Live MCQs Mock Test Fundamentals of Partnership (Need of Partnership) with Result (Free) Post author:Anurag Pathak Post published:September 13, 2025 Post category:Uncategorized Post comments:0 Comments Here is the Live MCQs Mock Test of Fundamentals of Partnership of the topic Neet of Partnership with Result for Free. 0% 1234567891011121314 You have 10 minutes to complete the Test. After completion, you would get your final result immediately. Your time is up. Need of Partnership 1 / 14 How does specialisation among partners affect decision-making in a partnership firm? It enhances expertise and efficiency in different business functions It results in individual partners working independently with no communication It results in individual partners working independently with no communication It complicates operations and delays decisions 2 / 14 Why is risk distribution considered an advantage in a partnership firm? The risk is entirely borne by one managing partner Losses and risks are shared among multiple partners Partners can transfer risk to external investors Risks are eliminated due to legal protection 3 / 14 Which of the following best explains why partnership firms are easier to form compared to other forms of Business? Partnerships require mandatory registration Partnerships require shareholders to file incorporation documents Partnerships need government approval before formation Partnerships can be formed through mutual agreement, even without legal formalities 4 / 14 Compared to sole proprietorships, how does a partnership firm manage business expansion more effectively? Sole proprietors have stronger financial backing Sole proprietorships have better loan accessibility Partnerships are restricted to small-scale business models Partnerships attract higher capital investment 5 / 14 Which of the following is the primary reason for converting a sole proprietorship into a partnership? To increase capital and share risks To expand into international markets To avoid paying taxes To reduce workload of employees In the case of a Partnership Firm, more capital can be introduced in the business through private funds and via loans, as all partners have their own creditworthiness. Apart from it, the risk is also shared among partners as per the agreement. 6 / 14 Which is the second best form the Business firm : Partnership Firm Proprietorship Firm Private Ltd Co. Public Limited Co. 7 / 14 Why is a partnership firm considered more suitable for large business operations compared to a sole proprietorship? Partnership firms face more legal restrictions than sole proprietorships Sole proprietors can hire more employees than partners Partnerships have the ability to gather larger financial resources Sole proprietorships are better structured for expansion 8 / 14 Which of the following best describes the distribution of rights and responsibilities in a partnership firm? All partners have the same duties irrespective of their roles Ownership is centralised under a single individual Responsibilities are divided based on expertise and mutual agreement Only one partner is responsible for decision-making 9 / 14 In what way does the division of work among partners benefit a partnership firm? It limits the scope of business operations It leads to increased financial losses It creates conflicts and reduces productivity It enhances efficiency through specialization 10 / 14 Which is the simplest type of Business Firm Proprietorship Firm Hindu Undivided Family Partnership Firm Private Ltd Co. 11 / 14 Which of the following is NOT a characteristic of partnership firms regarding their legal requirements? Partners can formulate their own terms without legal obligations Partnership firms operate based on mutual consent Registration of a partnership firm is not mandatory A written agreement between partners is required by law 12 / 14 Manish is running a restaurant. His recipes are popular in his city. Through social media, he became much more popular in the whole country. For now, he wants to expand his restaurant chain in his own state. Two of his cousins want to join his business. Both will contribute capital. One of his cousins is an expert in sales and marketing. Which form of business will be best for this business with minimal legal hurdles? Pvt Ltd company Partnership Hindu undivided family Proprietorship 13 / 14 What role does credit availability play in making partnerships more financially viable compared to sole proprietorships? It restricts borrowing power due to shared responsibilities It allows partners to individually secure loans It increases overall creditworthiness due to multiple owners It limits access to financial institutions 14 / 14 How does the presence of multiple partners impact the capital of a partnership firm? It reduces financial flexibility for growth It allows more capital to be pooled compared to sole proprietorships It minimizes the availability of funds for expansion It restricts capital investment opportunities Your score isThe average score is 0% 0% Restart quiz You Might Also Like Live MCQs of Fundamentals of Partnership (Features) with Result (Quiz – 2) September 22, 2025 Live MCQs Mock Test of Fundamentals of Parntership (Definition & Nature) (Quiz – 2) September 22, 2025 Live MCQs of Fundamentals of Partnership (Features) with Result (Quiz – 1) September 17, 2025 Leave a Reply Cancel replyCommentEnter your name or username to comment Enter your email address to comment Enter your website URL (optional) Save my name, email, and website in this browser for the next time I comment.
Live MCQs Mock Test of Fundamentals of Parntership (Definition & Nature) (Quiz – 2) September 22, 2025