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Partnership - SS1 Commerce Past Questions and Answers - page 1

1
In a general partnership, who shares equal responsibility and liability for the business?
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A

General partners

B

Limited partners

C

Silent partners

2
What is the main difference between a general partnership and a limited partnership?
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A

Limited liability of partners

B

Involvement in day-to-day management

C

Equal distribution of profits

3
How is a partnership formed?
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A

By registering with government authorities

B

By signing a partnership agreement

C

By obtaining a business license

4
What is the purpose of a partnership agreement?
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A

To determine the partnership's business name

B

To outline the roles and responsibilities of partners

C

To secure funding for the partnership

5
What type of partnership involves limited liability for some partners?
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A

General partnership

B

Silent partnership

C

Limited partnership

6
Define partnership in simple terms.
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7
What is the purpose of a partnership agreement?
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