Partnership Concepts

Which of the following is not a characteristic of most partnership?

• Limited Liability

• Limited Life

• Mutual Agency

• Ease of formation

An advantage of the partnership as a form of business organization would be

• Partners do not pay income taxes on their share in partnership profit.

• A partnership is bound by the act of the partners.

• A partnership is created by mere agreement of the partners

• A partnership may be terminated by the death or withdrawal of a partner.

When property other than cash is invested in a partnership, at what amount should the non-cash property be credited to the contributing partner's capital account?

• Fair value at the date of contribution.

• Contributing partner's original cost.

• Assessed valuation for property tax purposes.

• Contributing partner's tax basis.

A partner whose liability for partnership debt is limited to his capital contribution to the partnership is called a

• general partner

• secret partner

• limited partner

• dormant partner

A partner who contributes money or property to the capital of the partnership is called

• industrial partner

• capitalist partner

• nominal partner

• ostensible partner

A partner who contributes his work or labor to the common fund of the partnership is called

• industrial partner

• capitalist partner

• managing partner

• nominal partner

One who takes charge of the winding up of partnership affairs upon dissolution is called

• ostensible partner

• silent partner

• liquidating partner

• limited partner

The written agreement of the partners embodied in a public instrument is called

• articles of co-partnership

• articles of incorporation

• by-laws

• none of the above

Which of the following would not be considered a characteristic of a partnership?

• co-ownership of property

• mutual agency

• unlimited liability

• unlimited life

A partner who has no voice or participation in the management of the affairs of the partnership is called

• dormant partner

• silent partner

• secret partner

• nominal partner