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All questions of Unit 1: General Nature of Partnership for CA Foundation Exam
Can you explain the answer of this question below: A public company can have a maximum of _________member.
- A:
Unlimited
- B:
50
- C:
20
- D:
10
The answer is a.
A public company can have a maximum of _________member.
Unlimited
50
20
10
|
Arun Khanna answered |
There is no upper limit in case of a public limited company.
No Maximum number as such, can be unlimited.
In case of Partnership, in the event of losses, unless agreed otherwise, the loss is to be borne by all the partners_________.- a)Equally
- b)In profit sharing ratio
- c)In capital ratios
- d)By draw of lots
Correct answer is option 'B'. Can you explain this answer?
In case of Partnership, in the event of losses, unless agreed otherwise, the loss is to be borne by all the partners_________.
a)
Equally
b)
In profit sharing ratio
c)
In capital ratios
d)
By draw of lots
|
Priya Patel answered |
Sharing profits of the business: First, there must exist a business i.e. trade, occupation and profession. The motive of the business is the acquisition of gains. Therefore there can be no partnership where there is no intention to carry on
the business and to share the profit thereof. Secondly, there must be an agreement to share profits. The agreement to share losses is not an essential element. However in the event of losses, unless agreed otherwise, these must be born in the profit sharing ratio.
Sharing of profit is ________ evidence of existence of partnership.- a)Conclusive
- b)Not a conclusive
- c)Confirmative
- d)Collaborative
Correct answer is option 'C'. Can you explain this answer?
Sharing of profit is ________ evidence of existence of partnership.
a)
Conclusive
b)
Not a conclusive
c)
Confirmative
d)
Collaborative
|
Parth Lele answered |
As per I learnt Sharing of Profits is just a Prima Facie Evidence So the answer should be b)Not a conclusive because as per law language the answer b) is more appropriate
The maximum number of partners is mentioned in- a)The Partnership Act
- b)The General Clauses Act
- c)The Companies Act
- d)The Societies Registration Act
Correct answer is option 'C'. Can you explain this answer?
The maximum number of partners is mentioned in
a)
The Partnership Act
b)
The General Clauses Act
c)
The Companies Act
d)
The Societies Registration Act
|
Vandana Kulkarni answered |
The maximum number of partners in a company is mentioned in the Companies Act. Let's discuss this in more detail below.
Companies Act and Maximum Number of Partners
The Companies Act, 2013, governs the formation, management, and winding up of companies in India. It specifies the rules and regulations that companies must follow, including the maximum number of partners they can have.
According to Section 2(68) of the Companies Act, a company can be formed by two or more persons, and the maximum number of partners in any such company cannot exceed 200. This means that a company can have a minimum of two partners and a maximum of 200 partners.
However, there are some exceptions to this rule. In the case of a private company, the maximum number of partners is restricted to 200, but the minimum number of partners is only two. A single person cannot form a private company.
In the case of a public company, there is no restriction on the maximum number of partners. However, the minimum number of partners is seven.
Conclusion
Thus, it can be concluded that the maximum number of partners allowed in a company is specified in the Companies Act, 2013. The act governs the formation, management, and winding up of companies in India and sets out rules and regulations that companies must follow. The maximum number of partners in any company cannot exceed 200, except in the case of a public company where there is no restriction on the maximum number of partners.
Companies Act and Maximum Number of Partners
The Companies Act, 2013, governs the formation, management, and winding up of companies in India. It specifies the rules and regulations that companies must follow, including the maximum number of partners they can have.
According to Section 2(68) of the Companies Act, a company can be formed by two or more persons, and the maximum number of partners in any such company cannot exceed 200. This means that a company can have a minimum of two partners and a maximum of 200 partners.
However, there are some exceptions to this rule. In the case of a private company, the maximum number of partners is restricted to 200, but the minimum number of partners is only two. A single person cannot form a private company.
In the case of a public company, there is no restriction on the maximum number of partners. However, the minimum number of partners is seven.
Conclusion
Thus, it can be concluded that the maximum number of partners allowed in a company is specified in the Companies Act, 2013. The act governs the formation, management, and winding up of companies in India and sets out rules and regulations that companies must follow. The maximum number of partners in any company cannot exceed 200, except in the case of a public company where there is no restriction on the maximum number of partners.
Which of these statements is not true with respect to a Joint Hindu Family Business?
- a)Coparcener is liable only to the extent of his share in the family property
- b)A Joint Hindu Family firm arises on the basis of status i.e. Birth or by operation of law
- c)Death of a coparcener does not dissolve the Joint Hindu Family firm
- d)It can have female members
Correct answer is option 'A'. Can you explain this answer?
Which of these statements is not true with respect to a Joint Hindu Family Business?
a)
Coparcener is liable only to the extent of his share in the family property
b)
A Joint Hindu Family firm arises on the basis of status i.e. Birth or by operation of law
c)
Death of a coparcener does not dissolve the Joint Hindu Family firm
d)
It can have female members
|
Nandini Iyer answered |
To determine which statement is not true with respect to a Joint Hindu Family Business, let's analyze each statement:
-
It can have female members:
- This is true. As per the Hindu Succession (Amendment) Act, 2005, daughters are recognized as coparceners and have the same rights as sons in the Joint Hindu Family property.
-
A Joint Hindu Family firm arises on the basis of status i.e. Birth or by operation of law:
- This is true. A Joint Hindu Family business is created by the birth of a male member into the family and not by an agreement between parties.
-
Death of a coparcener does not dissolve the Joint Hindu Family firm:
- This is true. The death of a coparcener does not dissolve the Joint Hindu Family business; it continues with the remaining members.
-
Coparcener is liable only to the extent of his share in the family property:
- This is not true. In a Joint Hindu Family Business, the liability of the coparceners is typically unlimited. This means that the personal property of the coparceners can also be used to settle the debts of the family business.
Therefore, the statement that is not true with respect to a Joint Hindu Family Business is:
- Coparcener is liable only to the extent of his share in the family property.
Active partner is one who:- a)Takes part in the business of the firm
- b)Actively participates in co-curricular activities
- c)Actively shares the profits
- d)Makes a show of authority
Correct answer is option 'A'. Can you explain this answer?
Active partner is one who:
a)
Takes part in the business of the firm
b)
Actively participates in co-curricular activities
c)
Actively shares the profits
d)
Makes a show of authority
|
Manisha Gupta answered |
Active means to manage business actively on regular basis
Partnership deed is also called as:- a)Partnership document
- b)Articles of Partnership
- c)Both of the above
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
Partnership deed is also called as:
a)
Partnership document
b)
Articles of Partnership
c)
Both of the above
d)
None of the above
|
Jayant Mishra answered |
A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation. It has the force of law and is designed to guide the partners in the conduct of the business.
Registration of a firm is____________- a)Compulsory
- b)Optional
- c)Occasional
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
Registration of a firm is____________
a)
Compulsory
b)
Optional
c)
Occasional
d)
None of the above
|
|
Ankita Mukherjee answered |
Introduction:
Registering a firm is an important step for any business entity. It not only provides legal recognition to the business but also helps in availing various benefits and protections offered under the law.
Explanation:
The given statement is "Registration of a firm is optional". Let us understand why registration of a firm is optional.
- No legal requirement: There is no legal requirement for a firm to register itself. However, if the firm wishes to avail certain benefits and protections offered under the law, it may choose to register itself.
- Advantages of registration: Registration of a firm provides certain advantages such as legal recognition, separate legal entity status, limited liability protection, access to credit facilities, etc.
- Types of registration: A firm can be registered under various laws such as the Companies Act, 2013, Partnership Act, 1932, Limited Liability Partnership Act, 2008, etc. The type of registration depends on the nature of the business entity and the number of members involved.
- Compliance requirements: Once a firm is registered, it is required to comply with various legal and regulatory requirements such as filing of annual returns, maintenance of books of accounts, payment of taxes, etc.
Conclusion:
In conclusion, registration of a firm is not compulsory but it is advisable to do so in order to avail the benefits and protections offered under the law. It is important to comply with the legal and regulatory requirements once a firm is registered.
Registering a firm is an important step for any business entity. It not only provides legal recognition to the business but also helps in availing various benefits and protections offered under the law.
Explanation:
The given statement is "Registration of a firm is optional". Let us understand why registration of a firm is optional.
- No legal requirement: There is no legal requirement for a firm to register itself. However, if the firm wishes to avail certain benefits and protections offered under the law, it may choose to register itself.
- Advantages of registration: Registration of a firm provides certain advantages such as legal recognition, separate legal entity status, limited liability protection, access to credit facilities, etc.
- Types of registration: A firm can be registered under various laws such as the Companies Act, 2013, Partnership Act, 1932, Limited Liability Partnership Act, 2008, etc. The type of registration depends on the nature of the business entity and the number of members involved.
- Compliance requirements: Once a firm is registered, it is required to comply with various legal and regulatory requirements such as filing of annual returns, maintenance of books of accounts, payment of taxes, etc.
Conclusion:
In conclusion, registration of a firm is not compulsory but it is advisable to do so in order to avail the benefits and protections offered under the law. It is important to comply with the legal and regulatory requirements once a firm is registered.
An unregistered firm cannot claim____________- a)Set on
- b)Set off
- c)Set on and set off
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
An unregistered firm cannot claim____________
a)
Set on
b)
Set off
c)
Set on and set off
d)
None of the above
|
|
Sinjini Gupta answered |
Unregistered firms cannot claim set-off in GST returns. This means that they cannot adjust the GST paid on purchases against the GST collected on sales. Let's look at this in more detail below.
What is Set-off in GST?
Set-off in GST refers to the adjustment of the GST paid on purchases against the GST collected on sales. This helps in reducing the final GST liability of the taxpayer.
What is an Unregistered Firm?
