The rights and liabilities of partners among themselves . . .?
Select ONE answer:
- may be freely agreed.
- must be agreed with the partnership’s creditors.
- are governed by the Partnership Act, 1890.
- None of the above.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
- Correct
- Not correct – The creditors of the firm have no say in the matter (the partnership wouldn‘t have any creditors until after it has been formed anyway).
- Not correct – The Partnership Act 1890 governs the rights and liabilities of partners among themselves only in the absence of verbal or written agreement.
- Not correct
This work is licensed under a Creative Commons Attribution 4.0 International License.
