Quiz 12/2/2023

The individual assets invested by a partner in a partnership

• revert back to that partner if the partnership liquidates.

• determine that partner's share of net income or loss for the year.

• are jointly owned by all partners.

• determine the scope of authority of that partner.

Which one of the following would not be considered a disadvantage of the partnership form of organization?

• Limited life

• Unlimited liability

• Mutual agency

• Ease of formation

The partnership form of business is

• restricted to law and medical practices.

• restricted to firms having fewer than 10 partners

• not restricted to any particular type of business.

• most often used in relatively large companies.

Which of the following is not a principal characteristic of the partnership form of business organization?

• Mutual agency

• Association of individuals

• Limited liability

• Limited life

The partnership agreement should include each of the following except the

• date of the partnership inception. .

• principal location of the firm

• surviving family members in the event of a partner's death.

• Each of these should be included.

Which of the following statements is true regarding the form of a legally binding partnership contract?

• The partnership contract must be in writing.

• The partnership contract may be based on a handshake.

• The partnership contract may be implied.

• The partnership contract cannot be oral.

Which of the following statements about a partnership is correct?

• The personal assets of a partner are included in the partnership accounting records.

• A partnership is not required to file an information tax return.

• Each partner's share of income is taxable to the partnership.

• A partnership represents an accounting entity for financial reporting purposes.

In a partnership, mutual agency means

• each partner acts on his own behalf when engaging in partnership business.

• the act of any partner is binding on all other partners, only if partners act within their cope of authority.

• an act by a partner is judged as binding on other partners depending on whether the act appears to be appropriate for the partnership.

• that partners must pay taxes on a mutual or combined basis.

A partnership

• is dissolved only by the withdrawal of a partner.

• is dissolved upon the acceptance of a new partner.

• dissolution means the business must liquidate.

• has unlimited life.

The partner in a limited partnership that has unlimited liability is referred to as the

• lead partner.

• head partner.

• general partner.

• unlimited partner.