1. A capitalist partner can be a limited partner.

TRUE

2. The characteristic of unlimited liability is a disadvantage from the viewpoint of the partnership creditors.
FALSE

3. A capitalist partner cannot be a limited partner.

FALSE

4. Changes in partners’ equity is shown in the income statement.

FALSE

5. A general partner can also be an industrial partner.

TRUE

6. The partnership by-laws is a written contract between partners that specifies the name, location, and
nature of the business; the duties of each partner; and the method of sharing profits and losses among
the partners.
FALSE

7. Profit share of each partner is shown in the Statement of Partners Equity

TRUE

8. An industrial partner cannot be a limited partner.

TRUE

9. In a partnership Statement of Financial Position, each partner’s assets, liabilities, and equity will be
shown separately.
FALSE

10. Partnership has the ability to raise more capital than a corporation.
FALSE

11. A decrease in the capital of one or more partners with a corresponding increase in the capital of
another partner(s), without cash being involved, is a transfer of interest called bonus.
TRUE

12. It is easier to change ownership in a corporation than in a partnership.

TRUE

13. An asset received from a partner as a contribution is recorded at its historical cost.
FALSE

14. An industrial partner cannot be a general partner.

FALSE

15. In a general partnership, the partners have unlimited personal liability for the debts of the business.
TRUE