11.1 Partnership businesses are formed for several reasons. The objective of a partnership business is to ………….
11.2 Partnerships are different from joint ventures. Joint venturers come together to achieve a goal and ……….
11.3 A combination of technical, management, financial, and other expertise in a partnership business can reduce the risk of …….
11.4 With the exception of a limited partner, all other partners have ….. in a partnership business.
11.5 The minimum number of persons required to form a partnership business are ……..
11.6 The partnership ….. is an important document that is needed to eliminate contentions pertaining to money issues in the future.
11.7 In the absence of a partnership agreement, ….. shall receive interest on capital contributed before the estimation of profits.
11.8 Four business people (Anwuli, Ifunanya, Ndidi, and Omume) come together to form a partnership. Based on the partnership agreement, they will share profits in the ratio 5:3:2:1. The partnership’s profit for the year ended 31 December 2022 is ₦15 million. Calculate each partner’s share of profit.
11.9 Discuss the rationale for interest on capital in the partnership agreement or deed.
11.10 How is interest on capital treated in the accounting records of a partnership and each partner, respectively?
Comments