QUESTION 1
Which of the following is least likely to be X's agent?
X's stockbroker.
X's employer.
X's real estate agent.
X's partner.
QUESTION 2
A person who obtains credit for a partnership may make themselves liable to the supplier by 'holding out'.
True
False
QUESTION 3
Which of the following is a potential remedy for breach of a fiduciary duty by a partner?
Expel the partner (if a power of expulsion is included in the partnership agreement).
Injunction.
Account of profits.
Dissolution by the Court.
All of the above.
QUESTION 4
In the absence of agreement to the contrary, a person joining a partnership is liable for:
None of the debts of the partnership.
Only the debts of the partnership incurred after they joined.
All of the debts of the partnership.
Only the debts of the partnership incurred before they joined.
QUESTION 5
Which of the following statements is not true about partnerships?
Partnership is essentially a matter of contract between the parties with an extra layer of statutory regulation imposed by the Partnership Acts of the states and territories.
Partnership is defined as the relation that subsists between persons carrying on a business in common with a view of profit.
The partnership pays tax at the flat corporate rate of tax.
The partnership agreement may be tailored to overcome the less desirable features of the default provisions in the Partnership Acts.
QUESTION 6
Which of the following payments is to be made first when distributing the partnership property on dissolution of the partnership?
Payment of firm debts to creditors ( including employees) who are not partners in the firm.
Payment of expenses attached to distributing partnership property ( eg accountant, auctioneer).
Payment of money loaned to the firm by a partner.
Repayment of capital contributed by the partners.
QUESTION 7
Which of the following is not a fiduciary duty owed by partners to the firm ( meaning the other partners)?
Duty to render true accounts.
Duty to account for private profits.
Duty to refraim from competing with the firm.
None of the above.
QUESTION 8
If the purpose of a partnership becomes illegal or contrary to public policy, it may be dissolved by any partner giving notice to the other partners.
True
False
QUESTION 9
A partnership may be dissolved by
court order.
by expiration of time.
by a partner providing a notice of termination of partnership to all the other partners.
by the death of a partner.
all of the above.
QUESTION 10
In a partnership
each partner is the agent of the other partners.
each partner is the principal of the other partners.
each partner is both principal and the agent of the other partners.
each partner is neither the principal nor the agent of the other partners.
QUESTION 11
Where a partner sets up a business in competition with the partnership firm, profits will have to be shared with the co-partners.
True
False
QUESTION 12
Members of which of the following forms of organisations enjoy the benefits of limited liability?
Companies.
Unincorporated associations.
Sole Traders
General partnerships.
All of the above.
QUESTION 13
Which of the following statements is not true about partnerships?
Unless the partnership deed provides otherwise, each partner has a right to take part in the managment of the partnership.
A partnership is a separate legal entity from the partners.
The maximum numbger of partners in a partnership is usually 20.
Unless the partnership deed provides otherwise, a partnership ceases to exist on the death, bankruptcy or retirement of a partner.
QUESTION 14
If notice of their retirement is given to all of the persons who have had dealings with the partnership, a person retiring from a partnership is liable for:
All of the debts of the partnership.
Only the debts of the partnership incurred after they retired.
Only the debts of the partnership incurred before they retired.
None of the debts of the partnership.
QUESTION 15
Before a partner can assign his/her right to receive a share of partnership profits to another person, the consent of the remaining partners must be obtained.
True
False