Accounting Multiple Choice Question – 11 April 2020

The rights and liabilities of partners among themselves . . .?

Select ONE answer:

1. may be freely agreed.
2. must be agreed with the partnership’s creditors.
3. are governed by the Partnership Act, 1890.
4. 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

1. Correct
2. 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).
3. Not correct – The Partnership Act 1890 governs the rights and liabilities of partners among themselves only in the absence of verbal or written agreement.
4. Not correct

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