Partnerships Exam PDF

Test Unit 1 Prepare - Test Your Knowledge 5 OF 5 QUESTIONS REMAINING Test Content Question 1 1 Point Jake and Michael decide to import motorcycles from Europe to undercut expensive official...

Test Unit 1 Prepare - Test Your Knowledge 5 OF 5 QUESTIONS REMAINING Test Content Question 1 1 Point Jake and Michael decide to import motorcycles from Europe to undercut expensive official dealers in the UK. Michael, who can speak French, goes to France and orders the bikes. Jake pays the French seller directly. Jake gives Michael 10% of the difference between the 'official' UK price and the price Jake actually pays. Jake then sells the bikes in his shop. Indicate whether the following statement is true or false: Jake and Michael are in partnership together. A True B False Clear selection Question 2 1 Point Jamie and Malcolm went into partnership earlier this year. Jamie provided 25% and Malcolm 75% of the capital needed to buy the partnership assets. Jamie works full-time in the business, but it was agreed that Malcolm would not spend any particular number of hours working for the business and simply provide consultancy advice as and when requested by Jamie. There is no written partnership agreement and nothing else has been agreed. How will Jamie and Malcolm share the profits? Which one of the following is CORRECT? https://elite.law.ac.uk/ultra/courses/_69895894_1/outline/as 09_1/overview/attempt/_18418305_1?courseId=_69895894_1 17/11/2024, 14 41 Page 1 of 4 : s  A Jamie will be entitled to 25% of the profits and Malcolm will be entitled to 75%. B Jamie and Malcolm will each be entitled to 50% of the profits. Under the Partnership Act 1890, Jamie is entitled to a reasonable salary, and Jamie C and Malcolm will split the remainder of the profits between them equally. Because Malcolm is under no obligation to work for the business, he will not be entitled to a salary but James will be entitled to a reasonable sum for the work he D carries out. Malcolm and Jamie will then split the remainder of the profits between them, Malcolm receiving 75% and Jamie 25%. Question 3 1 Point Muriel, Molly and Marilyn have been in partnership since 1990. They all work full-time for the business. They share profits equally and have no relevant express agreement between them. Which one of the following is CORRECT? If Molly leaves the business, she could be prevented from setting up a competing A business. B Each partner is entitled to receive a salary in addition to her share of the profits. C Muriel and Molly together could expel Marilyn, even if Marilyn objects. Any of the 3 partners could dissolve the partnership at any time without giving a D reason. Question 4 1 Point John, Andrew and Robert have been in partnership together for 3 years and they have no partnership agreement. John has recently been declared bankrupt. https://elite.law.ac.uk/ultra/courses/_69895894_1/outline/as 09_1/overview/attempt/_18418305_1?courseId=_69895894_1 17/11/2024, 14 41 Page 2 of 4 : s Indicate whether the following statement is true or false: Andrew and Robert can insist on continuing the business in partnership without John, who will have to retire. A True B False Clear selection Question 5 1 Point Two years ago Adam, Rebecca and Kamal set up a partnership. Their agreement provides for income and capital profits to be shared in the same proportions as their capital contributions which were: Adam - £10,000, Rebecca - £10,000 and Kamal - £20,000. The business has just ceased to trade, having a total realisable value of £24,000 after allowing for payment of all claims on the partnership including the partners' capital contribution. How much should Kamal receive from this £24,000? Which one of the following is CORRECT? A £12,000 B £8,000 C £20,000 D £6,000 Additional content Drag and drop files here or click to add text. https://elite.law.ac.uk/ultra/courses/_69895894_1/outline/as 09_1/overview/attempt/_18418305_1?courseId=_69895894_1 17/11/2024, 14 41 Page 3 of 4 : s  Questions Filter (5) Save and Close Submit https://elite.law.ac.uk/ultra/courses/_69895894_1/outline/as 09_1/overview/attempt/_18418305_1?courseId=_69895894_1 17/11/2024, 14 41 Page 4 of 4 : s