WorksheetsLaw - Ch-8 Partnership
Total questions: 16
Worksheet time: 17mins
Which of the following statements regarding partnerships is correct?
A partnership must exist for more than a single business transaction
The business must be profitable
A partner can be an individual living person or a registered company
NONE
In which form of partnership is there a partner that invests in the partnership but does not take part in the day-to-day running of the business?
Unlimited liability partnership
Limited partnership
Limited Liability Partnership
NONE
As a minimum, which of the following formalities is necessary to form an unlimited liability partnership?
A written partnership agreement
Registration of the partnership at Companies House
A decision by the partners to set up business together
NONE
A partner's actual authority to bind the partnership in a contract is determined by which of the following?
The perception third parties have of the purpose of the partnership
The actual purpose of the partnership
What is agreed between the partners
NONE
Which of the following statements concerning retiring partners is correct?
Retiring partners are not liable for any partnership debts after they leave
Retiring partners are responsible for existing partnerships debts when they leave and partnership debts incurred after their retirement, unless third parties are notified of their retirement
Retiring partners are liable only for existing partnership debts when they leave, unless third parties are notified that they have retired
NONE
Under the Partnership Act 1890, which of the following events will cause a partnership to be terminated?
Loss of 50% of the partnership's capital
Bankruptcy of a partner
The partnership incurring losses for three consecutive years
NONE
When a partnership is terminated, which of the following is paid off first from the funds raised from the sale of assets?
External debts
Partners' capital contributions
Loans from partners
NONE
Which of the following statements regarding Limited Liability Partnerships is correct?
A written partnership agreement is required to form the partnership
The partnership is exempt from audit
The partnership must have two designated members who are responsible for the publicity requirements of the partnership
The partnership dissolves when a partner leaves
Which of the following is true regarding Limited Liability Partnerships?
The partnership is liable for its own debts
Where the partnership cannot pay its own debts, the partners are jointly liable up to an amount they have guaranteed
One partner may not take part in the day-to-day running of the partnership
The partnership does not need to file accounts with the Registrar of Companies
When forming an unlimited liability partnership, a partnership agreement may be written. Which TWO statements regarding written partnership agreements are correct?
Written partnership agreements are required by law where there are more than 20 partners in the partnership
Written partnership agreements are not required on formation and may be created at any point in the life of the partnership
Written partnership agreements must be in the form of a deed
Terms in the agreement override terms implied by the Partnership Act 1890
Which of the following is true concerning partnerships and legal charges?
Partnerships can grant fixed charges only
Partnerships cannot grant fixed or floating charges
Partnerships can grant both fixed and floating charges
Partnerships can grant floating charges only
Which of the debt will a new partner in a partnership be liable for?
Existing partnership debts on the day they are admitted to the partnership
Liable
Not liable
Which of the debt will a new partner in a partnership be liable for?
All partnership debts incurred after their admission to membership
Liable
Not liable
Which of the following is necessary to terminate a Limited Liability Partnership?
Formal liquidation
A deed signed by the partners
An order from the Registrar of Companies
A court order
When an unlimited liability partnership is terminated, which of the following is paid off last out of funds realised from the partnership assets?
Notice by a partner
Disagreement between the partners
Absence of a partner
The end of an agreed fixed period of time for the partnership
When an unlimited liability partnership is terminated, which of the following is paid off last out of funds realised from the partnership assets?
Partners' share of partnership profits
External debts
Partnership loans
Partners' capital contribution
