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1)

What is the minimum number of partners required to commence a partnership business?

A)  20WRONG ANSWER

B)  10WRONG ANSWER

C)  2RIGHT ANSWER!!!

D)  4WRONG ANSWER


2)

Partnership type of business is formed by the mutual agreement of partners. What kind of agreement is it?

A)  Oral agreement WRONG ANSWER

B)  Written agreementWRONG ANSWER

C)  Oral or written agreementRIGHT ANSWER!!!

D)  None of themWRONG ANSWER


3)

In the general form of partnership, liabilities of partners are:

A)  limitedWRONG ANSWER

B)  unlimited RIGHT ANSWER!!!

C)  limited to the business capitalWRONG ANSWER


4)

Is partnership type of business considered as a separate legal entity?

A)  NoRIGHT ANSWER!!!

B)  YesWRONG ANSWER


5)

Can a partner transfer his/her share of business to a third party without other partners consent?

A)  No RIGHT ANSWER!!!

B)  YesWRONG ANSWER


6)

Is it compulsory for all partners to contribute equal amount of capital in the business?

A)  No RIGHT ANSWER!!!

B)  YesWRONG ANSWER


7)

Interest on drawings is:

A)  Debited to partner’s current a/c RIGHT ANSWER!!!

B)  Credited to partner’s current a/c WRONG ANSWER

C)  Not shown in current accountWRONG ANSWER


8)

The written agreement of partnership is most commonly referred to as:

A)  Agreement WRONG ANSWER

B)  Partnership deed RIGHT ANSWER!!!

C)  Partnership contractWRONG ANSWER

D)  Partnership ActWRONG ANSWER


9)

Where there is no partnership agreement exists between partners, what will be the profit sharing ratio between the partners?

A)  Equal RIGHT ANSWER!!!

B)  UnequalWRONG ANSWER

C)  It will depend on a partner’s capital WRONG ANSWER

D)  It will depend on the experience of a partner WRONG ANSWER


10)

Salary of a partner is _________ to current account

A)  DebitedWRONG ANSWER

B)  CreditedRIGHT ANSWER!!!






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