Q. In the context of partnerships, what does the term 'joint venture' imply?
A.
A permanent partnership between two firms
B.
A temporary partnership for a specific project
C.
A partnership that involves sharing of profits only
D.
A partnership that requires equal investment from all partners
Show solution
Solution
A joint venture is typically a temporary partnership formed for a specific project or purpose.
Correct Answer:
B
— A temporary partnership for a specific project
Learn More →
Q. What is a key characteristic of a limited partnership?
A.
All partners have unlimited liability
B.
At least one partner has limited liability
C.
All partners are involved in management
D.
It requires a formal written agreement
Show solution
Solution
In a limited partnership, at least one partner has limited liability, while others may have unlimited liability.
Correct Answer:
B
— At least one partner has limited liability
Learn More →
Q. What is a key characteristic of a partnership?
A.
It is a separate legal entity.
B.
It requires a formal registration process.
C.
It involves shared decision-making.
D.
It limits the number of partners to three.
Show solution
Solution
A key characteristic of a partnership is that it involves shared decision-making among the partners.
Correct Answer:
C
— It involves shared decision-making.
Learn More →
Q. What is a key disadvantage of a general partnership?
A.
Limited access to capital
B.
Unlimited liability for partners
C.
Difficulty in decision-making
D.
Lack of business continuity
Show solution
Solution
In a general partnership, all partners have unlimited liability, meaning they are personally responsible for the debts of the business.
Correct Answer:
B
— Unlimited liability for partners
Learn More →
Q. What is the primary advantage of a general partnership?
A.
Limited liability for all partners
B.
Ease of formation and management
C.
Ability to raise capital through public offerings
D.
Tax benefits for partners
Show solution
Solution
The primary advantage of a general partnership is its ease of formation and management, as it requires minimal formalities.
Correct Answer:
B
— Ease of formation and management
Learn More →
Q. What is the primary advantage of a limited partnership?
A.
Unlimited liability for all partners
B.
Limited liability for some partners
C.
Equal management rights for all partners
D.
No need for a formal agreement
Show solution
Solution
A limited partnership allows some partners to have limited liability, protecting their personal assets.
Correct Answer:
B
— Limited liability for some partners
Learn More →
Q. What is the primary advantage of a partnership over a sole proprietorship?
A.
Limited liability for all partners
B.
Greater access to capital and resources
C.
Simplicity in decision-making
D.
Less regulatory scrutiny
Show solution
Solution
Partnerships generally have greater access to capital and resources due to the combined contributions of multiple partners.
Correct Answer:
B
— Greater access to capital and resources
Learn More →
Q. What is the primary advantage of forming a partnership over a sole proprietorship?
A.
Limited liability for all partners
B.
Increased capital and resources
C.
Simplicity in decision-making
D.
Complete control over business decisions
Show solution
Solution
Partnerships allow for increased capital and resources through contributions from multiple partners.
Correct Answer:
B
— Increased capital and resources
Learn More →
Q. What is the primary advantage of forming a partnership?
A.
Limited liability for all partners
B.
Ease of raising capital
C.
Complete control for one partner
D.
No need for formal agreements
Show solution
Solution
One of the primary advantages of partnerships is the ease of raising capital through the combined resources of the partners.
Correct Answer:
B
— Ease of raising capital
Learn More →
Q. What is the primary disadvantage of a general partnership?
A.
Limited access to capital
B.
Unlimited personal liability for partners
C.
Difficulty in decision-making
D.
Lack of business continuity
Show solution
Solution
The primary disadvantage of a general partnership is that partners have unlimited personal liability for business debts.
Correct Answer:
B
— Unlimited personal liability for partners
Learn More →
Q. What is the primary disadvantage of a partnership?
A.
Limited access to capital
B.
Shared decision-making
C.
Unlimited liability
D.
Lack of formal structure
Show solution
Solution
The primary disadvantage of a partnership is that partners have unlimited liability for business debts.
