1.Which of the following is NOT a feature of a partnership?
- a) Mutual Agency
- b) Limited liability
- c) Profit sharing
- d) Joint ownership
Answer: b) Limited liability
2.In a partnership, the liability of partners is:
- a) Limited to the capital invested
- b) Unlimited for the firm’s debts
- c) Proportional to the profits
- d) Limited to the assets of the firm
Answer: b) Unlimited for the firm’s debts
3.In a partnership firm, a partner is entitled to:
- a) Salary
- b) Interest on capital
- c) Commission
- d) All of the above
Answer: d) All of the above
4.Which of the following statements is true about a partnership agreement?
- a) It is a written document
- b) It must be registered with the Registrar of Firms
- c) It may be oral or written
- d) It must be signed by all creditors
Answer: c) It may be oral or written
5.The profit-sharing ratio in a partnership is:
- a) Fixed and cannot be changed
- b) Determined by the partnership agreement
- c) Based on the amount of capital invested only
- d) Decided by the government
Answer: b) Determined by the partnership agreement
6.A partnership deed is:
- a) A legal document
- b) A document that outlines the terms and conditions of the partnership
- c) A voluntary agreement
- d) All of the above
Answer: d) All of the above
7.What happens when a new partner is admitted into a partnership firm?
- a) The existing partners automatically lose their rights
- b) The firm is dissolved
- c) The new partner brings in new capital and shares the profits and losses
- d) The new partner has no say in the business operations
Answer: c) The new partner brings in new capital and shares the profits and losses
8.Which of the following is a reason for the dissolution of a partnership?
- a) The death of a partner
- b) Mutual agreement between the partners
- c) The expiration of the partnership term
- d) All of the above
Answer: d) All of the above
9.The partnership is formed by a minimum of:
- a) One partner
- b) Two partners
- c) Three partners
- d) Four partners
Answer: b) Two partners
10.In case of a loss in a partnership firm, the partners are required to:
- a) Share the loss equally
- b) Share the loss according to the profit-sharing ratio
- c) Bear the entire loss personally
- d) Share the loss based on their capital contribution
Answer: b) Share the loss according to the profit-sharing ratio