ADVERTISEMENT
ADVERTISEMENT

Partnership MCQs

A partnership firm is a proper game plan by at least two gatherings to oversee and work a business and offer its benefits. There are a few sorts of association courses of action. Specifically, in association business, all accomplices share liabilities and benefits similarly, while in others, accomplices might have restricted risk.

Partnership MCQs: This section contains multiple-choice questions and answers on Partnership. It will help the students to prepare well for their exams.

List of Partnership MCQs

1. What is the minimum partner requirement to start a partnership firm?

  1. 10
  2. 5
  3. 2
  4. 20

Answer: C) 2

Explanation:

At least two people are needed for the enrollment of the partnership firm.

Discuss this Question


2. Agreement in which form is required in a partnership firm?

  1. Written
  2. Oral
  3. A or B
  4. None of the above.

Answer: C) A or B

Explanation:

A partnership deed is an understanding between the accomplices of a firm that traces the agreements of organization among the accomplices. An association firm is one of the well-known sorts of associations for beginning another business.

Discuss this Question


3. What is the liability of partners in a partnership firm?

  1. Limited
  2. Unlimited
  3. Limited to the capital of business
  4. No Liability

Answer: B) Unlimited

Explanation:

In a partnership firm, every one of the accomplices of the business has a limitless obligation. Every one of the obligations and liabilities is taken by any of the accomplices should be reimbursed by every one of the accomplices. It is everybody's liability in an overall organization with limitless risk.

Discuss this Question


4. When is the Debit to partner's capital a/c entry passed in accounts?

  1. Drawings are made
  2. Investment is done
  3. Interest on Drawings is charged
  4. Capital is withdrawn

Answer: C) Interest on Drawings is charged

Explanation:

At the point when the Interest on drawings is charged to accomplices, Interest on Drawing Account is credited, and the Partner's Capital Account is charged. It is called a changing section. Changing sections are normally done toward the year's end for wages and costs.

Discuss this Question


5. Partnership Firm Agreement is known as?

  1. Partnership Contract
  2. Partnership Deed
  3. Partnership Act
  4. Agreement

Answer: B) Partnership Deed

Explanation:

A partnership deed is an understanding between the accomplices of a firm that traces the agreements of association among the accomplices. It indicates the different terms like benefit/misfortune sharing, pay, interest on capital, drawings, affirmation of another accomplice.

Discuss this Question


6. 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

Answer: D) Equal

Explanation:

As per the arrangements of the partnership deed, the benefits and misfortunes made by the firm are circulated among the accomplices. Notwithstanding, sharing of benefits and misfortunes is equivalent among the accomplices, assuming the partnership deed is quiet.

Discuss this Question


7. Which among the following is not a characteristic of a partnership firm?

  1. Easy Formation
  2. Equal Profits
  3. Limited Liability
  4. Mutual Consent

Answer: C) Limited Liability

Explanation:

Limited liability is not a characteristic of a partnership firm as the partners involved have unlimited liability.

Discuss this Question


8. 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.

Answer: A) Form of business partnership where there is no fixed term agreed for the duration of the partnership

Explanation:

A Partnership at Will is a type of business association where there is no decent term concurred for the span of the organization. At the end of the day, it is open-finished. This contrasts from a standard business organization via arrangement as this sort reaches a conclusion whenever when an accomplice serves a notification to disintegrate the association on the other accomplice or accomplices giving the organization understanding gives to this.

Discuss this Question


9. What is a limited liability partnership?

  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 was formed for a single transaction.

Answer: B) Partnership in which some or all partners can exhibit elements of partnerships and corporations

Explanation:

Limited Liability Partnership is an adaptable legitimate and assessment element that permits accomplices to profit from economies of scale by cooperating while likewise decreasing their responsibility for the activities of different accomplices. Similarly, as with any lawful substance, you really must take a look at the laws in your country (and your state) before becoming excessively energized. So, check with a legal advisor first. The odds are great that they have first-hand involvement in a Limited Liability Partnership.

Discuss this Question


10. What is a General Partnership?

  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 was formed for a single transaction.

Answer: C) Form of partnership under common law

Explanation:

A general partnership is a business course of action by which at least two people consent to partake in all resources, benefits, and monetary and legitimate liabilities of a mutually possessed business. In an overall association, accomplices consent to limitless obligation, which means liabilities are not covered and can be paid through the capture of a proprietor's resources. Besides, any accomplice might be sued for the business' obligations.

Discuss this Question


11. What is Particular Partnership?

  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 was formed for a single transaction.

Answer: D) A partnership was formed for a single transaction

Explanation:

A partnership can be shaped for carrying on persistent business, or it tends to be framed for one specific endeavour or undertaking. If the association is framed uniquely to do one undertaking or to finish one endeavour such an organization is known as a specific association.

Discuss this Question


12. In which sort of partnership does one accomplice has limitless risk and another accomplice have a restricted obligation?

  1. Partnership At will
  2. Particular Partnership
  3. General Partnership
  4. Limited Liability Partnership

Answer: D) Limited Liability Partnership

Explanation:

In a Limited Liability Partnership firm, somewhere around one accomplice has limitless risk—the general partner(s). Different accomplices (restricted accomplices) have restricted risk, which means their own resources normally can't be utilized to fulfil business obligations and liabilities. How much their obligation is restricted to their interest in the LP.

Discuss this Question


13. The agreement for the duration of partnership is absent in what kind of partnership?

  1. Partnership At will
  2. Particular Partnership
  3. General Partnership
  4. Limited Liability Partnership

Answer: A) Partnership At will

Explanation:

Partnership at will is an association that is framed to carry on business without determining any timeframe and the organization proceeds as long as the accomplices will proceed. It isn't chosen concerning when and how the firm will reach a conclusion.

