Review Materials (True or False)

Question 1

The life expectancy of a partnership depends on the desire of the partners, by death, acceptance, and withdrawal of incapacity of any of the partners. True or False?

Answer 1

True

Question 2

A partnership is formed by agreement and mutual consent while a corporation is by operation of
law. True or False?

Answer 2

True

Question 3

Like corporations, partnerships have an infinite life. True or False?

Answer 3

False. Partnerships have limited life.

Question 4

A partnership cannot enter contracts in its name. True or False?

Answer 4

False. It can enter contract in its name.

Question 5

Once a partnership is formed, it becomes a separate legal person, with a separate and distinct
personality from the partners owning it. True or False?

Answer 5

True

Question 6

The relation of partners arises from contract and not from the statute of law or inheritance. True or False?

Answer 6

True

Question 7

Since partnership is a contract, it can only be entered into by persons who are legally capable
to enter a contract. True or False?

Answer 7

True