Partnership Quiz-1

Partnership Quiz-1

Quiz

 

1. What is Partnership at Will?
   1.   Form of business partnership where there is no fixed term agreed for the duration of the partnership.
   2.   Partnership in which some or all partners can exhibit elements of partnerships and corporations.
   3.   Form of partnership under common law.
   4.   A partnership formed for a single transaction.
2. Which type of partnership has no specific duration and can be terminated by any partner at any time?
   1.   Partnership at will
   2.   Limited liability partnership
   3.   Particular partnership
   4.   General partnership
3. What happens if a minor partner decides not to become a full partner after attaining majority?
   1.   He or she must give public notice of his or her decision
   2.   He or she must be bought out by the existing partners
   3.   He or she remains a minor partner with the same rights and liabilities as before
   4.   None of the above
4. What is the liability of a minor partner for the debts of the firm?
   1.   Unlimited
   2.   Limited to the amount of his or her investment in the firm
   3.   Limited to his or her share in the profits of the firm
   4.   None of the above
5. Which type of partnership is not considered a separate legal entity?
   1.   General partnership
   2.   Limited liability partnership
   3.   Partnership at will
   4.   Particular partnership
6. What are the rights of a minor partner?
   1.   The right to share in the profits of the firm
   2.   The right to participate in the management of the firm
   3.   The right to inspect the books of the firm
   4.   All of the above
7. Which of the following is not a type of partnership?
   1.   General partnership
   2.   Limited partnership
   3.   Limited liability partnership
   4.   Dormant partnership
8. Which among the following is not a characteristic of a partnership firm?
   1.   Easy Formation
   2.   Equal Profits
   3.   Limited Liability
   4.   Mutual Consent
9. Which of the following is not a characteristic of a partnership?
   1.   Joint ownership and control
   2.   Unlimited liability
   3.   Separate legal entity
   4.   Mutual agency
10. What is partner by estoppel?
    1.   An invested person who is involved in the daily operations of the partnership.
    2.   A person who holds himself out as a partner or permits a partner to hold him out.
    3.   A person who gives an impression to others that he/she is a partner of the firm.
    4.   A person who provides some of the capital for a business but who does not take an active part in managing the business.
11. How will the profits be divided among partners in the absence of a partnership deed?
    1.   Depending on the capital invested.
    2.   Depending on the work experience.
    3.   Unequal
    4.   Equal
12. maximum number of partners in a firm proposed by companies Act 2013 was
    1.   100
    2.   50
    3.   20
    4.   10
13. What is a Sleeping Partner?
    1.   An invested person who is involved in the daily operations of the partnership.
    2.   A person who holds himself out as a partner or permits a partner to hold him out.
    3.   A person who gives an impression to others that he/she is a partner of the firm.
    4.   A person who provides some of the capital for a business but who does not take an active part in managing the business.
14. Which type of partnership requires at least one general partner and one limited partner?
    1.   General partnership
    2.   Limited partnership
    3.   Limited liability partnership
    4.   Joint partnership
15. What is the liability of partners in a partnership firm?
    1.   Limited
    2.   Unlimited
    3.   Limited to the capital of business
    4.   No Liability
16. In a partnership, the sharing of profits and losses is based on:
    1.   Capital contributions
    2.   Ownership percentages
    3.   Effort and time invested
    4.   Total revenue generated
17. A nominal partner is:
    1.   A partner who contributes capital to the business.
    2.   A partner who is not liable for the debts of the business.
    3.   A partner who does not participate in the management of the business.
    4.   A partner who allows his or her name to be used in the business, but does not have any actual interest in it.
18. Partnership Firm Agreement is known as?
    1.   Partnership Contract
    2.   Partnership Deed
    3.   Partnership Act
    4.   Agreement
19. A person who is a partner by holding out can be relieved of liability to third parties if he can prove that:
    1.   he did not know that he was being represented as a partner.
    2.   he took reasonable steps to stop himself from being represented as a partner.
    3.   both (a) and (b).
    4.   neither (a) nor (b).
20. What type of agreement is used to form a partnership business?
    1.   Written agreement
    2.   Oral agreement
    3.   Written or oral agreement
    4.   None of them