An unregistered firm is a business that is not registered under the GST regime. As per the GST Act, businesses with an annual turnover of less than Rs.20 lakhs (Rs.10 lakhs for special category states) are not required to register for GST. However, unregistered firms cannot avail the benefits of input tax credit or claim set-off.
Why can't Unregistered Firms claim Set-off in GST?
Unregistered firms cannot claim set-off in GST because they are not registered under the GST regime. To claim set-off, a business should be registered under GST and file GST returns. Since unregistered firms are not registered, they cannot file GST returns and hence cannot claim set-off.
Conclusion
Unregistered firms cannot claim set-off in GST returns. This means that they cannot adjust the GST paid on purchases against the GST collected on sales. To claim set-off, a business should be registered under GST and file GST returns.
What is Set-off in GST?
Set-off in GST refers to the adjustment of the GST paid on purchases against the GST collected on sales. This helps in reducing the final GST liability of the taxpayer.
What is an Unregistered Firm?
An unregistered firm is a business that is not registered under the GST regime. As per the GST Act, businesses with an annual turnover of less than Rs.20 lakhs (Rs.10 lakhs for special category states) are not required to register for GST. However, unregistered firms cannot avail the benefits of input tax credit or claim set-off.
Why can't Unregistered Firms claim Set-off in GST?
Unregistered firms cannot claim set-off in GST because they are not registered under the GST regime. To claim set-off, a business should be registered under GST and file GST returns. Since unregistered firms are not registered, they cannot file GST returns and hence cannot claim set-off.
Conclusion
Unregistered firms cannot claim set-off in GST returns. This means that they cannot adjust the GST paid on purchases against the GST collected on sales. To claim set-off, a business should be registered under GST and file GST returns.
Partnership cannot be formed between - a)Two artificial persons
- b)Naturally borne and artificial persons
- c)Between two naturally borne persons
- d)None of the above
Correct answer is option 'D'. Can you explain this answer?
Partnership cannot be formed between
a)
Two artificial persons
b)
Naturally borne and artificial persons
c)
Between two naturally borne persons
d)
None of the above
|
|
Arun Khanna answered |
A firm as such cannot enter into an agreement as a partner with another firm or individuals. And agreement between partners to carry on a business and to share its profits may be followed by a separate agreement between the same partners to carry on another business and share the profits therein.
The most important element in partnership is:- a)Business
- b)Sharing of Profits
- c)Agreement
- d)Business to be carried on by all or any of them acting for all.
Correct answer is option 'D'. Can you explain this answer?
The most important element in partnership is:
a)
Business
b)
Sharing of Profits
c)
Agreement
d)
Business to be carried on by all or any of them acting for all.
|
|
Arun Khanna answered |
The most important element in partnership is partnership provides that the business must be carried on by all the partners or any (one or more) of them acting for them all, i.e. there must be a mutual agency.
Thus, every partner, is both an agent and principal for himself and other partners, i.e. he can bind by his acts the other persons and can be bound by the acts of other partners. The importance of the element of mutual agency lies in the fact that it enables every partner to carry on the business on behalf of others.
A rented a house from X for carrying on the business of the firm. After one month A did not pay the rent. B and C are other partners of the firm. X can claim his rent from:- a)A only
- b)All the Partners
- c)B and C only
- d)A and C only
Correct answer is option 'B'. Can you explain this answer?
A rented a house from X for carrying on the business of the firm. After one month A did not pay the rent. B and C are other partners of the firm. X can claim his rent from:
a)
A only
b)
All the Partners
c)
B and C only
d)
A and C only
|
Dashvanth Kumar answered |
Here A had taken the house from X for the purpose of carrying business on behalf of the firm and hence according to Indian Partnership Act 1932 any act done by any partner on behalf of the firm makes all the partners liable for that particular activity
The maximum numbers of partners is mentioned- a)The Partnership Act
- b)The Companies Act
- c)The Societies Registration Act
- d)The Limited Liability Partnership Act
Correct answer is option 'B'. Can you explain this answer?
The maximum numbers of partners is mentioned
a)
The Partnership Act
b)
The Companies Act
c)
The Societies Registration Act
d)
The Limited Liability Partnership Act
|
Suhani Dangarh answered |
Yes it is mentioned in companies act 2013 alongwith rule no.10 of companies rules
Can you explain the answer of this question below:M, is employed as a manager by a partnership firm ABC Brothers; M is entitled to a salary of Rs. 50,000 per month and 10% of profits of the firm only, if profits of the firm exceed Rs. 30 lakhs in a year. State whether M:
- A:
Be called a partner in the firm
- B:
Not to be called a partner in the firm
- C:
The appointment of M is invalid
- D:
M can claim only 50,000 per month but not a share in the profits of the firm
The answer is b.
M, is employed as a manager by a partnership firm ABC Brothers; M is entitled to a salary of Rs. 50,000 per month and 10% of profits of the firm only, if profits of the firm exceed Rs. 30 lakhs in a year. State whether M:
Be called a partner in the firm
Not to be called a partner in the firm
The appointment of M is invalid
M can claim only 50,000 per month but not a share in the profits of the firm
|
Tanya Mishra answered |
B is correct as if he will get share in profit which is 3 lac per annum but being a manager he gets 6 lac per annum so he will not be called partner of the firm
The position of a minor in a partnership firm is to be determined taking into account1 . The Indian Contract Act, 18722 . The Indian Partnership Act, 19323 . Minor’s agreement4 . The Majority Act, 1875- a)1 & 2
- b)2 & 3
- c)3 & 4
- d)1 & 4
Correct answer is option 'A'. Can you explain this answer?
The position of a minor in a partnership firm is to be determined taking into account
1 . The Indian Contract Act, 1872
2 . The Indian Partnership Act, 1932
3 . Minor’s agreement
4 . The Majority Act, 1875
a)
1 & 2
b)
2 & 3
c)
3 & 4
d)
1 & 4
|
|
Kavita Joshi answered |
A Partnership arises from a contract, and therefore, such a contract is governed not only by the provisions of the Partnership Act in that regard, but also by the general law of contract in such matters, where the Partnership Act does not specifically make any provision. It has been expressly provided in the Partnership Act that unrepealed provisions of the Indian Contract Act, 1872, save in so far as they are inconsistent with the express provisions of this act, shall continue to apply. Thus, the rules relating to offer and acceptance, consideration, free consent, legality of object, etc, as contained in the Indian Contract Act are applicable to a contract of Partnership also. On the other hand , regarding the position of minor, since there is specific provision contained in Section 30 of the Indian Partnership Act, the minor’s position is governed by the provision of the Partnership Act.
A partner may retire from an existing firm- a)with consent of all partners
- b)as per express agreement
- c)by written notice in partnership at will
- d)all of the above.
Correct answer is option 'D'. Can you explain this answer?
A partner may retire from an existing firm
a)
with consent of all partners
b)
as per express agreement
c)
by written notice in partnership at will
d)
all of the above.
|
Jatin Mehta answered |
Explanation:
A partner may retire from an existing firm in several ways, including with the consent of all partners, as per an express agreement, or by giving written notice in a partnership at will. The correct answer is option 'D', which states that all of these options are valid ways for a partner to retire.
Consent of all partners:
One way a partner may retire from a partnership is with the consent of all partners. This means that all the partners in the firm agree to the retirement of the partner. This can be done through a formal agreement or by mutual understanding among the partners.
Express agreement:
A partner may also retire from a firm as per an express agreement. This means that there may be a specific clause or provision in the partnership agreement that outlines the process and conditions for a partner to retire. This agreement may include details such as the notice period, the distribution of assets, and any other relevant terms.
Written notice in partnership at will:
In a partnership at will, which is a partnership without a specific duration or fixed term, a partner may retire by giving written notice to the other partners. This written notice serves as a formal announcement of the partner's intention to retire and triggers the process for the partner's exit from the firm.
Summary:
In conclusion, a partner may retire from an existing firm with the consent of all partners, as per an express agreement, or by giving written notice in a partnership at will. All of these options are valid ways for a partner to retire, making option 'D' the correct answer.
A partner may retire from an existing firm in several ways, including with the consent of all partners, as per an express agreement, or by giving written notice in a partnership at will. The correct answer is option 'D', which states that all of these options are valid ways for a partner to retire.
Consent of all partners:
One way a partner may retire from a partnership is with the consent of all partners. This means that all the partners in the firm agree to the retirement of the partner. This can be done through a formal agreement or by mutual understanding among the partners.
Express agreement:
A partner may also retire from a firm as per an express agreement. This means that there may be a specific clause or provision in the partnership agreement that outlines the process and conditions for a partner to retire. This agreement may include details such as the notice period, the distribution of assets, and any other relevant terms.
Written notice in partnership at will:
In a partnership at will, which is a partnership without a specific duration or fixed term, a partner may retire by giving written notice to the other partners. This written notice serves as a formal announcement of the partner's intention to retire and triggers the process for the partner's exit from the firm.
Summary:
In conclusion, a partner may retire from an existing firm with the consent of all partners, as per an express agreement, or by giving written notice in a partnership at will. All of these options are valid ways for a partner to retire, making option 'D' the correct answer.
X and Y agree to work together as carpenters but X shall receive all profit and shall pay wages to Y. The relation between X and Y is that- a)Partners
- b)Carpenters
- c)Labourers
- d)Master-Servant
Correct answer is 'D'. Can you explain this answer?
X and Y agree to work together as carpenters but X shall receive all profit and shall pay wages to Y. The relation between X and Y is that
a)
Partners
b)
Carpenters
c)
Labourers
d)
Master-Servant
|
|
Palak Choudhary answered |
Explanation:
Master-Servant relationship is a type of employment relationship where one person, the master, employs another person, the servant, to carry out work for them. In this situation, X is the master and Y is the servant.
Heading: Definition of Master-Servant relationship
- The Master-Servant relationship is a type of employment relationship where one person, the master, employs another person, the servant, to carry out work for them.