Correct Answer:
C
— Unlimited liability
Learn More →
Q. What is the primary legal document that outlines the terms of a partnership?
A.
Partnership deed
B.
Business plan
C.
Operating agreement
D.
Shareholder agreement
Show solution
Solution
The primary legal document that outlines the terms of a partnership is called a partnership deed.
Correct Answer:
A
— Partnership deed
Learn More →
Q. What is the primary purpose of a partnership agreement?
A.
To outline the tax obligations of the partners
B.
To define the terms of the partnership and protect the interests of partners
C.
To establish a marketing strategy
D.
To determine the location of the business
Show solution
Solution
The primary purpose of a partnership agreement is to define the terms of the partnership and protect the interests of all partners involved.
Correct Answer:
B
— To define the terms of the partnership and protect the interests of partners
Learn More →
Q. What is the role of a 'general partner' in a partnership?
A.
To provide capital only
B.
To manage the business and assume liability
C.
To act as a silent partner
D.
To represent the partnership in legal matters
Show solution
Solution
A general partner is actively involved in managing the business and assumes full liability for the partnership's debts.
Correct Answer:
B
— To manage the business and assume liability
Learn More →
Q. What is the role of a 'managing partner' in a partnership? (2021)
A.
To oversee daily operations and make decisions
B.
To provide capital without involvement in management
C.
To represent the partnership in legal matters
D.
To handle financial accounts only
Show solution
Solution
The managing partner is responsible for overseeing the daily operations and making key decisions for the partnership.
Correct Answer:
A
— To oversee daily operations and make decisions
Learn More →
Q. What is the role of a 'silent partner' in a partnership?
A.
To manage the business actively
B.
To provide capital without participating in management
C.
To take on all liabilities
D.
To make all strategic decisions
Show solution
Solution
A silent partner provides capital to the partnership but does not take part in the day-to-day management of the business.
Correct Answer:
B
— To provide capital without participating in management
Learn More →
Q. What is the term for a partner who has limited liability and does not participate in day-to-day operations?
A.
General partner
B.
Silent partner
C.
Active partner
D.
Equity partner
Show solution
Solution
A silent partner is one who has limited liability and does not engage in daily operations.
Correct Answer:
B
— Silent partner
Learn More →
Q. What is the term for a partner who has unlimited liability in a partnership?
A.
General partner
B.
Limited partner
C.
Silent partner
D.
Equity partner
Show solution
Solution
A general partner has unlimited liability, meaning they are personally responsible for the debts of the partnership.
Correct Answer:
A
— General partner
Learn More →
Q. Which of the following best describes a 'partnership agreement'?
A.
A legal document that outlines the terms of the partnership
B.
An informal understanding between partners
C.
A document that only specifies profit-sharing ratios
D.
A contract that can be changed at any time without notice
Show solution
Solution
A partnership agreement is a legal document that outlines the terms and conditions of the partnership.
Correct Answer:
A
— A legal document that outlines the terms of the partnership
Learn More →
Q. Which of the following best describes a limited partnership?
A.
All partners have unlimited liability.
B.
Only one partner has unlimited liability.
C.
All partners are involved in management.
D.
Partners share profits equally.
Show solution
Solution
In a limited partnership, only one partner has unlimited liability while others have limited liability.
Correct Answer:
B
— Only one partner has unlimited liability.
Learn More →
Q. Which of the following best describes the concept of 'joint venture' in the context of partnerships?
A.
A permanent partnership for all business activities
B.
A temporary partnership for a specific project
C.
A partnership with limited liability
D.
A partnership that requires equal capital contribution
Show solution
Solution
A joint venture is a temporary partnership formed for a specific project or purpose.
Correct Answer:
B
— A temporary partnership for a specific project
Learn More →
Q. Which of the following best describes the term 'joint venture' in the context of partnerships?
A.
A permanent partnership between two businesses
B.
