Practice - Key Features of Partnership
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Practice Questions
Test your understanding with targeted questions
What is mutual agency?
💡 Hint: Think about how decisions affect all partners.
What is unlimited liability?
💡 Hint: Consider what happens if the business cannot pay its debts.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does mutual agency in a partnership imply?
💡 Hint: Consider the decision-making process within partnerships.
True or False: In a partnership without a deed, profits are shared equally.
💡 Hint: Recall the legal provisions governing partnerships.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A partnership firm, ABC, consists of three partners A, B, and C. A takes a loan in the firm’s name without consulting B and C. Discuss the implications for the other partners and the firm.
💡 Hint: Think about how mutual agency affects each partner's responsibilities.
Two partners, X and Y, share profits equally but have no written partnership deed. X decides to purchase new equipment without consulting Y. What consequences may arise for both partners?
💡 Hint: Consider the importance of mutual agreement in partnerships.
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