Heading: Characteristics of Master-Servant relationship
- The master has the right to control the work of the servant
- The master is responsible for paying the servant's wages
- The servant is obligated to carry out the work assigned to them by the master
Heading: Application of Master-Servant relationship in the given scenario
- In the given scenario, X is the master as they have the right to control the work of Y, who is the servant.
- X is responsible for paying Y's wages, which is a characteristic of the Master-Servant relationship.
- Y is obligated to carry out the work assigned to them by X.
Conclusion:
In conclusion, the relationship between X and Y in the given scenario is that of a Master-Servant relationship. X is the master, and Y is the servant. The Master-Servant relationship is a type of employment relationship where the master has the right to control the work of the servant, is responsible for paying the servant's wages, and the servant is obligated to carry out the work assigned to them by the master.
Master-Servant relationship is a type of employment relationship where one person, the master, employs another person, the servant, to carry out work for them. In this situation, X is the master and Y is the servant.
Heading: Definition of Master-Servant relationship
- The Master-Servant relationship is a type of employment relationship where one person, the master, employs another person, the servant, to carry out work for them.
Heading: Characteristics of Master-Servant relationship
- The master has the right to control the work of the servant
- The master is responsible for paying the servant's wages
- The servant is obligated to carry out the work assigned to them by the master
Heading: Application of Master-Servant relationship in the given scenario
- In the given scenario, X is the master as they have the right to control the work of Y, who is the servant.
- X is responsible for paying Y's wages, which is a characteristic of the Master-Servant relationship.
- Y is obligated to carry out the work assigned to them by X.
Conclusion:
In conclusion, the relationship between X and Y in the given scenario is that of a Master-Servant relationship. X is the master, and Y is the servant. The Master-Servant relationship is a type of employment relationship where the master has the right to control the work of the servant, is responsible for paying the servant's wages, and the servant is obligated to carry out the work assigned to them by the master.
Under the Indian Partnership Act, 1932, partnership can be formed with - a)One Indian and two foreigners
- b)One major person and one person of unsound mind
- c)Two Convicts undergoing imprisonment
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Under the Indian Partnership Act, 1932, partnership can be formed with
a)
One Indian and two foreigners
b)
One major person and one person of unsound mind
c)
Two Convicts undergoing imprisonment
d)
None of the above
|
Aaryaan 46 answered |
Bkz all other answer is wrong ... bkz 2 convict never done partnership, one fine n one mental person's not in partnership act 1932
A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is a- a)Sleeping partner
- b)Sub Partner
- c)Dormant partner
- d)Partner by estoppel or Holding out
Correct answer is option 'D'. Can you explain this answer?
A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is a
a)
Sleeping partner
b)
Sub Partner
c)
Dormant partner
d)
Partner by estoppel or Holding out
|
Bhaskar Sharma answered |
Partner by Estoppel or Holding Out
When A introduced B to C as a partner in his firm, B did not deny this fact. This creates a situation of "holding out" or "estoppel." This means that B is held liable as a partner, even though he is not actually a partner, because he allowed A to hold him out as one.
Explanation
When a person is held out by a partner or a firm as a partner, they are considered a partner by estoppel. This means that they are held liable for the debts and obligations of the firm, even if they are not a partner in reality. This principle is based on the legal principle of estoppel, which prevents a person from denying or contradicting something they have previously said or done.
In this case, B did not deny being a partner when A introduced him to C. Therefore, C assumed that B was a partner and advanced a loan to A. When A failed to repay the loan, C held B liable for the repayment of the loan.
Conclusion
Partner by estoppel or holding out is a legal principle used to hold a person liable as a partner, even if they are not actually a partner. It is based on the principle of estoppel, which prevents a person from denying or contradicting something they have previously said or done. In this case, B allowed A to hold him out as a partner, and therefore, C held him liable for the repayment of the loan.
When A introduced B to C as a partner in his firm, B did not deny this fact. This creates a situation of "holding out" or "estoppel." This means that B is held liable as a partner, even though he is not actually a partner, because he allowed A to hold him out as one.
Explanation
When a person is held out by a partner or a firm as a partner, they are considered a partner by estoppel. This means that they are held liable for the debts and obligations of the firm, even if they are not a partner in reality. This principle is based on the legal principle of estoppel, which prevents a person from denying or contradicting something they have previously said or done.
In this case, B did not deny being a partner when A introduced him to C. Therefore, C assumed that B was a partner and advanced a loan to A. When A failed to repay the loan, C held B liable for the repayment of the loan.
Conclusion
Partner by estoppel or holding out is a legal principle used to hold a person liable as a partner, even if they are not actually a partner. It is based on the principle of estoppel, which prevents a person from denying or contradicting something they have previously said or done. In this case, B allowed A to hold him out as a partner, and therefore, C held him liable for the repayment of the loan.
Partnership Deed signifies: - a)Agreement between the parties
- b)Application to Registrar
- c)Certificate of Registered Partnership
- d)All of the above
Correct answer is option 'A'. Can you explain this answer?
Partnership Deed signifies:
a)
Agreement between the parties
b)
Application to Registrar
c)
Certificate of Registered Partnership
d)
All of the above
|
|
Jayant Mishra answered |
A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation. It is helpful in preventing disputes and disagreements over the role of each partner in the business and the benefits which are due to them.
Can you explain the answer of this question below:Which of the following is not a kind of partner:
- A:
Dormant partner
- B:
Partners in losses only
- C:
Partner by estoppel
- D:
Nominal partner
The answer is b.
Which of the following is not a kind of partner:
Dormant partner
Partners in losses only
Partner by estoppel
Nominal partner
|
|
Arjun Singhania answered |
1. Active or managing partner:
A person who takes active interest in the conduct and management of the business of the firm is known as active or managing partner.
2. Sleeping or dormant partner:
A sleeping partner is a partner who ‘sleeps’, that is, he does not take active part in the management of the business. Such a partner only contributes to the share capital of the firm, is bound by the activities of other partners, and shares the profits and losses of the business.
3. Nominal or ostensible partner:
A nominal partner is one who does not have any real interest in the business but lends his name to the firm, without any capital contributions, and doesn’t share the profits of the business.
4. Partner by estoppel or holding out:
If a person, by his words or conduct, holds out to another that he is a partner, he will be stopped from denying that he is not a partner. The person who thus becomes liable to third parties to pay the debts of the firm is known as a holding out partner.
5. Partner in profits only:
When a partner agrees with the others that he would only share the profits of the firm and would not be liable for its losses, he is in own as partner in profits only.
6. Minor as a partner:
A partnership is created by an agreement. And if a partner is incapable of entering into a contract, he cannot become a partner. Thus, at the time of creation of a firm a minor (i.e., a person who has not attained the age of 18 years) cannot be one of the parties to the contract. But under section 30 of the Indian Partnership Act, 1932, a minor ‘can be admitted to the benefits of partnership’, with the consent of all partners. A minor partner is entitled to his share of profits and to have access to the accounts of the firm for purposes of inspection and copy.
Which of the following statements, about the registration of firm, is not true:- a)It must be done at the time of its formation.
- b)It may be done at the time of formation.
- c)It may be done before filing a suit against third party.
- d)It may be done at any time after its formation.
Correct answer is option 'A'. Can you explain this answer?
Which of the following statements, about the registration of firm, is not true:
a)
It must be done at the time of its formation.
b)
It may be done at the time of formation.
c)
It may be done before filing a suit against third party.
d)
It may be done at any time after its formation.
|
Freedom Institute answered |
Statement: Which of the following statements, about the registration of firm, is not true:
A: It must be done at the time of its formation.
B: It may be done at the time of formation.
C: It may be done before filing a suit against third party.
D: It may be done at any time after its formation.
Answer: A.
Explanation:
The registration of a firm refers to the process of legally establishing the firm as a separate legal entity. Here, we need to identify the statement that is not true.
A: It must be done at the time of its formation. (Not True)
This statement is not true because the registration of a firm is not mandatory at the time of its formation. It can be done at a later stage as well.
B: It may be done at the time of formation. (True)
This statement is true. The registration of a firm can be done at the time of its formation.
C: It may be done before filing a suit against a third party. (True)
This statement is true. The registration of a firm can be done before filing a suit against a third party.
D: It may be done at any time after its formation. (True)
This statement is true. The registration of a firm can be done at any time after its formation.
Therefore, the statement that is not true is A: It must be done at the time of its formation.
A new partner can be admitted in the firm with the consent of- a)All the partners
- b)Simple majority of partners
- c)Special majority of partners
- d)New partner only.
Correct answer is option 'A'. Can you explain this answer?
A new partner can be admitted in the firm with the consent of
a)
All the partners
b)
Simple majority of partners
c)
Special majority of partners
d)
New partner only.
|
|
Muskaan Tiwari answered |
To admit a new partner in a firm, the consent of all the existing partners is required. Let's understand the rationale behind this answer in detail:
Definition of Partnership:
A partnership is a type of business organization where two or more individuals come together to carry on a business with the aim of making a profit. The partners in a partnership share the responsibility of managing the business and the profits or losses generated.
Consent of All Partners:
When a new partner wants to join an existing partnership, it is crucial to obtain the consent of all the existing partners. This requirement is based on the principle of mutual agency, which states that each partner is an agent of the firm and other partners. Therefore, any changes to the partnership, such as admitting a new partner, should be agreed upon by all partners.
Reasons for Unanimous Consent:
1. Mutual Trust and Agreement: Partnership is built on mutual trust and agreement among partners. Admitting a new partner can have significant implications for the partnership, including sharing of profits, decision-making, and liability. Therefore, the consent of all partners ensures that everyone is on the same page and agrees to the terms of admitting a new partner.
2. Equal Distribution of Power and Responsibility: All partners have equal rights and responsibilities in a partnership. By requiring the consent of all partners, it ensures that each partner has a say in the decision to admit a new partner. This helps maintain the balance of power within the partnership and ensures that the interests of all partners are protected.
