Partnership

Question 1

each partner is considered an agent and will act on behalf of the
partnership in conducting the affairs of the business. However, the partner must
perform his function within the limits of authority conferred on him.

Answer 1

Mutual Agency

Question 2

like in a sole proprietorship, each partner has an unlimited
liability in the firm. If the assets of the business are insufficient to pay the firm’s
obligations and debts, the partner’s personal assets may be used for this purpose.

Answer 2

Unlimited liability

Question 3

agreement on how the partners will share in
the profits and losses of the partnership. As a general rule, the agreement must
be stated in the articles of co-partnership

Answer 3

Profit and Loss Sharing

Question 4

the life or existence of a partnership may be dissolved at any time by
action of the partners or by operation of law.

Answer 4

Limited life

Question 5

admission of new partner, dissolution, death, withdrawal or death of a partner

Answer 5

causes of dissolution