1. Dissolution of a partnership: A. implies that the business operations will halt. B. occurs when there is any change in the members of the partnership. C. implies that the business cannot continue with a new group of partners. D. implies that the business cannot form a different ownership structure.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
1. Dissolution of a partnership:
A. implies that the business operations will halt.
B. occurs when there is any change in the members of the partnership.
C. implies that the business cannot continue with a new group of partners.
D. implies that the business cannot form a different ownership structure.
2. In comparison with the single proprietorship form of organization, the partnership form offers which of the following advantages?
A. simple transfer of interest in the partnership to outsiders.
B. combination of ability and experience of the partners.
C. legal liability of each partner for all the debts of the partnership.
D. limited life
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