3. Protection against Disputes: Requiring the consent of all partners minimizes the chances of disputes arising in the future. If a new partner is admitted without the unanimous consent of all partners, it can lead to conflicts and disagreements. By obtaining the consent of all partners, the firm can avoid potential disputes and maintain a harmonious working relationship.
Conclusion:
In conclusion, the consent of all partners is necessary to admit a new partner in a firm. This requirement ensures mutual trust, equal distribution of power and responsibility, and protection against disputes. By obtaining unanimous consent, the firm can effectively manage the admission of a new partner and maintain a healthy partnership.
Definition of Partnership:
A partnership is a type of business organization where two or more individuals come together to carry on a business with the aim of making a profit. The partners in a partnership share the responsibility of managing the business and the profits or losses generated.
Consent of All Partners:
When a new partner wants to join an existing partnership, it is crucial to obtain the consent of all the existing partners. This requirement is based on the principle of mutual agency, which states that each partner is an agent of the firm and other partners. Therefore, any changes to the partnership, such as admitting a new partner, should be agreed upon by all partners.
Reasons for Unanimous Consent:
1. Mutual Trust and Agreement: Partnership is built on mutual trust and agreement among partners. Admitting a new partner can have significant implications for the partnership, including sharing of profits, decision-making, and liability. Therefore, the consent of all partners ensures that everyone is on the same page and agrees to the terms of admitting a new partner.
2. Equal Distribution of Power and Responsibility: All partners have equal rights and responsibilities in a partnership. By requiring the consent of all partners, it ensures that each partner has a say in the decision to admit a new partner. This helps maintain the balance of power within the partnership and ensures that the interests of all partners are protected.
3. Protection against Disputes: Requiring the consent of all partners minimizes the chances of disputes arising in the future. If a new partner is admitted without the unanimous consent of all partners, it can lead to conflicts and disagreements. By obtaining the consent of all partners, the firm can avoid potential disputes and maintain a harmonious working relationship.
Conclusion:
In conclusion, the consent of all partners is necessary to admit a new partner in a firm. This requirement ensures mutual trust, equal distribution of power and responsibility, and protection against disputes. By obtaining unanimous consent, the firm can effectively manage the admission of a new partner and maintain a healthy partnership.
Which of these statements is not true with respect to a Joint Hindu Family Business?- a)It can have female members
- b)A Joint Hindu Family firm arises on the basis of status i.e. Birth or by operation of law
- c)Death of a coparcener does not dissolve the Joint Hindu Family firm
- d)Coparcener is liable only to the extent of his share in the family property
Correct answer is option 'A'. Can you explain this answer?
Which of these statements is not true with respect to a Joint Hindu Family Business?
a)
It can have female members
b)
A Joint Hindu Family firm arises on the basis of status i.e. Birth or by operation of law
c)
Death of a coparcener does not dissolve the Joint Hindu Family firm
d)
Coparcener is liable only to the extent of his share in the family property
|
|
Arjun Singhania answered |
Joint Hindu Family Business is a different type of organization, which is found only in India. As the name suggests, it is type of organization in which all the members of Hindu Undivided Family manage and control the business with the direction of head of the family. It is not a Partnership.
On which of the following grounds, a partner may apply to the court for dissolution of the firm?- a)Insanity of a partner
- b)Misconduct of a partner
- c)Perpetual losses in business
- d)All of the above.
Correct answer is option 'D'. Can you explain this answer?
On which of the following grounds, a partner may apply to the court for dissolution of the firm?
a)
Insanity of a partner
b)
Misconduct of a partner
c)
Perpetual losses in business
d)
All of the above.
|
Kalyan Ghoshal answered |
Dissolution of a partnership firm refers to the termination of the partnership agreement. There are several grounds on which a partner may apply to the court for the dissolution of the firm. These grounds are as follows:
a) Insanity of a partner:
If a partner becomes mentally unfit or insane, it can significantly impact the functioning and operations of the firm. In such cases, the other partners may apply to the court for dissolution of the firm to protect their interests and ensure the smooth continuation of business operations.
b) Misconduct of a partner:
If a partner engages in misconduct or behaves in a manner that is detrimental to the interests of the firm, other partners may seek dissolution of the partnership. Misconduct can include fraudulent activities, breach of trust, dishonesty, or any other behavior that violates the partnership agreement and affects the partnership's reputation and business operations.
c) Perpetual losses in business:
If the partnership firm consistently incurs losses and is unable to generate profits, partners may consider dissolving the firm. When the financial viability of the business is at stake, partners may decide to terminate the partnership to prevent further financial losses and explore other opportunities.
d) All of the above:
All the grounds mentioned above are valid reasons for partners to apply to the court for the dissolution of the firm. Each ground represents a significant disruption or threat to the partnership's operations, financial stability, reputation, or legal compliance.
In conclusion, partners may apply to the court for the dissolution of the firm on various grounds such as the insanity of a partner, misconduct of a partner, or perpetual losses in business. These grounds allow partners to protect their interests, maintain the integrity of the firm, and ensure the continuity of their business operations.
a) Insanity of a partner:
If a partner becomes mentally unfit or insane, it can significantly impact the functioning and operations of the firm. In such cases, the other partners may apply to the court for dissolution of the firm to protect their interests and ensure the smooth continuation of business operations.
b) Misconduct of a partner:
If a partner engages in misconduct or behaves in a manner that is detrimental to the interests of the firm, other partners may seek dissolution of the partnership. Misconduct can include fraudulent activities, breach of trust, dishonesty, or any other behavior that violates the partnership agreement and affects the partnership's reputation and business operations.
c) Perpetual losses in business:
If the partnership firm consistently incurs losses and is unable to generate profits, partners may consider dissolving the firm. When the financial viability of the business is at stake, partners may decide to terminate the partnership to prevent further financial losses and explore other opportunities.
d) All of the above:
All the grounds mentioned above are valid reasons for partners to apply to the court for the dissolution of the firm. Each ground represents a significant disruption or threat to the partnership's operations, financial stability, reputation, or legal compliance.
In conclusion, partners may apply to the court for the dissolution of the firm on various grounds such as the insanity of a partner, misconduct of a partner, or perpetual losses in business. These grounds allow partners to protect their interests, maintain the integrity of the firm, and ensure the continuity of their business operations.
A partnership firm is compulsorily dissolved where- a)All partners have become insolvent
- b)Firm’s business has become unlawful
- c)The fixed term has expired
- d)In cases (a) and (b) only.
Correct answer is option 'D'. Can you explain this answer?
A partnership firm is compulsorily dissolved where
a)
All partners have become insolvent
b)
Firm’s business has become unlawful
c)
The fixed term has expired
d)
In cases (a) and (b) only.
|
|
Snehal Das answered |
Partnership Firm Dissolution
In a partnership firm, there are various reasons that can lead to its compulsory dissolution. Let's discuss the reasons mentioned in the question in detail:
All partners have become insolvent:
- If all partners of a firm become insolvent, it means they are unable to pay off their debts. This situation can greatly affect the firm's ability to carry on its business operations effectively. In such a scenario, the firm may be compulsorily dissolved to protect the interests of creditors and other stakeholders.
Firm's business has become unlawful:
- If the nature of the firm's business activities becomes unlawful due to changes in regulations or laws, it can lead to the compulsory dissolution of the firm. Operating an illegal business can have serious legal consequences, and the firm may be required to dissolve to avoid further legal issues.
Fixed term has expired:
- In some cases, partnership firms are established for a specific period of time. Once the fixed term of the partnership agreement expires, the firm is automatically dissolved. This is a common scenario where the partnership is formed for a specific project or purpose with a predetermined end date.
Therefore, based on the reasons mentioned in the question, a partnership firm is compulsorily dissolved in cases where all partners have become insolvent and the firm's business has become unlawful. These situations can significantly impact the firm's ability to operate ethically and sustainably, leading to its compulsory dissolution.
In a partnership firm, there are various reasons that can lead to its compulsory dissolution. Let's discuss the reasons mentioned in the question in detail:
All partners have become insolvent:
- If all partners of a firm become insolvent, it means they are unable to pay off their debts. This situation can greatly affect the firm's ability to carry on its business operations effectively. In such a scenario, the firm may be compulsorily dissolved to protect the interests of creditors and other stakeholders.
Firm's business has become unlawful:
- If the nature of the firm's business activities becomes unlawful due to changes in regulations or laws, it can lead to the compulsory dissolution of the firm. Operating an illegal business can have serious legal consequences, and the firm may be required to dissolve to avoid further legal issues.
Fixed term has expired:
- In some cases, partnership firms are established for a specific period of time. Once the fixed term of the partnership agreement expires, the firm is automatically dissolved. This is a common scenario where the partnership is formed for a specific project or purpose with a predetermined end date.
Therefore, based on the reasons mentioned in the question, a partnership firm is compulsorily dissolved in cases where all partners have become insolvent and the firm's business has become unlawful. These situations can significantly impact the firm's ability to operate ethically and sustainably, leading to its compulsory dissolution.
A and B purchased a second hand car, get it renovated for selling and shared the proceeds equally. They are: - a)Partners
- b)Co-ventures
- c)Joint owner
- d)None
Correct answer is option 'C'. Can you explain this answer?
A and B purchased a second hand car, get it renovated for selling and shared the proceeds equally. They are:
a)
Partners
b)
Co-ventures
c)
Joint owner
d)
None
|
|
Vaishnavi Joshi answered |
Joint Ownership in Second Hand Car Business
In the given scenario, A and B purchased a second hand car, got it renovated for selling and shared the proceeds equally. Let's understand the nature of their business relationship.
Definition of Joint Ownership
Joint ownership is a situation where two or more people own a property or an asset together. In this case, each owner has a share in the property, which may or may not be equal. Joint ownership is often created by a contract or agreement between the parties involved.
