Which One of the Following Statements Is TRUE Regarding Partnerships

question 11

Multiple Choice

Which one of the following statements is TRUE regarding partnerships?

• A) The law recognises only those partnerships that are formed by the express (written or verbal) agreement of two or more parties.
• B) A partner is liable for the torts of other partners during the ordinary course of business.
• C) If there are more than two parties in a partnership, a majority vote is not only sufficient but also a requirement in making decisions.
• D) A limited partnership is where none of the partners can be held liable beyond a certain limit.
• E) A partnership exists wherever two or more parties carry on transaction jointly.