply to a general professional partnership?
unlimited liability
unlimited life
mutual agency
no business income tax
All of the following are true for both general and limited partnerships except
both must have at least one general partner
all partners are liable for all debts of the firm
all partners have the right to participate in the profits of the business
both are easily dissolved
A partner whose liability for partnership debts is limited to his capital contribution is called
limited partner
general partner
industrial partner
secret partner
Another way of stating the accounting equation is
Assets-Liabilities= Owner’s Equity
Owner’s Equity + Assets= Liabilities
Owner’s Equity + Assets= Liabilities
Assest+ Liabilities = Owner’s Equity
A partner invested into a partnership a building with a P250,000 carrying value and P400,000 fair market value. the related mortgage payable of P125,000 was assumed by the partnership. As a result of the investment, the partner's capital account will be credited for
P275,000
P125,000
P400,000
P250,000
The ability of a partner to enter into a contract on behalf of all partners is called
voluntary association
mutual agency
the partnership agreement
unlimited liabiity
A disadvantage of a partnerships over corporations is the partners' unlimited liability
True
False
One who takes charge of the winding up of partnership affairs upon dissolution:
silent partner
liquidating partner
ostensible partner
dormant partner
A partner whose liability for partnership debts is limited to his capital contribution is called
(a)
A partner who contributes his work, labor or industry to the common fund of the partnership is called
capitalist partner
managing partner
industrial partner
limited partner
Bankruptcy of a partner will dissolve the partnership.
True
False
A limited partnership normally has one or more general partners whose liability is limited
False
True