Explanation of the Answer
In the given scenario, A and B purchased a second hand car together, which means they jointly own the car. They then got the car renovated for selling and shared the proceeds equally. This indicates that they are sharing the profits of the business equally, which is a characteristic of joint ownership.
Partnerships and Co-ventures
Partnerships and co-ventures are other types of business relationships, but they have different characteristics than joint ownership. In a partnership, two or more people own a business together and share the profits and losses of the business based on their agreed upon percentage ownership. In a co-venture, two or more parties collaborate on a specific project or venture, but they do not necessarily own the assets or property together.
Conclusion
In conclusion, A and B have a joint ownership relationship in their second hand car business. They jointly own the car and share the profits equally. It is important to understand the nature of the business relationship in order to determine the legal and financial responsibilities and obligations of the parties involved.
In the given scenario, A and B purchased a second hand car, got it renovated for selling and shared the proceeds equally. Let's understand the nature of their business relationship.
Definition of Joint Ownership
Joint ownership is a situation where two or more people own a property or an asset together. In this case, each owner has a share in the property, which may or may not be equal. Joint ownership is often created by a contract or agreement between the parties involved.
Explanation of the Answer
In the given scenario, A and B purchased a second hand car together, which means they jointly own the car. They then got the car renovated for selling and shared the proceeds equally. This indicates that they are sharing the profits of the business equally, which is a characteristic of joint ownership.
Partnerships and Co-ventures
Partnerships and co-ventures are other types of business relationships, but they have different characteristics than joint ownership. In a partnership, two or more people own a business together and share the profits and losses of the business based on their agreed upon percentage ownership. In a co-venture, two or more parties collaborate on a specific project or venture, but they do not necessarily own the assets or property together.
Conclusion
In conclusion, A and B have a joint ownership relationship in their second hand car business. They jointly own the car and share the profits equally. It is important to understand the nature of the business relationship in order to determine the legal and financial responsibilities and obligations of the parties involved.
A partnership at will is one1 . Duration not fixed2 . Duration fixed3 . Dissolved at any time4 . Can be dissolved only on the happening of an event- a)1 & 2
- b)2 & 3
- c)3 & 4
- d)1 & 3
Correct answer is option 'D'. Can you explain this answer?
A partnership at will is one
1 . Duration not fixed
2 . Duration fixed
3 . Dissolved at any time
4 . Can be dissolved only on the happening of an event
a)
1 & 2
b)
2 & 3
c)
3 & 4
d)
1 & 3
|
Sai Kulkarni answered |
The correct answer is option 'D', which states that a partnership at will can be dissolved only on the happening of an event. Let's discuss each option and understand why option 'D' is the correct answer.
1. Duration not fixed: This option is not correct because a partnership at will does not have a fixed duration. It means that there is no predetermined time period for the partnership to exist. It can continue as long as the partners wish to work together or until it is dissolved.
2. Duration fixed: This option is not correct because a partnership at will does not have a fixed duration. As mentioned earlier, it can continue for as long as the partners want to work together.
3. Dissolved at any time: This option is partially correct. A partnership at will can be dissolved at any time by any partner without giving any prior notice or reason. However, it is not the only way a partnership at will can be dissolved.
4. Can be dissolved only on the happening of an event: This option is the correct answer. A partnership at will can be dissolved when a specific event occurs, such as the death or withdrawal of a partner. In this case, the partnership will be automatically dissolved. However, it is important to note that the partnership can also be dissolved by any partner at any time, as mentioned in option 3. So, while option 3 is true, option 4 provides a more comprehensive answer by including both the event-based dissolution and the ability of any partner to dissolve the partnership.
In conclusion, a partnership at will is a type of partnership where the duration is not fixed, and it can be dissolved at any time by any partner or on the happening of an event. Therefore, option 'D' is the correct answer as it includes both the event-based dissolution and the partner's ability to dissolve the partnership.
1. Duration not fixed: This option is not correct because a partnership at will does not have a fixed duration. It means that there is no predetermined time period for the partnership to exist. It can continue as long as the partners wish to work together or until it is dissolved.
2. Duration fixed: This option is not correct because a partnership at will does not have a fixed duration. As mentioned earlier, it can continue for as long as the partners want to work together.
3. Dissolved at any time: This option is partially correct. A partnership at will can be dissolved at any time by any partner without giving any prior notice or reason. However, it is not the only way a partnership at will can be dissolved.
4. Can be dissolved only on the happening of an event: This option is the correct answer. A partnership at will can be dissolved when a specific event occurs, such as the death or withdrawal of a partner. In this case, the partnership will be automatically dissolved. However, it is important to note that the partnership can also be dissolved by any partner at any time, as mentioned in option 3. So, while option 3 is true, option 4 provides a more comprehensive answer by including both the event-based dissolution and the ability of any partner to dissolve the partnership.
In conclusion, a partnership at will is a type of partnership where the duration is not fixed, and it can be dissolved at any time by any partner or on the happening of an event. Therefore, option 'D' is the correct answer as it includes both the event-based dissolution and the partner's ability to dissolve the partnership.
The partnership firm having banking business becomes an illegal association when the number of partners in the firm Exceeds ______.- a)Ten
- b)Twenty
- c)Fifty
- d)Thousand.
Correct answer is option 'A'. Can you explain this answer?
The partnership firm having banking business becomes an illegal association when the number of partners in the firm Exceeds ______.
a)
Ten
b)
Twenty
c)
Fifty
d)
Thousand.
|
|
Deepika Nambiar answered |
**Explanation:**
In a partnership firm, the number of partners is governed by the Partnership Act, 1932. According to Section 11 of the Partnership Act, a partnership firm having banking business becomes an illegal association when the number of partners exceeds ten.
**Reasoning:**
1. **Partnership Act, 1932:** The Partnership Act, 1932 is the governing law for partnership firms in India. It provides rules and regulations regarding the formation, operation, and dissolution of partnership firms.
2. **Definition of Partnership:** According to Section 4 of the Partnership Act, a partnership is defined as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
3. **Formation of Partnership:** A partnership can be formed with a minimum of two partners and a maximum of twenty partners in the case of a general partnership. In the case of a banking business, the maximum number of partners allowed is ten.
4. **Banking Business:** Banking business refers to the business of accepting deposits of money, lending money, and providing other financial services like issuing credit cards, loans, etc.
5. **Illegal Association:** If the number of partners in a partnership firm exceeds the maximum limit allowed by law, the partnership becomes an illegal association.
6. **Consequences:** When a partnership firm becomes an illegal association, it loses its legal status and is not recognized by law. It cannot enforce its rights, and its contracts become void.
7. **Option A - Ten:** According to the Partnership Act, a partnership firm with banking business becomes an illegal association when the number of partners exceeds ten. Therefore, option A is the correct answer.
**Summary:**
A partnership firm having banking business becomes an illegal association when the number of partners in the firm exceeds ten. This is in accordance with the provisions of the Partnership Act, 1932. It is important for partnership firms to comply with the maximum limit of partners allowed by law to maintain their legal status and enforce their rights.
In a partnership firm, the number of partners is governed by the Partnership Act, 1932. According to Section 11 of the Partnership Act, a partnership firm having banking business becomes an illegal association when the number of partners exceeds ten.
**Reasoning:**
1. **Partnership Act, 1932:** The Partnership Act, 1932 is the governing law for partnership firms in India. It provides rules and regulations regarding the formation, operation, and dissolution of partnership firms.
2. **Definition of Partnership:** According to Section 4 of the Partnership Act, a partnership is defined as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
3. **Formation of Partnership:** A partnership can be formed with a minimum of two partners and a maximum of twenty partners in the case of a general partnership. In the case of a banking business, the maximum number of partners allowed is ten.
4. **Banking Business:** Banking business refers to the business of accepting deposits of money, lending money, and providing other financial services like issuing credit cards, loans, etc.
5. **Illegal Association:** If the number of partners in a partnership firm exceeds the maximum limit allowed by law, the partnership becomes an illegal association.
6. **Consequences:** When a partnership firm becomes an illegal association, it loses its legal status and is not recognized by law. It cannot enforce its rights, and its contracts become void.
7. **Option A - Ten:** According to the Partnership Act, a partnership firm with banking business becomes an illegal association when the number of partners exceeds ten. Therefore, option A is the correct answer.
**Summary:**
A partnership firm having banking business becomes an illegal association when the number of partners in the firm exceeds ten. This is in accordance with the provisions of the Partnership Act, 1932. It is important for partnership firms to comply with the maximum limit of partners allowed by law to maintain their legal status and enforce their rights.
Which of the following statements is not true about minor’s position as a partner?- a)He cannot become a full-fledged partner in a new firm
- b)He can become a full-fledged partner in an existing firm
- c)He can be admitted only to the benefits of any existing firm.
- d)He can become partner on becoming a major.
Correct answer is option 'B'. Can you explain this answer?
Which of the following statements is not true about minor’s position as a partner?
a)
He cannot become a full-fledged partner in a new firm
b)
He can become a full-fledged partner in an existing firm
c)
He can be admitted only to the benefits of any existing firm.
d)
He can become partner on becoming a major.
|
Srsps answered |
Explanation:
The correct answer is B: He can become a full-fledged partner in an existing firm.
Reason:
Here are the explanations for each statement:
A: He cannot become a full-fledged partner in a new firm
- This statement is true. A minor cannot become a full-fledged partner in a new firm because they are not of legal age to enter into a legally binding partnership agreement.
B: He can become a full-fledged partner in an existing firm
- This statement is not true. A minor cannot become a full-fledged partner in an existing firm because they are not of legal age to enter into a legally binding partnership agreement.
C: He can be admitted only to the benefits of any existing firm.
- This statement is true. A minor can be admitted to the benefits of an existing firm, which means they can receive a share of the profits or benefits from the partnership but they cannot be held personally liable for the firm's debts.
D: He can become a partner on becoming a major.
- This statement is true. Once a minor becomes a major (reaches the legal age of majority), they can become a full-fledged partner in a firm.