Discuss this Question


14. Which among the following are the features of a partnership firm?

  1. Two or more persons are carrying common business under an agreement.
  2. They are sharing profits and losses in the fixed ratio.
  3. Business is carried by all or any of them acting tor all as an agent.
  4. All of the above.

Answer: D) All of the above.

Explanation:

The Indian Partnership Act, 1932 administers association types of business in India. Area 4 of this Act characterizes an association as the connection between accomplices who have consented to share the association's benefits carried on by all or any of them representing all.

Discuss this Question


15. What is an Active Partner?

  1. An invested person who is involved in the daily operations of the partnership.
  2. A person who provides some of the capital for a business but who does not take an active part in managing the business.
  3. A person who holds himself out as a partner or permits a partner to hold him out.
  4. A person who gives an impression to others that he/she is a partner of the firm.

Answer: A) An invested person who is involved in the daily operations of the partnership

Explanation:

An active partner is a put individual who is associated with the day-by-day activities of the organization. A functioning accomplice helps maintain the business to upgrade their profits and is along these lines thought about a material member. This individual commonly shares more danger and return versus a restricted or quiet accomplice.

Discuss this Question


16. What is a Sleeping Partner?

  1. An invested person who is involved in the daily operations of the partnership.
  2. A person who provides some of the capital for a business but who does not take an active part in managing the business.
  3. A person who holds himself out as a partner or permits a partner to hold him out.
  4. A person who gives an impression to others that he/she is a partner of the firm.

Answer: B) A person who provides some of the capital for a business but who does not take an active part in managing the business.

Explanation:

Silent Partners are essentially financial backers in the business. Their situation as a quiet accomplice agrees on them the option to survey the organization's financial reports and to have a voice in choices that influence changes to the nature or presence of the association.

Discuss this Question


17. What is a Nominal Partner?

  1. An invested person who is involved in the daily operations of the partnership.
  2. A person who provides some of the capital for a business but who does not take an active part in managing the business.
  3. A person who holds himself out as a partner or permits a partner to hold him out.
  4. A person who gives an impression to others that he/she is a partner of the firm.

Answer: C) A person who holds himself out as a partner or permits a partner to hold him out

Explanation:

This is a partner that doesn't have any genuine or huge interest in the organization. In this way, he is just loaning his name to the organization. He won't make any capital commitments to the firm, thus he won't have an offer in the benefits by the same token. In any case, the ostensible accomplice will be at risk to untouchables and outsiders for acts done by some other accomplices.

Discuss this Question


18. What is partner by estoppel?

  1. An invested person who is involved in the daily operations of the partnership.
  2. A person who provides some of the capital for a business but who does not take an active part in managing the business.
  3. A person who holds himself out as a partner or permits a partner to hold him out.
  4. A person who gives an impression to others that he/she is a partner of the firm.

Answer: D) A person who gives an impression to others that he/she is a partner of the firm

Explanation:

Assuming an individual holds out to another that he is an accomplice of the firm, either by his words, activities or direct then such an accomplice can't reject that he isn't an accomplice. This fundamentally implies that despite the fact that such an individual isn't an accomplice he has addressed himself accordingly, thus he becomes accomplice by estoppel or accomplice by waiting.

Discuss this Question


19. What is a partner in profits only?

  1. An invested person who is involved in the daily operations of the partnership.
  2. A person who provides some of the capital for a business but who does not take an active part in managing the business.
  3. A partner who gets into an agreement to share only the profits of the partnership firm and not the losses.
  4. A Partner who is under the age of 18.

Answer: C) A partner who gets into an agreement to share only the profits of the partnership firm and not the losses

Explanation:

This partner will just share the benefits of the firm, he won't be obligated for any liabilities. In any event, when managing outsiders, he will be responsible for all demonstrations of benefit just, he will share none of the liabilities.

Discuss this Question


20. What is a minor partner?

  1. An invested person who is involved in the daily operations of the partnership.
  2. A person who provides some of the capital for a business but who does not take an active part in managing the business.
  3. A partner who gets into an agreement to share only the profits of the partnership firm and not the losses.
  4. A Partner who is under the age of 18.

Answer: D) A Partner who is under the age of 18

Explanation:

A minor can't be an accomplice of a firm as per the Contract Act. Be that as it may, an accomplice can be conceded to the advantages of an organization assuming all accomplice gives their assent for something similar. He will share the benefits of the firm however his responsibility for the misfortunes will be restricted to his portion in the firm.

Discuss this Question


More Commerce MCQs
Basic Accounting MCQs Business Studies MCQs
Capital Market MCQs Goods & Services Tax (GST) MCQs
Cooperative Society MCQs Sole Proprietorship MCQs
Depreciation MCQs All Commerce MCQs

ADVERTISEMENT


ADVERTISEMENT


Comments and Discussions!



ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Languages: » C » C++ » C++ STL » Java » Data Structure » C#.Net » Android » Kotlin » SQL
Web Technologies: » PHP » Python » JavaScript » CSS » Ajax » Node.js » Web programming/HTML
Solved programs: » C » C++ » DS » Java » C#
Aptitude que. & ans.: » C » C++ » Java » DBMS
Interview que. & ans.: » C » Embedded C » Java » SEO » HR
CS Subjects: » CS Basics » O.S. » Networks » DBMS » Embedded Systems » Cloud Computing
» Machine learning » CS Organizations » Linux » DOS
More: » Articles » Puzzles » News/Updates

© https://www.includehelp.com some rights reserved.