1. There is no maximum limit to the
number of partners in a firm. (False)
2. Each partner has a right to take
part in the conduct of the business firm. (True)
3. Sleeping partners is one who takes
active part in the conduct of business. (False)
4. Partnership agreement must be in
written form. (False)
5. Partnership firm is a trading
concern. (True)
6. Partners must share profits and
losses equally. (False)
7. The interest on drawings is an
income of the partnership firm. (True)
8. Partner's current account is opened,
when fluctuating capital method is adopted. (False)
9. A partner who provides only capital
to the form is called as nominal partner. (False)
10. An interest on capital is an
expenditure of the partnership firm. (True)
11. The balance of capital account
remains constant under fixed capital method. (True)
12. If the partnership deed is silent,
partners share profits and losses equally. (True)
13. Partnership is an association of
two or more persons. (True)
14. Partnership current account always
shows credit balance. (False)
15. The liability of minor partner is
limited. (True)
16. Capital account always shows credit
balance. (False)
17. Partners are entitled to get salary
or commission. (False)
