Quiz  /  Partnership Class 11 MCQ Questions With Answers

  • 1. 
    What is a major advantage of a business that is a partnership rather than a sole proprietorship?

  • The responsibility for the business is shared
  • The business is easy to set up
  • The partners are not responsible for business debts
  • The business is easy to sell

  • 2. 
    How is a general partnership organised?

  • Every partner shares equally in both responsibility and liability
  • The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership
  • No partner is responsible for the debts of the partnership beyond his or her investment
  • Only one partner is responsible for the debts of the partnership

  • 3. 
    List two disadvantages of partnership (REM)

  • (I) partners might not all contribute equal(ii) partnership has unlimited liability
  • (i) cash flow is often a problem(ii) there could be a lack of capital and cash flow
  • (i) limited amount of capital available (ii) ineffective services

  • 4. 
    How many partners are there in a typical partnership?

  • 2
  • 2-4
  • 2-20
  • 1

  • 5. 
    Which of the following is a disadvantage of setting up a business as a partnership?

  • Shared losses
  • Shared workload
  • Shared profit
  • More ideas generated

  • 6. 
    -Two or more owners-Lower taxes-Unlimited Liability

  • Partnership
  • Sole Proprietorship
  • Corporation
  • All of the above

  • 7. 
    Owners of a _____________________ are personally liable for the company's actions and debts.

  • Franchise
  • Sole proprietorship
  • Partnership
  • Corporation

  • 8. 
    When one person has full responsibility and the other is “silent partner” it is a:

  • General Partnership (GP)
  • Limited Liability Partnership (LLP)
  • Limited Partnership (LP)
  • it is not a partnership

  • 9. 
    More owners means more disagreements for what type of structure?

  • Public Limited
  • Partnerships
  • Private Limited
  • Sole Trader

  • 10. 
    _______________is a legal term for being held accountable

  • Liability
  • Assets
  • Bankruptcy
  • Claim

  • 11. 
    A _______________ is a business owned jointly by two or more people.

  • Partnership
  • Corporation
  • Limited Liability Corporation (LLC)
  • Sole Propirtorship

  • 12. 
    A partnership in which two or more people or firms combine their resources to complete one complex project.

  • joint venture
  • silent partner
  • nominal partner
  • secret partner

  • 13. 
    It is optional for a partnership firm to get registered

  • True
  • False
  • Partly true
  • None of the above

  • 14. 
    Seema and Beena partnered together to provide food and clothing to the needy by collecting it from the neighbourhood. Can this be called a partnership firm

  • Yes
  • No
  • Maybe
  • None of the above

  • 15. 
    It can continue as long as the partners want and is terminated when any partner gives a notice ofwithdrawal from partnership to the firm.

  • Partnership at will
  • Particular partnership
  • Limited partnership
  • Unlimited partnership

  • 16. 
    Liability of partners is unlimited in case of general partnership whereas it is limited incase of Limited Liability Partnership.

  • True
  • False
  • None of the above

  • 17. 
    A ...........partner is one whose association with the firm is unknown to the general public.

  • Active
  • Sleeping
  • Secret
  • Nominal

  • 18. 
    ...................... partnership in India has been granted after introduction of New Small Enterprise Policy in 1991

  • Limited liability
  • Limited

  • 19. 
    Who among the following partners does not contribute capital

  • Active
  • Sleeping
  • Secret
  • Partner by Estoppel

  • 20. 
    Partnership is the relation which subsists between persons who have agreed to combine their property,labour or skill in some business and to share the profits there from between them.

  • True
  • False
  • Partly true
  • None of the above

  • 21. 
    Minor has to give a public notice of his decision within ....... months of attaining majority

  • Six
  • (-6)

  • 22. 
    Decision is taken in partnership firm

  • Individually
  • By the partner who has invested more money
  • By anyone
  • Mutually

  • 23. 
    The existence of the limited liability partnership firm gets affected with the entry or exit of a partner

  • False
  • True
  • Maybe
  • None of the above

  • 24. 
    Partnership deed does not include the following

  • Name of the partners
  • Capital contributed by each partner
  • Method of resolving dispute
  • Rules for who can be admitted as a partner

  • 25. 
    Partnership firm is not legally required to publish its accounts and submit its reports. Which merit does this imply?

  • Sharing of risks
  • Secrecy
  • More funds
  • Easy formation
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