In a partnership, the firm name clause must legally include the names of all partners involved, and failure to do so can result in the partnership being deemed invalid.
PARTNERSHIP PART 2

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Business
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University
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Hard
Norzelawati Umar
Used 1+ times
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
TRUE
FALSE
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If a partnership agreement includes a duration clause, the partnership automatically dissolves once the specified period ends, even if the partners wish to continue the business.
TRUE
FALSE
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The provision of capital clause in a partnership agreement dictates that each partner must contribute an equal amount of capital to the business, regardless of their role or ownership interest.
TRUE
FALSE
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The partnership property clause ensures that any property purchased by the partnership is owned jointly by all partners, even if only one partner made the purchase.
TRUE
FALSE
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A partnership agreement that includes an expulsion of members clause allows the majority of partners to expel a partner without cause, provided that the partnership agreement permits it.
TRUE
FALSE
6.
MULTIPLE CHOICE QUESTION
45 sec • 2 pts
Jane is the managing director of a company. The company's constitution explicitly states that she has the authority to enter into contracts on behalf of the company up to RM100,000 without needing approval from the board. Jane enters into a contract worth RM120,000 without board approval. Is the company bound by the contract?
Yes, because Jane is the managing director.
No, because Jane exceeded her actual authority.
Yes, because the third party believed Jane had authority.
No, because the contract amount was not specified in the company’s constitution.
7.
MULTIPLE CHOICE QUESTION
45 sec • 2 pts
Alex is an employee of XYZ Ltd. He does not have actual authority to sign contracts, but he often does so with the knowledge of the company's directors, who never object. One day, Alex signs a contract with a supplier for the purchase of office equipment. The supplier later discovers Alex lacked actual authority and seeks to enforce the contract. Is XYZ Ltd. bound by the contract?
Yes, because Alex had apparent authority.
No, because Alex lacked actual authority.
Yes, because the supplier relied on the contract in good faith.
No, because the directors never explicitly granted Alex authority.
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