Practice Introduction - 1.1 | 1. Partnership | ICSE 12 Accounts | Allrounder.ai
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Introduction

1.1 - Introduction

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Learning

Practice Questions

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Question 1 Easy

What does mutual agency mean in a partnership?

💡 Hint: Think about how decisions are made in a team.

Question 2 Easy

What is unlimited liability?

💡 Hint: Consider what happens if the partnership cannot pay its debts.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does mutual agency allow partners to do?

Only one partner makes decisions
Each partner acts for the firm
Partners cannot bind each other

💡 Hint: Consider how decisions are made collectively.

Question 2

True or False: Goodwill is a tangible asset.

True
False

💡 Hint: Think about what goodwill represents.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

You have a partnership where Partner A has 60% of the profits. Partner B, who has 40%, decides to leave. How do you assess the value of goodwill?

💡 Hint: Think about how you would determine the impact of Partner B on overall profits.

Challenge 2 Hard

Discuss how the concept of unlimited liability impacts the decision-making process in a partnership.

💡 Hint: Consider personal risks associated with business decisions.

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