Therefore, the correct answer is B: He can become a full-fledged partner in an existing firm.
The correct answer is B: He can become a full-fledged partner in an existing firm.
Reason:
Here are the explanations for each statement:
A: He cannot become a full-fledged partner in a new firm
- This statement is true. A minor cannot become a full-fledged partner in a new firm because they are not of legal age to enter into a legally binding partnership agreement.
B: He can become a full-fledged partner in an existing firm
- This statement is not true. A minor cannot become a full-fledged partner in an existing firm because they are not of legal age to enter into a legally binding partnership agreement.
C: He can be admitted only to the benefits of any existing firm.
- This statement is true. A minor can be admitted to the benefits of an existing firm, which means they can receive a share of the profits or benefits from the partnership but they cannot be held personally liable for the firm's debts.
D: He can become a partner on becoming a major.
- This statement is true. Once a minor becomes a major (reaches the legal age of majority), they can become a full-fledged partner in a firm.
Therefore, the correct answer is B: He can become a full-fledged partner in an existing firm.
X and Y formed a partnership firm to undertake construction of a Terminal for Northern Railway at Pune. This partnership is a:- a)Limited Partnership
- b)Partnership at Will
- c)Particular Partnership
- d)Joint venture
Correct answer is option 'C'. Can you explain this answer?
X and Y formed a partnership firm to undertake construction of a Terminal for Northern Railway at Pune. This partnership is a:
a)
Limited Partnership
b)
Partnership at Will
c)
Particular Partnership
d)
Joint venture
|
Anuj Toshniwal answered |
In the above case X and Y undertake a particular project of railway and partnership done for a particular project is called particular partnership.
X and Y purchase 10,000 bags of cement, which they agree to sell for their joint account.The relation between X and Y is- a)X and Y are partners
- b)X and Y are only joint owners
- c)X and Y are co-ventures
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
X and Y purchase 10,000 bags of cement, which they agree to sell for their joint account.The relation between X and Y is
a)
X and Y are partners
b)
X and Y are only joint owners
c)
X and Y are co-ventures
d)
None of the above
|
|
Shivam Chawla answered |
The correct answer is option 'A', X and Y are partners. Let's understand why this is the case.
Partnership Definition:
A partnership is a legal relationship between two or more individuals who agree to carry on a business together and share its profits and losses.
Explanation:
In this scenario, X and Y have jointly purchased 10,000 bags of cement to sell for their joint account. This indicates that they have entered into a business venture together, where they both have an ownership interest in the cement bags and will share the profits and losses from the sales.
Here are the reasons why X and Y are partners:
1. Joint Ownership: X and Y have jointly purchased the cement bags, which means they both have a shared ownership interest in the inventory. This joint ownership establishes a partnership.
2. Agreement to Sell for Joint Account: X and Y have agreed to sell the cement bags for their joint account. This implies that they have mutually decided to conduct business together and share the results of the sales.
3. Profit and Loss Sharing: As partners, X and Y will share the profits and losses from the sales of the cement bags. This is a characteristic feature of a partnership, where the partners distribute the financial outcomes of the business venture.
4. Absence of Co-venture: Co-venture refers to a temporary collaboration between two or more parties for a specific project or purpose. In this scenario, there is no indication that X and Y are collaborating on a specific project or purpose. Instead, they have jointly purchased the cement bags for their joint account, suggesting a more ongoing and continuous business relationship.
Therefore, based on the given information, we can conclude that X and Y are partners in a business venture. They have a shared ownership interest, an agreement to sell for their joint account, and will share the profits and losses from the sales.
Partnership Definition:
A partnership is a legal relationship between two or more individuals who agree to carry on a business together and share its profits and losses.
Explanation:
In this scenario, X and Y have jointly purchased 10,000 bags of cement to sell for their joint account. This indicates that they have entered into a business venture together, where they both have an ownership interest in the cement bags and will share the profits and losses from the sales.
Here are the reasons why X and Y are partners:
1. Joint Ownership: X and Y have jointly purchased the cement bags, which means they both have a shared ownership interest in the inventory. This joint ownership establishes a partnership.
2. Agreement to Sell for Joint Account: X and Y have agreed to sell the cement bags for their joint account. This implies that they have mutually decided to conduct business together and share the results of the sales.
3. Profit and Loss Sharing: As partners, X and Y will share the profits and losses from the sales of the cement bags. This is a characteristic feature of a partnership, where the partners distribute the financial outcomes of the business venture.
4. Absence of Co-venture: Co-venture refers to a temporary collaboration between two or more parties for a specific project or purpose. In this scenario, there is no indication that X and Y are collaborating on a specific project or purpose. Instead, they have jointly purchased the cement bags for their joint account, suggesting a more ongoing and continuous business relationship.
Therefore, based on the given information, we can conclude that X and Y are partners in a business venture. They have a shared ownership interest, an agreement to sell for their joint account, and will share the profits and losses from the sales.
X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that of- a)Partnership
- b)Association of goldsmith
- c)Contract for labour work
- d)Contract of Sale
Correct answer is option 'A'. Can you explain this answer?
X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that of
a)
Partnership
b)
Association of goldsmith
c)
Contract for labour work
d)
Contract of Sale
|
|
Pallabi Khanna answered |
Contract Between X and Y is Partnership
The given scenario is an example of a partnership agreement between X and Y. Let's understand why it is a partnership agreement.
Definition of Partnership
Partnership is an agreement between two or more persons who agree to carry on a business venture together with the aim of earning profits. The persons who enter into the partnership agreement are known as partners.
Characteristics of Partnership
The following are the characteristics of a partnership agreement:
- Two or more persons are required to form a partnership.
- There must be an agreement between the partners.
- The aim of the partnership is to earn profits.
- The profits and losses are shared among the partners.
- The liability of the partners is unlimited.
- The partnership is dissolved on the death or insolvency of a partner.
Analysis of the Scenario
In the given scenario, X and Y have entered into an agreement to carry on a business venture together. X has agreed to furnish gold to Y, who is a goldsmith, to be worked up by him and sold. The profits and losses resulting from the sale of gold will be shared between X and Y.
Therefore, the given scenario fulfills all the characteristics of a partnership agreement:
- X and Y have agreed to carry on a business venture together.
- The aim of the partnership is to earn profits.
- The profits and losses resulting from the sale of gold will be shared between X and Y.
- The liability of the partners is unlimited.
Conclusion
Hence, it can be concluded that the contract between X and Y is a partnership agreement. In a partnership agreement, the partners share the risks and rewards of the business venture. It is important for the partners to have a clear understanding of their roles and responsibilities, as well as the terms and conditions of the partnership agreement.
The given scenario is an example of a partnership agreement between X and Y. Let's understand why it is a partnership agreement.
Definition of Partnership
Partnership is an agreement between two or more persons who agree to carry on a business venture together with the aim of earning profits. The persons who enter into the partnership agreement are known as partners.
Characteristics of Partnership
The following are the characteristics of a partnership agreement:
- Two or more persons are required to form a partnership.
- There must be an agreement between the partners.
- The aim of the partnership is to earn profits.
- The profits and losses are shared among the partners.
- The liability of the partners is unlimited.
- The partnership is dissolved on the death or insolvency of a partner.
Analysis of the Scenario
In the given scenario, X and Y have entered into an agreement to carry on a business venture together. X has agreed to furnish gold to Y, who is a goldsmith, to be worked up by him and sold. The profits and losses resulting from the sale of gold will be shared between X and Y.
Therefore, the given scenario fulfills all the characteristics of a partnership agreement:
- X and Y have agreed to carry on a business venture together.
- The aim of the partnership is to earn profits.
- The profits and losses resulting from the sale of gold will be shared between X and Y.
- The liability of the partners is unlimited.
Conclusion
Hence, it can be concluded that the contract between X and Y is a partnership agreement. In a partnership agreement, the partners share the risks and rewards of the business venture. It is important for the partners to have a clear understanding of their roles and responsibilities, as well as the terms and conditions of the partnership agreement.
Death of partner has the effect of____________- a)Dissolving the firm
- b)Result in continuance of the business of the firm
- c)His heirs joining the firm
- d)Computation of profits upto the date of death
Correct answer is 'D'. Can you explain this answer?
Death of partner has the effect of____________
a)
Dissolving the firm
b)
Result in continuance of the business of the firm
c)
His heirs joining the firm
d)
Computation of profits upto the date of death
|
Aman Chaudhary answered |
Effect of Death of Partner in a Firm
When a partner of a firm dies, it has certain effects on the firm. These effects are as follows:
Continuance of the Business
- The death of a partner does not dissolve the firm, and the business of the firm continues.
- The remaining partners continue the business according to the terms and conditions of the partnership agreement.
- If there is no partnership agreement, the business continues as per the provisions of the Partnership Act, 1932.
Computation of Profits
- The profits of the firm are calculated up to the date of death of the partner.
- The deceased partner's share of the profits up to the date of death is calculated and paid to his or her legal heirs.
Admission of Heirs
- The legal heirs of the deceased partner may be admitted as partners in the firm with the consent of all the existing partners.
- This may require the reconstitution of the firm and amendment of the partnership agreement.
Conclusion
In conclusion, the death of a partner in a firm does not automatically dissolve the firm, and the business continues. The profits are calculated up to the date of death, and the legal heirs may be admitted as partners with the consent of all existing partners.
When a partner of a firm dies, it has certain effects on the firm. These effects are as follows:
Continuance of the Business
- The death of a partner does not dissolve the firm, and the business of the firm continues.
- The remaining partners continue the business according to the terms and conditions of the partnership agreement.
- If there is no partnership agreement, the business continues as per the provisions of the Partnership Act, 1932.
Computation of Profits
- The profits of the firm are calculated up to the date of death of the partner.
- The deceased partner's share of the profits up to the date of death is calculated and paid to his or her legal heirs.
