JAMB Accounting 2015 Objective — Question 33
Question 33 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.
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Which of the following indicate that a partnership business is in place? (i) There is a business (ii) It is run commonly by partners (iii) It has profit-making in view (iv) Partners' liability is limited
- A. i and ii only
- B. i, ii and iii only
- C. i, ii and iii
- D. ii, iii and iv onlyCorrect
Explanation
A partnership is characterised by (i) a business existing, (ii) common running by partners, and (iii) intent to make profit; partners' liability being limited (iv) is not a defining feature — the mere presence of a business does not automatically make it a partnership.
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