QUESTION 11

A partnership capital account is opened for each partner to:

a) Keep track of the partners share of profits

b) Keep track of the partners original and subsequent contributions

c) Keep track of the partners drawing from the partnership

d) All of the options avialable

QUESTION 12

Which of the following statements is NOT true in regards to partnerships?

a) Partners are not easily able to limit their liability

b) Partnerships pay a company tax rate of 30%.

c) Partners are normally involved in the management of the partnership

d) Income, losses and control of the partnership is shared among the partners