Quiz 2: Partnership

Legally, a partnership can operate for an indefinite period of time. However, in practice, it can easily be dissolved or terminated with the mere withdrawal, incapacity or death of a partner.

• Taxable Entity

• Mutual Agency

• Limited Life

The income of an ordinary partnership is taxable like a corporation at a rate 30%. Exempted from tax is a general professional partnership.

• Mutual Agency

• Taxable Entity

• Legal Entity

Is one whose liability extends up to his personal property.

• Capitalist Partner

• General Partner

• Ostensible Partner

Is one who contributes money or property.

• Capitalist Partner

• Industrial Partner

• Secret Partner

Is one who is an actual partner.

• Actual Partner

• Real Partner

• Nominal Partner

Is one whose participation is limited to a unit or part of a business.

• Nominal Partner

• Limited Partner

• Particular Partner

Is one who is liable only to the extent of his contribution in the partnership.

• Limited Partner

• General Partner

• Secret Partner

Composed of at least one general partner with the others a limited partner.

• Universal Partnership

• General Partnership

• Limited Partnership

Is one where the partners are liable up to the extent of their personal property.

• Limited Partnership

• Ostensible Partnership

• General Partnership

The partners are co-owners of the partnership property.

• True

• False