Business Partnership Multiple Choice Questions with Answers – PDF Download

MCQ 1: Sara and Ali earned a profit of $500, 000 from a business and their ratio of investment was 5 : 8 respectively. The profit of each should be:

1. $200,000 and $300,000
2. $150,000 and $350,000
3. $450,000 and $50,000
4. $192,308 and $307,692

MCQ 2: An association of 2 or more persons to carry on a business for the purpose of earning profit is known as:

1. partnership
2. legal entity
3. insurance
4. none of above

MCQ 3: If the capital of partners are invested for the same length of time, the partnership is said to be:

1. joint venture
2. simple partnership
3. Complex partnership
4. none of above

MCQ 4: John and Peter purchased Computer with an investment of $16, 000 and $20, 000 respectively. They earned a profit of $5000. The share of each should be:

1. $2,222 and $2,778
2. $2,000 and $3,000
3. $1,800 and $3,200
4. $2,500 and $2,500

MCQ 5: If the capital of partners are invested for the different length of times, whether equal or unequal, the partnership is said to be:

1. joint venture
2. simple partnership
3. Complex partnership
4. none of above