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JAMB Principles of Accounts 1998 Question 33

Question 33

Partnership Accounts

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

  1. A.I and II only
  2. B.I, II and III only
  3. C.I, III and IV only
  4. D.II, III and IV only.
Show the answer and explanation

Answer: B (I, II and III only)

Explanation

The Partnership Act definition: persons carrying on a business in common with a view of profit. Liability of ordinary partners is unlimited.