Reference no: EM132726484

Question - Partnership Nature and Formation

True or False (Please add an explanation so I can study it later. Thanks a lot!)

1. The advantages of a partnership over a sole proprietorship includes greater effectiveness in raising capital, better management because of pooling of skills and talents, mutual agency and exemption from income tax.

2. Right of succession allows the partnership to have indefinite life in as much as a retiring partner can easily transfer his right to other parties.

3. A partner may dispose of his interest in the partnership profits even without consent of the other partners.

4. A particular partnership is formed to pursue an individual transaction and divide profits from it.

5. A partner may contribute money, property and industry at the same time.

6. A partnership at will is a kind of partnership formed for a specific reason.

7. In a secret partnership, one or more of the partners is not known to the public.

8. An industrial partner participates in the profits but not in the losses of the business during partnership operation and liquidation.

9. A general - limited partner is a partner whose liability is limited to his capital contribution as far as the creditors are concerned.

10. A silent partner is one who does not take active part in partnership operations and is not known by the public as a partner.