Partnership

A partnership

• must be formed by deed

• must be formed by agreement in writing

• may be formed by verbal agreement

• none of the above

The rights and liabilities of partners among themselves

• may be freely agreed

• must be agreed with the partnership's creditors

• are governed by the Partnership Act 1890

• none of the above

The minimum number of general partners which a limited partnership must have is

• 1

• 2

• 3

• 7

When no deed of a partnership exists, each partner recieves profit

• in equal amounts

• at a rate of 4% of profits

• in proportion of their capital

• in proportion of their salaries

A partnership agreement will NOT normally outline

• each partner's capital contribution

• profits sharing ratios

• rate of interest on capital

• expected cost and revenues

The purpose of a partnership's appropriation account is to show

• how net profit is calculated

• fixed capital of partners

• how profits are shared among partners

• the financial position of the business