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 Which of the following best describes the distribution of rights and responsibilities in a partnership firm? Responsibilities are divided based on expertise and mutual agreement All partners have the same duties irrespective of their roles Ownership is centralised under a single individual Only one partner is responsible for decision-making 2 / 14 In what way does the division of work among partners benefit a partnership firm? It creates conflicts and reduces productivity It limits the scope of business operations It leads to increased financial losses It enhances efficiency through specialization 3 / 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? Partnership Pvt Ltd company Hindu undivided family Proprietorship 4 / 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 5 / 14 How does specialisation among partners affect decision-making in a partnership firm? It results in individual partners working independently with no communication It complicates operations and delays decisions It enhances expertise and efficiency in different business functions It results in individual partners working independently with no communication 6 / 14 Which of the following best explains why partnership firms are easier to form compared to other forms of Business? Partnerships require shareholders to file incorporation documents Partnerships need government approval before formation Partnerships require mandatory registration Partnerships can be formed through mutual agreement, even without legal formalities 7 / 14 Which is the simplest type of Business Firm Hindu Undivided Family Proprietorship Firm Private Ltd Co. Partnership Firm 8 / 14 What role does credit availability play in making partnerships more financially viable compared to sole proprietorships? It limits access to financial institutions It restricts borrowing power due to shared responsibilities It allows partners to individually secure loans It increases overall creditworthiness due to multiple owners 9 / 14 Which of the following is NOT a characteristic of partnership firms regarding their legal requirements? A written agreement between partners is required by law Partners can formulate their own terms without legal obligations Partnership firms operate based on mutual consent Registration of a partnership firm is not mandatory 10 / 14 Which of the following is the primary reason for converting a sole proprietorship into a partnership? To expand into international markets To avoid paying taxes To reduce workload of employees To increase capital and share risks 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. 11 / 14 Compared to sole proprietorships, how does a partnership firm manage business expansion more effectively? Sole proprietorships have better loan accessibility Partnerships are restricted to small-scale business models Sole proprietors have stronger financial backing Partnerships attract higher capital investment 12 / 14 Why is a partnership firm considered more suitable for large business operations compared to a sole proprietorship? Sole proprietorships are better structured for expansion Sole proprietors can hire more employees than partners Partnerships have the ability to gather larger financial resources Partnership firms face more legal restrictions than sole proprietorships 13 / 14 Which is the second best form the Business firm : Private Ltd Co. Partnership Firm Public Limited Co. Proprietorship Firm 14 / 14 How does the presence of multiple partners impact the capital of a partnership firm? It reduces financial flexibility for growth It restricts capital investment opportunities It allows more capital to be pooled compared to sole proprietorships It minimizes the availability of funds for expansion Your score isThe average score is 0% 0% Restart quiz You Might Also Like [CUET] Mock Test of Fundamentals of Partnership (Partnership Deed) (Part – 2) October 15, 2025 Live MCQs Mock Test Fundamentals of Partnership (Definition & Nature) with Result (Free) September 16, 2025 CUET Mock Test of Fundamentals of Partnership (Rules in the Absence of Partnership Deed) – 2 October 16, 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 Fundamentals of Partnership (Definition & Nature) with Result (Free) September 16, 2025
CUET Mock Test of Fundamentals of Partnership (Rules in the Absence of Partnership Deed) – 2 October 16, 2025