Partnership Admission Quiz

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Partnership admission basics

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Ananth Anthonisamy

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Partnership Admission Quiz


Partnership Admission QuizVersión en línea Partnership admission basics por Ananth Anthonisamy 1 Which document governs the admission of a new partner in a partnership? a Articles of incorporation b Partnership deed c Shareholders agreement d Memorandum of association 2 To admit a new partner, whose consent is usually required? a Consent of creditors b Consent of the government c Consent of customers d Consent of existing partners 3 What does a new partner typically contribute when admitted? a Interest income b Wages c Capital contribution d Managerial salary 4 Admission of a new partner commonly changes what aspect besides capital? a Court jurisdiction b Profit-sharing ratios c Liquidation value d Tax rates 5 What is goodwill in the context of admitting a partner? a Physical assets only b Cash in bank c Intangible asset reflecting business value beyond net assets d Inventory on hand 6 Admission of a new partner affects capital accounts and as well as which other account? a Goodwill account b Bank loan account c Tangible assets d Fixed assets 7 True or False: A new partner is automatically liable for all pre-existing debts of the firm. a Only for a portion of debts b True c False d Only if the debt is guaranteed by the new partner 8 When a partner is admitted, which fund or account is commonly created for their entry? a Capital reserve b Goodwill account c Depreciation fund d Retained earnings 9 Who must approve the admission of a new partner in a partnership? a Auditors b Court of law c Customers d Existing partners 10 If admission involves a premium for goodwill paid by the new partner, what is the typical effect? a Increases firm goodwill and the new partner’s capital b Discharges all firm debts c Reduces existing partners’ capital d Creates a tax exemption

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Partnership Admission Quiz

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Partnership Admission QuizVersión en línea

por Ananth Anthonisamy

Which document governs the admission of a new partner in a partnership?

To admit a new partner, whose consent is usually required?

What does a new partner typically contribute when admitted?

Admission of a new partner commonly changes what aspect besides capital?

What is goodwill in the context of admitting a partner?

Admission of a new partner affects capital accounts and as well as which other account?

True or False: A new partner is automatically liable for all pre-existing debts of the firm.

When a partner is admitted, which fund or account is commonly created for their entry?

Who must approve the admission of a new partner in a partnership?

If admission involves a premium for goodwill paid by the new partner, what is the typical effect?