A partnership deed is an agreement between two or more individuals who sign a contract to start a profitable business together. They agree to be the co-owners, distribute responsibilities, income or losses for running a business. In the Partnership deed, the partners are equally responsible for the debt of an organisation. The documentation of all these features of partnerships agreement is known as partnership deeds.
Given below are important MCQs on Partnership Deed to analyse your understanding of the topic. The answers are also given for your reference.
Partnership Deed MCQs
Question 1
A partnership deed contains the details associated with
(a)Nature of business and duration of firm.
(b)Capital contribution, profit/loss sharing ratio and other agreed terms.
(c)Name of firm and partners.
(d)All of these.
Answer: D
Question 2
A partnership business is determined by the mutual agreement of a partner. This kind of agreement can be?
A) Oral agreement
B) Written agreement
C) Oral or written agreement
D) None of them
Answer: C
Question 3
The common term for partnership written agreement is known as
A) Agreement
B) Partnership deed
C) Partnership contract
D) Partnership Act
Answer: B
Question 4
Where no agreement exists between the partners, what will be the benefit-sharing ratio between them?
A) Unequal
B) Equal
C) It will depend on the experience of a partner
D) It will depend on a partner’s capital
Answer: B
Question 5
Which of the following option is not a feature of a partnership business?
A) Mutual agency
B) Limited liability
C) Limited life
D) Ease of formation
Answer: B
Question 6
In which types of partnership, there is no partnership duration mentioned?
A) Partnership-at-will
B) General partnership
C) Registered partnership
D) Limited partnership
Answer: A
Question 7
A common structure of the partnership, partners liabilities are:
A) Unlimited
B) Limited
C) Limited to the business capital
Answer: A
Question 8
Is a partnership business regarded as a separate legal entity?
A) Yes
B) No
Answer: B
Question 9
In partnership Interest on drawings is:
A) Credited to partner’s current a/c
B) Not shown in the current account
C) Debited to partner’s current a/c
D) None of the above
Answer: C
Question 10
Salary of a partner is _________.
A) Credited to a current account
B) Debited to a current account
C) Paid in Cash
D) All the above
Answer: A
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