Business Partnership Quiz

25 Questions | By Iamrachelgrace7 | Updated: Mar 22, 2022 | Attempts: 9482

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Here, we are bringing to you this "Business Partnership Quiz. " A business has a lot of areas where you have to work upon to not just sustain but to grow your business. This quiz is based on the partnership and various other related aspects of a business. How business partnership works and rules and regulations related to it. Do you think you can pass? Well, try your luck here. Take this quiz and score well. Best of luck!

Questions and Answers

1.

If a partner is insolvent, his personal properties shall first be distributed:
- A.
  
  To the partners by way of additional contributions when the assets of the partnership were insufficient to settle all obligations
- B.
  
  To partnership and separate creditors in the ratio of their loan exposures
- C.
  
  To separate creditors
- D.
  
  To partnership creditors
2.

The advantage of a corporation from a partnership is
- A.
  
  The death of a shareholder will not dissolve the corporation because of the power of succession.
- B.
  
  Its management is centralized on the board of directors.
- C.
  
  Shareholders have limited liability
- D.
  
  Shareholders are not general agents of the business
- E.
  
  All of the above
3.

If a partner is insolvent, his personal properties shall last be distributed:
- A.
  
  To the partners by way of additional contributions when the assets of the partnership were insufficient to settle all obligations
- B.
  
  To partnership and separate creditors in the ratio of their loan exposures
- C.
  
  To separate creditors
- D.
  
  To partnership creditors
4.

Which of the following results in the dissolution of a partnership?
- A.
  
  The withdrawal of a partner from a partnership
- B.
  
  The receipt of share in profit by an existing partner
- C.
  
  The contribution of additional assets to the partnership by an existing partner.
- D.
  
  The winding up of the partnership and distribution of remaining assets to partners.
5.

Which of the following will not result in the dissolution of a partnership?
- A.
  
  Incapacity of a partner
- B.
  
  Negative capital balance of a partner
- C.
  
  The bankruptcy of a partner
- D.
  
  Admission of a new partner
6.

Accounting2 instructor?(wag nio ng tingnan sa fb ung tama!) BE HONEST KAHIT DITO LANG :)
- A.
  
  Ms. Rachel Anne M. Dela Cruz
- B.
  
  Ms. Rachel Grace M. Dela Cruz
- C.
  
  Ms. Rachelle Anne M. Dela Cruz
- D.
  
  Ms. Rachelle Grace M. Dela Cruz
7.

Right of the corporation to continue as a juridical entity for the period stated in the Articles of incorporation despite the death of any shareholder:
- A.
  
  Right of succession
- B.
  
  Right of pre-emption
- C.
  
  Right of existence
- D.
  
  None of the above
8.

Corporators in a stock corporation
- A.
  
  Incorporators
- B.
  
  Promoters
- C.
  
  Members
- D.
  
  Shareholders
9.

Refers to an equitable right of shareholders to subscribe to newly issued shares of the corporation in proportion to their present shares in order to maintain the equity in their surplus as well as proportionate standing in the corporation.
- A.
  
  Right to redemption
- B.
  
  Pre-emptive right
- C.
  
  Right to be sued
- D.
  
  Concept of corporate entity
10.

Persons who compose the corporation, whether as shareholders or members, are called
- A.
  
  Corporators
- B.
  
  Incorporators
- C.
  
  Promoters
- D.
  
  Subscribers
- E.
  
  None of the above
11.

The following is the priority sequence in which liquidation proceeds will be distributed for a partnership:
- A.
  
  Partnership liabilities, partnership capital balances, and partnership loans.
- B.
  
  Partnership liabilities, partnership loans, and partnership capital balances.
- C.
  
  Partnership drawings, partnership liabilities, partnership loans, and partnership capital balances.
- D.
  
  Partnership liabilities, partnership loans, partnership drawings, and partnership capital balances.
12.

In partnership, a new partner can only be admitted if he is a
- A.
  
  General partner
- B.
  
  Limited partner
- C.
  
  Industrial partner
- D.
  
  All of the above
13.

The arbitrary value assigned to a share of stock is called:
- A.
  
  Market value
- B.
  
  Par value
- C.
  
  Liquidation value
- D.
  
  Book value
- E.
  
  None of the above
14.

If a partner cannot clear his debts on dissolution, the other partners must clear these debts in the following manner:
- A.
  
  In the ratio of their last agreed capital balance
- B.
  
  Partnership profit/loss sharing ratio
- C.
  
  Debts are shared equally.
- D.
  
  Debts should not be cleared by other partners
15.

No par value share can not be issued:
- A.
  
  For less than P5.00
- B.
  
  With preference as to assets or as to dividends
- C.
  
  Without being fully paid
- D.
  
  All of the above
16.

In the absence of an agreement, profit and loss are divided by partners in the ratio of:
- A.
  
  Capital
- B.
  
  Equally
- C.
  
  Time devoted by each partner
- D.
  
  None of these
17.

It is the supreme authority in matters of management of the regular and business affairs of a corporation
- A.
  
  Board of directors
- B.
  
  Majority shareholders
- C.
  
  Minority shareholders
- D.
  
  None of the above
18.

At the time of admission of a new partner, the firm is:
- A.
  
  Dissolved
- B.
  
  Continued
- C.
  
  Not affected
- D.
  
  Re-organized
19.

The partnership may come to an end due to the
- A.
  
  Death of a partner
- B.
  
  Insolvency of partner
- C.
  
  The insanity of a partner
- D.
  
  All of the above
20.

Which of the following results in the dissolution of a partnership?
- A.
  
  The receipt of share in profit by an existing partner
- B.
  
  The withdrawal of a partner from a partnership
- C.
  
  The contribution of additional assets to the partnership by an existing partner
- D.
  
  The winding up of the partnership and the distribution of remaining assets to the partners.
21.

Loss on realization is distributed among partners:
- A.
  
  According to the profit and loss ratio
- B.
  
  According to capital contribution
- C.
  
  As decided among them
- D.
  
  None of the above
22.

In a partnership liquidation, the assets of the partnerships shall be applied lastly to
- A.
  
  Those owing to outside creditors
- B.
  
  Those owing to the partners with respect to their share of the profits
- C.
  
  Those owing to the partners with respect to their capital contributions
- D.
  
  Those owing to inside creditors in the form of loans or advances for business expenses by the partners
23.

A partnership is liquidating, and one of the partner's capital accounts has a deficit balance. What should happen?
- A.
  
  The deficit balance should be removed from the accounting records, and the remaining partners would share in any additional profits.
- B.
  
  The partner with the deficit should contribute enough personal assets to eliminate the deficit balance.
- C.
  
  The partner with the highest capital balance should allocate enough dollars to eliminate the deficit balance.
- D.
  
  The other partners should contribute personal assets to eliminate the deficit balance.
24.

In a partnership liquidation, the assets of the partnerships shall be applied first to
- A.
  
  Those owing to outside creditors
- B.
  
  Those owing to the partners with respect to their share of the profits
- C.
  
  Those owing to the partners with respect to their capital contributions
- D.
  
  Those owing to inside creditors in the form of loans or advances for business expenses by the partners
25.

Who has the right to vote(Corporation)?
- A.
  
  Shareholders-common shares
- B.
  
  Shareholders-preferred share
- C.
  
  Shareholders-common and preferred shares
- D.
  
  None of the above