Admission of Heirs
- The legal heirs of the deceased partner may be admitted as partners in the firm with the consent of all the existing partners.
- This may require the reconstitution of the firm and amendment of the partnership agreement.
Conclusion
In conclusion, the death of a partner in a firm does not automatically dissolve the firm, and the business continues. The profits are calculated up to the date of death, and the legal heirs may be admitted as partners with the consent of all existing partners.
A firm is the name of:- a)The Partners
- b)The minors in the firm.
- c)The business under which the firm carries on business
- d)The collective name under which it caries on business.
Correct answer is option 'D'. Can you explain this answer?
A firm is the name of:
a)
The Partners
b)
The minors in the firm.
c)
The business under which the firm carries on business
d)
The collective name under which it caries on business.
|
|
Snehal Das answered |
Explanation:
Collective Name of Business
A firm is a collective name under which a business carries on its operations. It is a legal entity that carries out business activities under a specific name. It can be a partnership firm, a limited liability partnership firm, or a company.
Different from Partners
A firm is different from its partners. The partners are individuals who own and run the business, whereas the firm is the entity that carries out the business activities. The partners may change, but the firm remains the same.
Legal Entity
A firm is a legal entity that is recognized by the law. It has its own identity, distinct from its partners. It can own property, enter into contracts, and sue or be sued in its own name.
Liability
The liability of the firm is separate from the liability of its partners. In a partnership firm, the partners have unlimited liability, which means that they are personally liable for the debts of the firm. In a limited liability partnership firm, the liability of the partners is limited to the extent of their capital contribution.
Conclusion
In summary, a firm is the collective name under which a business carries on its operations. It is a legal entity that is separate from its partners and has its own identity. The liability of the firm is separate from the liability of its partners.
Collective Name of Business
A firm is a collective name under which a business carries on its operations. It is a legal entity that carries out business activities under a specific name. It can be a partnership firm, a limited liability partnership firm, or a company.
Different from Partners
A firm is different from its partners. The partners are individuals who own and run the business, whereas the firm is the entity that carries out the business activities. The partners may change, but the firm remains the same.
Legal Entity
A firm is a legal entity that is recognized by the law. It has its own identity, distinct from its partners. It can own property, enter into contracts, and sue or be sued in its own name.
Liability
The liability of the firm is separate from the liability of its partners. In a partnership firm, the partners have unlimited liability, which means that they are personally liable for the debts of the firm. In a limited liability partnership firm, the liability of the partners is limited to the extent of their capital contribution.
Conclusion
In summary, a firm is the collective name under which a business carries on its operations. It is a legal entity that is separate from its partners and has its own identity. The liability of the firm is separate from the liability of its partners.
A partnership firm having a banking business is a valid partnership when the number of partners exceeds: - a)5 but does not exceed 10
- b)10 But does not exceed 20
- c)20 but does not exceed 50
- d)20 but does not exceed 40
Correct answer is option 'A'. Can you explain this answer?
A partnership firm having a banking business is a valid partnership when the number of partners exceeds:
a)
5 but does not exceed 10
b)
10 But does not exceed 20
c)
20 but does not exceed 50
d)
20 but does not exceed 40
|
|
Alok Mehta answered |
Earlier the Maximum Limit of Partners/Members was:-
In case of banking business – 10
In case of any other business – 20
Now the same has been simplified and the limit has been raised to 50 Partners/Members for any business.
Which of the following words can be used as a part of a firm name?- a)Crown
- b)Queen
- c)Royal
- d)Sterling
Correct answer is option 'D'. Can you explain this answer?
Which of the following words can be used as a part of a firm name?
a)
Crown
b)
Queen
c)
Royal
d)
Sterling
|
|
Arun Khanna answered |
The name in which the partners carry on their business is the firm name. A firm name can be anything as long as it does not go against the rules relating to trade name or goodwill. Section 58 (3) of the Indian Partnership Act. 1932 says that “A firm name shall not contain any of the following words, namely – ‘crown’, ‘Emperor’, ‘Empress’, ‘Implied’, ‘King’, ‘Queen’, ‘Royal’, or words expressing or implying the sanction, approach or patronage of government except when the State government signified its consent to the use of such words as part of the firm name by order in writing”.
As per the accepted view, the registration of the firm is considered complete when.- a)Complete application for registration is filed with the Registrar.
- b)Registrar files the statement and makes entries in the Register of Firms.
- c)Registrar gives notice of registration to all partners.
- d)Court records the statement and certifies the entries in Register of Firms.
Correct answer is option 'B'. Can you explain this answer?
As per the accepted view, the registration of the firm is considered complete when.
a)
Complete application for registration is filed with the Registrar.
b)
Registrar files the statement and makes entries in the Register of Firms.
c)
Registrar gives notice of registration to all partners.
d)
Court records the statement and certifies the entries in Register of Firms.
|
|
Mrinalini Iyer answered |
Explanation:
Filing of Complete Application:
- The first step in the registration process is to file a complete application for registration with the Registrar of Firms.
- This application typically includes details such as the name of the firm, the principal place of business, the names of all partners, and the date of commencement of the firm.
Registrar's Role:
- Once the complete application is filed, the Registrar of Firms reviews the application and verifies the information provided.
- If the Registrar finds the application to be in order and compliant with the requirements, he proceeds to file the statement and makes entries in the Register of Firms.
Completion of Registration:
- The registration of the firm is considered complete when the Registrar files the statement and makes entries in the Register of Firms.
- This step signifies that the firm is now officially registered under the relevant laws and regulations.
Notice of Registration:
- While the Registrar does not need to give notice of registration to all partners for the registration to be considered complete, it is a good practice to inform all partners of the successful registration.
Court's Role:
- The court does not play a direct role in the registration process of a firm. The registration is completed once the Registrar files the statement and makes entries in the Register of Firms.
In conclusion, the registration of a firm is considered complete when the Registrar of Firms files the statement and makes entries in the Register of Firms, indicating that the firm is now officially registered.
Filing of Complete Application:
- The first step in the registration process is to file a complete application for registration with the Registrar of Firms.
- This application typically includes details such as the name of the firm, the principal place of business, the names of all partners, and the date of commencement of the firm.
Registrar's Role:
- Once the complete application is filed, the Registrar of Firms reviews the application and verifies the information provided.
- If the Registrar finds the application to be in order and compliant with the requirements, he proceeds to file the statement and makes entries in the Register of Firms.
Completion of Registration:
- The registration of the firm is considered complete when the Registrar files the statement and makes entries in the Register of Firms.
- This step signifies that the firm is now officially registered under the relevant laws and regulations.
Notice of Registration:
- While the Registrar does not need to give notice of registration to all partners for the registration to be considered complete, it is a good practice to inform all partners of the successful registration.
Court's Role:
- The court does not play a direct role in the registration process of a firm. The registration is completed once the Registrar files the statement and makes entries in the Register of Firms.
In conclusion, the registration of a firm is considered complete when the Registrar of Firms files the statement and makes entries in the Register of Firms, indicating that the firm is now officially registered.
Raj and Ram, two friends buy hundred mobile sets agreeing to share the same between them. It is a : - a)Co-ownership
- b)Partnership
- c)Joint venture
- d)Hindu undivided family business
Correct answer is option 'A'. Can you explain this answer?
Raj and Ram, two friends buy hundred mobile sets agreeing to share the same between them. It is a :
a)
Co-ownership
b)
Partnership
c)
Joint venture
d)
Hindu undivided family business
|
|
Akshay Das answered |
Co-ownership
Co-ownership means two or more people owning a property jointly. In this case, Raj and Ram have jointly bought hundred mobile sets. They have agreed to share the mobile sets between themselves.
Features of co-ownership:
- Joint ownership: Both Raj and Ram jointly own the mobile sets.
- Equal rights: Both Raj and Ram have equal rights over the mobile sets.
- Sharing of profits: Any profit earned from the mobile sets will be shared equally between Raj and Ram.
- Sharing of expenses: Any expenses incurred on the mobile sets will be shared equally between Raj and Ram.
Advantages of co-ownership:
- Shared responsibility: Both Raj and Ram share the responsibility of owning the mobile sets.
- Equal rights: Both Raj and Ram have equal rights over the mobile sets.
- Sharing of profits: Any profit earned from the mobile sets will be shared equally between Raj and Ram.
Disadvantages of co-ownership:
- Disagreements: There may be disagreements between Raj and Ram on how to use the mobile sets or how to share the profits.
- Limited scope: Co-ownership may be limited in scope as it is applicable only to jointly owned property.
Conclusion:
In this case, Raj and Ram have entered into a co-ownership agreement to jointly own hundred mobile sets. They will share the profits and expenses equally. Co-ownership is a good option when two or more people want to jointly own a property or asset.
Co-ownership means two or more people owning a property jointly. In this case, Raj and Ram have jointly bought hundred mobile sets. They have agreed to share the mobile sets between themselves.
Features of co-ownership:
- Joint ownership: Both Raj and Ram jointly own the mobile sets.
- Equal rights: Both Raj and Ram have equal rights over the mobile sets.
- Sharing of profits: Any profit earned from the mobile sets will be shared equally between Raj and Ram.
- Sharing of expenses: Any expenses incurred on the mobile sets will be shared equally between Raj and Ram.
Advantages of co-ownership:
- Shared responsibility: Both Raj and Ram share the responsibility of owning the mobile sets.
- Equal rights: Both Raj and Ram have equal rights over the mobile sets.
- Sharing of profits: Any profit earned from the mobile sets will be shared equally between Raj and Ram.
Disadvantages of co-ownership:
- Disagreements: There may be disagreements between Raj and Ram on how to use the mobile sets or how to share the profits.
- Limited scope: Co-ownership may be limited in scope as it is applicable only to jointly owned property.
Conclusion:
In this case, Raj and Ram have entered into a co-ownership agreement to jointly own hundred mobile sets. They will share the profits and expenses equally. Co-ownership is a good option when two or more people want to jointly own a property or asset.
