Accountancy- Accounting for Partnership Firms - Fundamentals Set 4

Maximum Two ✘ Maximum Ten ✘ Maximum One Hundred ✘ Maximum Fifty ✔

Limited ✘ Unlimited ✘ Determined by Court ✘ Determined by Partnership Act ✔

An Owner ✘ An Agent ✘ An Owner and an Agent ✘ Manager ✔

2 ✘ 7 ✘ 10 ✘ 20 ✔

do not contribute any capital but get some share of profit for lending their name to the business ✘ contribute very less capital but get equal profit ✘ do not contribute any capital and without having any interest in the business, lend their name to the business ✘ contribute maximum capital of the business ✔

take active part in the conduct of the business but provide no capital. However, salary is paid to them. ✘ do not take any part in the conduct of the business but provide capital and share profits and losses in the agreed ratio ✘ take active part in the conduct of the business but provide no capital. However, share profits and losses in the agreed ratio. ✘ do not take any part in the conduct of the business and contribute no capital. However, share profits and losses in the agreed ratio. ✔

a minor cannot be admitted as a partner ✘ a minor can be admitted as a partner, only into the benefits of the partnership ✘ a minor can be admitted as a partner but his rights and liabilities are same of adult partner ✘ none of the above ✔

Binding on all partners ✘ Binding on that partner only ✘ Binding on all partners except that particular partner ✘ None of the above ✔

At least two persons ✘ There is an agreement between all partners ✘ Equal share of profits and losses ✘ Partnership agreement is for some business. ✔

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