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29. Partnerships

Choose the correct word or phrase in the following statements about partnerships.

1.

If a partner is liable only to the amount of capital he invested he is a limited partner.

a) liability

c) corporate

b) limited

d) dead

2.

The partners want an official agreement about their share in the partnership, so they are going to draw up a / an __________ of partnership.

a) deed

c) title

b) transaction

d) instrument

3.

If there isn’t an official written agreement, but a partner signs a balance sheet which shows that profits have not been shared equally, agreement would be __________ .

a) implied

c) drawn

b) stated

d) believed

4.

Partners can choose to produce fixed capital accounts or __________ capital accounts.

a) changeable

c) variable

b) moving

d) fluctuating

5.

A partner who does not take an active part in the business is called a __________ partner.

a) silent

c) sleeping

b) dead

d) inactive

6.

When partners can’t or don’t want to continue in partnership there is a __________ of the partnership.

a) divorce

c) amalgamation

b) decomposition

d) dissolution

7.

When this happens a __________ Account is opened to record the transactions.

a) Sales

c) Distribution

b) Realization

d) Liability

8.

When the partnership comes to an end, the debts or liabilities are __________ .

a) discharged

c) distributed

b) disposed

d) dissolved

9.

One partner, who owes the partnership money, will have to cancel his __________ to the partnership firm.

a) deal

c) indebtedness

b) claim

d) articles

In Britain groups of professional people such as accountants, lawyers, dentists and vets often form partnerships. Can you think of any other groups that form partnerships?