18 Questions
In a partnership, if there is no agreement regarding it, how are profits or losses divided among partners?
According to the partner's capital balances
When a partner contributes an asset to a partnership, what does that asset become?
Common property of all the partners
What type of partner has unlimited liability in a partnership?
General Partner
For a Limited Partner in a partnership, how far does their liability extend?
Only up to his interest in the partnership
Which type of partner contributes money and/or assets other than cash, building, equipment, or any property?
Capitalist Partner
A partner who contributes both cash and knowledge or personal service is known as:
Capitalist-Industrial Partner
What is a characteristic of a partnership that involves each partner being an agent of the partnership for business purposes?
Mutual agency
Which event does not contribute to the limited life of a partnership?
The division of profits
What type of partner is said to have unlimited liability in a partnership?
General partner
Which characteristic of a partnership involves the co-ownership of contributed assets?
Limited life
In a partnership, what is responsible for the business acts of his partners within the scope of the business of the partnership?
Mutual agency
Which event does not result in limited liability for general and industrial partners in a partnership?
The adoption of a new partner
What does the Civil Code of the Philippines define as a partnership?
A co-ownership where two or more persons contribute to a common fund
In a partnership, how are profits typically divided?
Equally among all partners
What does 'unlimited liability' refer to in the context of partnership?
Liability extending beyond the capital invested to personal assets
What types of partners can a partnership have based on the text?
Unlimited number of partners
Why is there a limited term of existence in partnerships?
Partnerships dissolve upon the death, withdrawal, or bankruptcy of a partner
What does limited skills, talents, and capabilities refer to as a disadvantage of sole-proprietorship?
The lack of expertise in managing the business effectively
Explore the characteristics of a partnership in financial management, such as mutual agency, voluntary association, unlimited liability, and more. Understand how a partnership is formed through a contract and the key features it entails.
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