A finder of lost goods can realise the goods if true owner cannot be found with ______.- a)Reasonable diligence
- b)Ordinary diligence
- c)Lack of diligence
- d)Due diligence
Correct answer is option 'A'. Can you explain this answer?
A finder of lost goods can realise the goods if true owner cannot be found with ______.
a)
Reasonable diligence
b)
Ordinary diligence
c)
Lack of diligence
d)
Due diligence
|
|
Freedom Institute answered |
A Finder of goods has the power to sell the goods to give good title to the Buyer, if the owner of goods cannot be found with reasonable diligence. Reasonable diligence refers to the due diligence. It refers to he care expected from a logical and reasonable person.
In case of emergency a partner of the firm can act as.- a)An agent of the firm
- b)A master of the firm
- c)An employee of the firm
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
In case of emergency a partner of the firm can act as.
a)
An agent of the firm
b)
A master of the firm
c)
An employee of the firm
d)
All of the above
|
Divesh Gupta answered |
As per the section (21) of Indian Contract Act 1932 = act in emergency done by partner beyond his authority will be bind firm provided he acted in emergency
Test of emergency (a) there has arise commercial necessity that compelled to act prompty
(b) he adopt most reasonable and practiciable course of action in the circumstances
(c) he acted in good faith against loss
Test of emergency (a) there has arise commercial necessity that compelled to act prompty
(b) he adopt most reasonable and practiciable course of action in the circumstances
(c) he acted in good faith against loss
Interest on capital will be allowed only when: - a)There are heavy losses in the firm
- b)There are no profits and no losses
- c)There are profits
- d)Always
Correct answer is option 'C'. Can you explain this answer?
Interest on capital will be allowed only when:
a)
There are heavy losses in the firm
b)
There are no profits and no losses
c)
There are profits
d)
Always
|
|
Prathap Venkateswarlu answered |
According to the rules of the partnership accounts when interest should be shared only when profits
In the absence of specific provisions in the Partnership Deed, every partner is bound to contribute in ________ to the losses of the firm: - a)Equally
- b)Profit Sharing Ratio
- c)Capital Ratio
- d)Any of the above manner
Correct answer is option 'B'. Can you explain this answer?
In the absence of specific provisions in the Partnership Deed, every partner is bound to contribute in ________ to the losses of the firm:
a)
Equally
b)
Profit Sharing Ratio
c)
Capital Ratio
d)
Any of the above manner
|
|
Nandini Iyer answered |
"Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
A partner can retire on_____________- a)Reaching the age of superannuation
- b)On the balance in the capital account reaching a certain amount
- c)In accordance with the Partnership Deed
- d)On the condition of his nominee becoming a partner
Correct answer is option 'C'. Can you explain this answer?
A partner can retire on_____________
a)
Reaching the age of superannuation
b)
On the balance in the capital account reaching a certain amount
c)
In accordance with the Partnership Deed
d)
On the condition of his nominee becoming a partner
|
|
Freedom Institute answered |
Partner retirement in accordance with the Partnership Deed
A partner can retire from a partnership in accordance with the Partnership Deed, which is a legal agreement that outlines the terms and conditions of the partnership. The Partnership Deed may specify the conditions under which a partner can retire, including:
- Age of superannuation: The Partnership Deed may state that a partner can retire upon reaching a certain age, known as the age of superannuation. This age is typically determined by the partners and may vary depending on the agreement.
- Balance in the capital account: The Partnership Deed may specify that a partner can retire once the balance in their capital account reaches a certain amount. This ensures that the retiring partner receives a fair share of the partnership's assets.
- Consent of other partners: The Partnership Deed may require the consent of the other partners for a partner to retire. This ensures that the remaining partners have the opportunity to review and approve the retirement decision.
- Notice period: The Partnership Deed may also specify a notice period that a partner must give before retiring. This allows the partnership to make necessary arrangements and adjustments to accommodate the retiring partner's departure.
- Consequences of retirement: The Partnership Deed may outline the consequences of a partner's retirement, such as the distribution of assets, settlement of liabilities, and the admission of a new partner to replace the retiring partner.
It is important for partners to carefully review and adhere to the provisions outlined in the Partnership Deed when considering retirement from a partnership. The Partnership Deed serves as a legal document that governs the partnership's operations and ensures a smooth transition during the retirement process.
Each of the Partner is__________________- a)Principals as well agents
- b)Only Agents of the firm
- c)Only Representatives of the firm
- d)Only Co-partners of the firm
Correct answer is option 'A'. Can you explain this answer?
Each of the Partner is__________________
a)
Principals as well agents
b)
Only Agents of the firm
c)
Only Representatives of the firm
d)
Only Co-partners of the firm
|
|
Srsps answered |
Each of the Partner is__________________
The correct answer is option A: Principals as well agents.
Here is a detailed explanation:
Definition of Partner:
A partner is an individual who shares ownership of a business with one or more people. Partnerships are a common form of business organization where two or more individuals come together to carry out a business venture.
Explanation of the options:
A: Principals as well agents - This means that each partner acts both as a principal, representing their own interests, and as an agent, representing the interests of the partnership as a whole. Partners have the authority to make decisions on behalf of the partnership and bind the partnership to contracts and obligations.
B: Only Agents of the firm - This option implies that partners are solely acting as agents of the firm and do not have any ownership or control over the business.
C: Only Representatives of the firm - This option suggests that partners are only representatives of the firm and do not have any decision-making authority or ownership in the business.
D: Only Co-partners of the firm - This option indicates that partners are only co-owners of the firm and do not have any other roles or responsibilities.
Explanation of the correct answer:
The correct answer is option A: Principals as well agents. Partners in a partnership have a dual role where they act as both principals, representing their own interests, and agents, representing the partnership as a whole. This means that they have the authority to make decisions on behalf of the partnership and bind the partnership to contracts and obligations.
The correct answer is option A: Principals as well agents.
Here is a detailed explanation:
Definition of Partner:
A partner is an individual who shares ownership of a business with one or more people. Partnerships are a common form of business organization where two or more individuals come together to carry out a business venture.
Explanation of the options:
A: Principals as well agents - This means that each partner acts both as a principal, representing their own interests, and as an agent, representing the interests of the partnership as a whole. Partners have the authority to make decisions on behalf of the partnership and bind the partnership to contracts and obligations.
B: Only Agents of the firm - This option implies that partners are solely acting as agents of the firm and do not have any ownership or control over the business.
C: Only Representatives of the firm - This option suggests that partners are only representatives of the firm and do not have any decision-making authority or ownership in the business.
D: Only Co-partners of the firm - This option indicates that partners are only co-owners of the firm and do not have any other roles or responsibilities.
Explanation of the correct answer:
The correct answer is option A: Principals as well agents. Partners in a partnership have a dual role where they act as both principals, representing their own interests, and agents, representing the partnership as a whole. This means that they have the authority to make decisions on behalf of the partnership and bind the partnership to contracts and obligations.
Which of the following is not an essential feature of partnership?1 . Agreement2 . Registration3 . Test of Mutual Agency4 . Separate Legal Entity- a)1 & 2
- b)2 & 3
- c)2 & 4
- d)1 & 4
Correct answer is option 'C'. Can you explain this answer?
Which of the following is not an essential feature of partnership?
1 . Agreement
2 . Registration
3 . Test of Mutual Agency
4 . Separate Legal Entity
a)
1 & 2
b)
2 & 3
c)
2 & 4
d)
1 & 4
|
|
Puja Singh answered |
Essential Features of Partnership
Partnership is a type of business organization in which two or more persons come together to carry out a business with the aim of earning profits. The essential features of partnership are as follows:
1. Agreement: Partnership is based on an agreement between two or more persons. The agreement can be oral or written.
2. Test of Mutual Agency: One of the essential features of partnership is the test of mutual agency. This means that each partner can act on behalf of the partnership and bind it to a contract.
3. Sharing of Profits and Losses: Partnership involves the sharing of profits and losses among the partners. The sharing ratio can be equal or unequal.
4. Joint Ownership and Management: In partnership, the partners jointly own and manage the business. They have equal say in the decision-making process.
5. Unlimited Liability: Each partner has unlimited liability for the debts and obligations of the partnership. This means that they are personally liable for the debts of the partnership.
6. Registration: Partnership can be registered or unregistered. However, registration is not an essential feature of partnership.
Option C is the correct answer as registration is not an essential feature of partnership. While it is advisable to register a partnership for legal and tax purposes, it is not mandatory. The other options, such as agreement, test of mutual agency, and separate legal entity, are essential features of partnership.
Partnership is a type of business organization in which two or more persons come together to carry out a business with the aim of earning profits. The essential features of partnership are as follows:
1. Agreement: Partnership is based on an agreement between two or more persons. The agreement can be oral or written.
2. Test of Mutual Agency: One of the essential features of partnership is the test of mutual agency. This means that each partner can act on behalf of the partnership and bind it to a contract.
3. Sharing of Profits and Losses: Partnership involves the sharing of profits and losses among the partners. The sharing ratio can be equal or unequal.
4. Joint Ownership and Management: In partnership, the partners jointly own and manage the business. They have equal say in the decision-making process.
5. Unlimited Liability: Each partner has unlimited liability for the debts and obligations of the partnership. This means that they are personally liable for the debts of the partnership.
6. Registration: Partnership can be registered or unregistered. However, registration is not an essential feature of partnership.
Option C is the correct answer as registration is not an essential feature of partnership. While it is advisable to register a partnership for legal and tax purposes, it is not mandatory. The other options, such as agreement, test of mutual agency, and separate legal entity, are essential features of partnership.
Chapter doubts & questions for Unit 1: General Nature of Partnership - Business Laws for CA Foundation 2025 is part of CA Foundation exam preparation. The chapters have been prepared according to the CA Foundation exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for CA Foundation 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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