Question 1

Which of the following is one of the grounds for which a court will dissolve a partnership?

Accepted Answer

A) If one of the partners dies. 
B) If the purpose of the partnership is or becomes illegal. 
C) If there has been persistent breach of the partnership agreement. 
D) If one of the partners is declared bankrupt. 
A) If one of the partners dies. 
B) If the purpose of the partnership is or becomes illegal. 
C) If there has been persistent breach of the partnership agreement. 
D) If one of the partners is declared bankrupt. C

Question 2

According to the Partnership Acts,the liability of partners in contract is severable.

Accepted Answer

A) True 
 B)False  False

Question 3

Why was the partnership found to be liable in the case of Polkinghorne v Holland [1934] HCA 28?

Accepted Answer

A) The negligent advice was given within the normal course of the business of the partnership. 
B) The negligent advice was given outside the partnership's business. 
C) The negligent advice was not given within the normal course of the business of the partnership. 
D) The negligent advice was given by a partner in the partnership without a disclaimer. 
A) The negligent advice was given within the normal course of the business of the partnership. 
B) The negligent advice was given outside the partnership's business. 
C) The negligent advice was not given within the normal course of the business of the partnership. 
D) The negligent advice was given by a partner in the partnership without a disclaimer. A

Question 4

The existence of a partnership is established solely by the sharing of profits and losses.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about partner's rights is true?

Accepted Answer

A) A partner who incurs liabilities at any time is entitled to indemnity from the other partners. 
B) Any partner may access the partnership books in order to inspect and copy them. 
C) Partners share in any profits and losses of the business in proportion to their investment in the business. 
D) The consent of a majority of the partners is needed to introduce a new partner to the partnership. 
A) A partner who incurs liabilities at any time is entitled to indemnity from the other partners. 
B) Any partner may access the partnership books in order to inspect and copy them. 
C) Partners share in any profits and losses of the business in proportion to their investment in the business. 
D) The consent of a majority of the partners is needed to introduce a new partner to the partnership.

Question 6

A 'limited' partner has what type of liability?

Accepted Answer

A) Limited partners are liable for the debts of the partnership beyond their capital contribution. 
B) Limited partners have unlimited liability for the debts of the partnership. 
C) Limited partners are not liable for the debts of the partnership beyond their agreed capital contribution. 
D) Limited partners have no liability for the debts of the partnership. 
A) Limited partners are liable for the debts of the partnership beyond their capital contribution. 
B) Limited partners have unlimited liability for the debts of the partnership. 
C) Limited partners are not liable for the debts of the partnership beyond their agreed capital contribution. 
D) Limited partners have no liability for the debts of the partnership.

Question 7

Which of the following situations is most likely to be a partnership?

Accepted Answer

A) Adam and Bruce have agreed to stage a play together and to share gross returns but not liability. 
B) Adam and Bruce carry on a restaurant business together. 
C) Adam and Bruce own land together;Adam owns two-thirds and Bruce owns one-third. 
D) Adam and Bruce own land together as joint tenants. 
A) Adam and Bruce have agreed to stage a play together and to share gross returns but not liability. 
B) Adam and Bruce carry on a restaurant business together. 
C) Adam and Bruce own land together;Adam owns two-thirds and Bruce owns one-third. 
D) Adam and Bruce own land together as joint tenants.

Question 8

Is it necessary for a partnership to advise customers when a partner retires?

Accepted Answer

Yes - In order to avoid incurring liabil

Question 9

A person who obtains credit for a partnership may make themselves liable to the supplier by 'holding out.'

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true?

Accepted Answer

A) A partnership will exist if the persons involved declare that they are in partnership. 
B) Sharing of profits and losses is an essential element of a partnership. 
C) All partners are equal. 
D) A partnership agreement must be in writing. 
A) A partnership will exist if the persons involved declare that they are in partnership. 
B) Sharing of profits and losses is an essential element of a partnership. 
C) All partners are equal. 
D) A partnership agreement must be in writing.

Question 11

Which of the following situations is most likely to be a partnership?

Accepted Answer

A) Adam and Bruce are joint owners of a property. 
B) Adam and Bruce work together on a single venture. 
C) Adam and Bruce share the net profits from a business. 
D) Adam and Bruce share the gross returns from a business. 
A) Adam and Bruce are joint owners of a property. 
B) Adam and Bruce work together on a single venture. 
C) Adam and Bruce share the net profits from a business. 
D) Adam and Bruce share the gross returns from a business.

Question 12

Identify the three circumstances required as proof of a partnership.

