Is a form of business which is an agreement of two or more persons who bind themselves to contribute money property or industry to a common fund?
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1. In a contract of partnership, two or more person bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profit among themselves. Show
2. In a limited partnership, none of the partners has unlimited liability for the business debts. 3. A silent partner takes active part in the business of the partnership and is not known by outsiders to be a partner. 4. A partner's capital account is debited to reflect assets permanently withdrawn. 5. A limited partnership must have at least one general partner. 6. A partnership may be established for charity. 7. Assets invested in the partnership should be recorded at their cost to the partner. 8. All partnerships have a limited life and assets are co-owned by the partners. 9. A disadvantage of partnerships over corporations is the partners' unlimited liability. 10. There is no income tax imposed on a partnership. 11. A partnership has a juridical personality separate and distinct from that of each of the partners. 12. A partnership must always have two or more owners. 13.One of the partners in a proposed partnership is a multi-millionaire. The stipulation in the articles of partnership that this partner shall be excluded from sharing in the profits of the partnership is void. 14. All partnerships are subject to tax at the rate of 30% of taxable income. 15. When the partners invest assets other than cash in the partnership, their capital accounts should be credited with the current fair market values of the assets. 16. A dormant partner is one who does not take active part in the partnership business though may be known as a partner. 17. A partner usually retains title to assets contributed to a partnership, so that certain assets may be identified as belonging to a given partner. 18. In a general partnership, each partner's liability for losses is limited to his investment in the firm. 19. The basis of valuation for non-cash investment should be at values agreed upon by the partners. 20. A partnership has limited life because any change in the relationship of the partners dissolves the partnership. 21. The essence of partnership is that each partner must share in the profits of losses of the venture. 22. A partnership with a capital of P3,000 or more is valid even if it is unregistered with the Securities and Exchange Commission. 23. The partners' capital account is debited for the debit balance of the drawing account at the end of the period. 24. A partnership agreement should include the procedure for ending the business. 25. Each partner is personally liable for all debts of the partnership. 26. One advantage of a partnership over a corporate form of organization is the unlimite liability of partners. 27. A partner by estoppel is one who is actually not a partner but who represents himself as one. 28. The partner's capital account is debited for additional investment and credited for his share in profit. 29. A secret partner is one who does not take active part in the partnership business and is not known as a partner. 30. A partnership is created by mere agreement of the partners. 31. A partnership with a capital of less than P3,000 is void if it is unregistered with the Securities and Exchange Commission. 32. Each partner has a capital account and a drawing account. These accounts are used in a slightly different way compared to those in a sole proprietorship. 33. Adjustments prior to formation may be omitted since these will not affect the partner's capital credits. True or False 1. Work or services that may either be personal manual efforts or intellectual may also contributed to a partnership. 2. Ownership is easily transferred in a partnership. 3. A partnership cannot be established for religious purposes. 4. A partnership must always have at least two owners. 5. A proprietorship has a limited life whereas a partnership may have an unlimited life. 6. Not all of the partners in a general partnership are personally liable for all debts incurred by the partnership. 7. A dormant partner is one who does not take active part in the partnership business and is not known as a partner. 8. Accounting for partnership comes closer to accounting for a sole proprietorship than to accounting for a corporation. 9. Partner's drawing accounts have normal balances of credit balances. 10. The manner in which profits are to be shared should be specified in the articles of partnership. 11. A partnership should always be constituted in writing. 12. A public instrument needs to be executed when immovable property or real rights are contributed to the partnership. 13. Mutual agency means that each partner has the right to bind the partnership to contracts. 14. As long as the action is within the scope of the partnership, any partner can bind the partnership. 15. When the partnership capital is P3,000 or more, the public instrument must be recorded with the Securities and Exchange Commission. 16. A partnership with a capital of less than P3,000 is valid even if it is unregistered with the Securities and Exchange Commission. 17. Two or more persons may form a partnership for the exercise of a profession. Answer & Explanation Solved by verified expert ce dui lectus, congue vel laoreet ac, dictu cing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipis Unlock full access to Course Hero Explore over 16 million step-by-step answers from our library Subscribe to view answer Step-by-step explanation itur laoreet. amur l iaur l acipulv , cur l dicur l fur l suor ne aciur l ceur l ce dpulv entur l iturur l ceur l susur l isciur l suur l ipispulv tripulv ec aur l icur l ec aur l ng eur l iturur l ceur l suur l supulv iturur l iscipulv ec apulv susur l ac,llent ng epulv ec apulv ng elit. Nam amur l iapulv aciur l , cur l dicpulv icor ne remur l aciur l cepulv ce dur l entpulv iturur l ceur l susur l isciur l supulv ipisur l Student reviews 100% (2 ratings) When two or more persons bind themselves to contribute money property or industry to a common fund with the intention of dividing the profits among themselves?Local civil law defines partnership as a contract in which two or more persons bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits among themselves.
Is a legal agreement between 2 or more people responsible for a business?A business partnership agreement is a legal document between two or more business partners that spells out the business's legal structure and purpose. It outlines the following information: Individual partners' responsibilities.
What is partnership agreement also called?Partnership deed is a written legal document that contains an agreement made between two individuals who have the intention of doing business with each other and share profits and losses. It is also called a partnership agreement.
What is a partnership form of business?A partnership business, by definition, consists of two or more people who combine their resources to form a business and agree to share risks, profits and losses. Common partnership business examples include law firms, physician groups, real estate investment firms and accounting groups.
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