6 - types of trade

Question 1

what act defines partnership rules

Answer 1

partnership act 1890

Question 2

how does interest on capital work with the partnership act

Answer 2

no interest but 5% on advances beyond original capital

Question 3

what happens if there are debts of the partnership when a new partner joins?

Answer 3

they are not liable

Question 4

what happens if a partner retires while there are debts incurred

Answer 4

they are still liable unless the creditor agrees to release them

Question 5

what happens if a partner does not tell creditors about retiring

Answer 5

they are liable for debts after retiring

Question 6

what are the six reasons a partnership will be dissolved (partnership Act 1890)

Answer 6

the death or bankruptcy of a partner
expiry of a fixed term partnership
completion or termination of a single joint venture
subsequent illegality
notice given by a partner
order of the court

Question 7

what is the main feature of a limited partnership

Answer 7

one partner must have control and unlimited liability

Question 8

what five things must the incorporation document of an LLP show

Answer 8

the name
the location
the address of registered office
the names and addresses of all members
the names of two designated members

Question 9

what are three main requirements of designated members

Answer 9

filing notices with the Registrar
signing and filing partnership accounts
appointing auditors (if required)

Question 10

how soon after must changes in membership of an LLP be reported to the registrar

Answer 10

14 days