A temporary partnership for a specific project or goal
C.
A partnership that involves multiple partners with equal shares
D.
A partnership that is formed without a formal agreement
Show solution
Solution
A joint venture is a temporary partnership formed for a specific project or goal, distinct from a permanent partnership.
Correct Answer:
B
— A temporary partnership for a specific project or goal
Learn More →
Q. Which of the following best describes the term 'limited partner' in a partnership?
A.
A partner who has unlimited liability
B.
A partner who contributes capital but has limited involvement in management
C.
A partner who manages the business and has full control
D.
A partner who is only involved in decision-making
Show solution
Solution
A limited partner contributes capital but does not participate in the management of the business, thus limiting their liability.
Correct Answer:
B
— A partner who contributes capital but has limited involvement in management
Learn More →
Q. Which of the following best describes the term 'limited partner'?
A.
A partner who has unlimited liability
B.
A partner who contributes capital but has limited involvement in management
C.
A partner who manages the business
D.
A partner who is not liable for any debts
Show solution
Solution
A limited partner contributes capital but does not participate in the management of the business.
Correct Answer:
B
— A partner who contributes capital but has limited involvement in management
Learn More →
Q. Which of the following best describes the term 'limited partnership'?
A.
A partnership where all partners have unlimited liability
B.
A partnership with at least one general partner and one limited partner
C.
A partnership that is formed for a specific project only
D.
A partnership that does not require a formal agreement
Show solution
Solution
A limited partnership consists of at least one general partner who has unlimited liability and one or more limited partners who have limited liability.
Correct Answer:
B
— A partnership with at least one general partner and one limited partner
Learn More →
Q. Which of the following best describes the term 'partnership by estoppel'?
A.
A partnership formed without a formal agreement
B.
A partnership that is legally recognized despite not meeting all legal requirements
C.
A partnership that is dissolved due to one partner's actions
D.
A partnership that is formed only for tax benefits
Show solution
Solution
Partnership by estoppel occurs when a person represents themselves as a partner, leading others to believe they are part of the partnership, thus creating legal recognition.
Correct Answer:
B
— A partnership that is legally recognized despite not meeting all legal requirements
Learn More →
Q. Which of the following best describes the term 'partnership deed'?
A.
A legal document that outlines the terms of the partnership
B.
A verbal agreement between partners
C.
A document that registers the partnership with the government
D.
A financial statement of the partnership
Show solution
Solution
A partnership deed is a legal document that outlines the terms and conditions of the partnership, including roles, responsibilities, and profit-sharing.
Correct Answer:
A
— A legal document that outlines the terms of the partnership
Learn More →
Q. Which of the following best describes the term 'profit-sharing ratio' in a partnership?
A.
The ratio in which partners share losses
B.
The ratio in which partners contribute capital
C.
The ratio in which partners share profits
D.
The ratio of time spent by partners in the business
Show solution
Solution
The profit-sharing ratio refers to the ratio in which partners agree to share the profits of the partnership.
Correct Answer:
C
— The ratio in which partners share profits
Learn More →
Q. Which of the following best describes the term 'silent partner' in a business partnership?
A.
A partner who is actively involved in management
B.
A partner who invests capital but does not participate in day-to-day operations
C.
A partner who has no financial stake in the business
D.
A partner who only provides advice
Show solution
Solution
A silent partner invests capital but does not engage in the daily operations of the business.
Correct Answer:
B
— A partner who invests capital but does not participate in day-to-day operations
Learn More →
Q. Which of the following best describes the term 'silent partner'?
A.
A partner who actively manages the business
B.
A partner who invests but does not participate in management
C.
A partner who has no financial stake
D.
A partner who is only involved in legal matters
Show solution
Solution
A silent partner is one who invests in the business but does not take part in its management.
Correct Answer:
B
— A partner who invests but does not participate in management
Learn More →
Showing 31 to 60 of 72 (3 Pages)