Accepted Answer

A partnership is defined as the relation

Question 13

When parties conduct an isolated commercial transaction,it is considered a joint venture rather than a partnership.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following does NOT fall within the implied authority of a partner to bind the firm?

Accepted Answer

A) Purchasing goods usually used by the firm. 
B) Receiving payments and giving receipts. 
C) Inviting others to join the partnership. 
D) Employing suitable staff. 
A) Purchasing goods usually used by the firm. 
B) Receiving payments and giving receipts. 
C) Inviting others to join the partnership. 
D) Employing suitable staff.

Question 15

In the absence of an agreement to the contrary,a person joining a partnership is liable for:

Accepted Answer

A) none of the debts of the partnership. 
B) only the debts of the partnership incurred after they joined. 
C) only the debts of the partnership incurred before they joined. 
D) all of the debts of the partnership. 
A) none of the debts of the partnership. 
B) only the debts of the partnership incurred after they joined. 
C) only the debts of the partnership incurred before they joined. 
D) all of the debts of the partnership.

Question 16

In what circumstances can a majority of partners expel a partner?

Accepted Answer

A) If the power to expel is contained in the partnership agreement and exercised in good faith. 
B) Partners cannot be expelled by a majority under any circumstances. 
C) If the partnership agreement contains the power to expel. 
D) Expulsion is allowed in equity for breach of fiduciary duties. 
A) If the power to expel is contained in the partnership agreement and exercised in good faith. 
B) Partners cannot be expelled by a majority under any circumstances. 
C) If the partnership agreement contains the power to expel. 
D) Expulsion is allowed in equity for breach of fiduciary duties.

Question 17

How would you explain to a person intending to form a partnership that although a written partnership agreement is not legally necessary,it is desirable?

Accepted Answer

Forming a partnership is a significant d

Question 18

A limited liability partnership can have a maximum of 20 general partners.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is NOT true?

Accepted Answer

A) Partnership books must be kept at the principal place of business of the partnership. 
B) There is a rebuttable presumption that partner's interests in capital,profits and losses will be equal. 
C) Partners are entitled to be paid interest on loans to the partnership at a rate agreed between the parties. 
D) Where the agreement allows a partner to introduce a new partner the terms of the agreement must be followed exactly. 
A) Partnership books must be kept at the principal place of business of the partnership. 
B) There is a rebuttable presumption that partner's interests in capital,profits and losses will be equal. 
C) Partners are entitled to be paid interest on loans to the partnership at a rate agreed between the parties. 
D) Where the agreement allows a partner to introduce a new partner the terms of the agreement must be followed exactly.

Question 20

Which of the following statements is NOT correct?

Accepted Answer

A) A limited partnership must be registered. 
B) A limited partner has only a limited role in management of the partnership business. 
C) A general partner has unlimited liability for partnership debts. 
D) A limited partnership must have at least one general partner. 
A) A limited partnership must be registered. 
B) A limited partner has only a limited role in management of the partnership business. 
C) A general partner has unlimited liability for partnership debts. 
D) A limited partnership must have at least one general partner.

Exam 20: Partnerships

Which of the following is one of the grounds for which a court will dissolve a partnership?

According to the Partnership Acts,the liability of partners in contract is severable.

Why was the partnership found to be liable in the case of Polkinghorne v Holland [1934] HCA 28?

The existence of a partnership is established solely by the sharing of profits and losses.

Which of the following statements about partner's rights is true?

A 'limited' partner has what type of liability?

Which of the following situations is most likely to be a partnership?

Is it necessary for a partnership to advise customers when a partner retires?

A person who obtains credit for a partnership may make themselves liable to the supplier by 'holding out.'

Which of the following statements is true?

Which of the following situations is most likely to be a partnership?

Identify the three circumstances required as proof of a partnership.

When parties conduct an isolated commercial transaction,it is considered a joint venture rather than a partnership.

Which of the following does NOT fall within the implied authority of a partner to bind the firm?

In the absence of an agreement to the contrary,a person joining a partnership is liable for:

In what circumstances can a majority of partners expel a partner?

How would you explain to a person intending to form a partnership that although a written partnership agreement is not legally necessary,it is desirable?

A limited liability partnership can have a maximum of 20 general partners.

Which of the following statements is NOT true?

Which of the following statements is NOT correct?

Legal Foundations

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How Law Is Made: Precedentstatute Law

Civil Liability: the Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties,discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Introduction to Companies and Incorporated Associations

Agency

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goodsbusiness to Business

Property and Mortgages

Intellectual Property

Ethics and Business Practice

Criminal Law in a Business Context

Competition Law

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