CA Foundation Exam > CA Foundation Questions > A share of partners in a partnership firm?a)C...
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A share of partners in a partnership firm?
- a)Can be transferred according to terms and conditions of deed
- b)Can be transfer with the consent of other partners
- c)Cannot be transfer at all
- d)Can be transfer with the consent of recognized stock exchange
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A share of partners in a partnership firm?a)Can be transferred accordi...
The correct answer is option 'B'. A share of partners in a partnership firm can be transferred with the consent of other partners.
Explanation:
In a partnership firm, the partners share the profits, losses, and responsibilities of the business. The partnership firm is governed by the partnership deed, which outlines the terms and conditions of the partnership.
1. Transferability of shares:
Unlike shares in a company, the shares of partners in a partnership firm are not freely transferable. The transfer of shares in a partnership firm is subject to certain restrictions and conditions.
2. Consent of other partners:
In order to transfer a share of partners in a partnership firm, the consent of other partners is required. This is because the partnership firm is based on mutual trust and confidence between the partners. The other partners have the right to choose their fellow partners and may not want to be associated with a new partner without their consent.
3. Terms and conditions of the partnership deed:
The partnership deed governs the transfer of shares in a partnership firm. It may specify the conditions under which a share can be transferred, such as the need for unanimous consent or a majority vote of the partners. The partnership deed may also outline the procedure for transferring shares and the valuation of the share.
4. Protection of existing partners:
The requirement of consent from other partners protects the interests of the existing partners in the partnership firm. It allows them to have a say in the admission of new partners and ensures that the new partner is suitable for the business.
5. Recognition by the recognized stock exchange:
Option 'D' states that a share of partners in a partnership firm can be transferred with the consent of a recognized stock exchange. However, this statement is incorrect. Partnership interests are not traded on recognized stock exchanges like shares of a company. The transfer of partnership interests is a private matter and is governed by the partnership deed and the consent of the other partners.
In conclusion, the correct answer is option 'B'. A share of partners in a partnership firm can be transferred with the consent of other partners. This requirement protects the interests of the existing partners and ensures that the new partner is accepted by all the partners in the firm.
Explanation:
In a partnership firm, the partners share the profits, losses, and responsibilities of the business. The partnership firm is governed by the partnership deed, which outlines the terms and conditions of the partnership.
1. Transferability of shares:
Unlike shares in a company, the shares of partners in a partnership firm are not freely transferable. The transfer of shares in a partnership firm is subject to certain restrictions and conditions.
2. Consent of other partners:
In order to transfer a share of partners in a partnership firm, the consent of other partners is required. This is because the partnership firm is based on mutual trust and confidence between the partners. The other partners have the right to choose their fellow partners and may not want to be associated with a new partner without their consent.
3. Terms and conditions of the partnership deed:
The partnership deed governs the transfer of shares in a partnership firm. It may specify the conditions under which a share can be transferred, such as the need for unanimous consent or a majority vote of the partners. The partnership deed may also outline the procedure for transferring shares and the valuation of the share.
4. Protection of existing partners:
The requirement of consent from other partners protects the interests of the existing partners in the partnership firm. It allows them to have a say in the admission of new partners and ensures that the new partner is suitable for the business.
5. Recognition by the recognized stock exchange:
Option 'D' states that a share of partners in a partnership firm can be transferred with the consent of a recognized stock exchange. However, this statement is incorrect. Partnership interests are not traded on recognized stock exchanges like shares of a company. The transfer of partnership interests is a private matter and is governed by the partnership deed and the consent of the other partners.
In conclusion, the correct answer is option 'B'. A share of partners in a partnership firm can be transferred with the consent of other partners. This requirement protects the interests of the existing partners and ensures that the new partner is accepted by all the partners in the firm.
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A share of partners in a partnership firm?a)Can be transferred accordi...
Option But is correct because shares of partners cannot be transferred without the consent of all other partners.all partners put their capital and they have shares in business they have equal rights in business they have rights to ask questions.you must answer to partners.they agreed you transfer the shares.if you transfer the shares to others without tell to partners, the transaction is invalid.
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A share of partners in a partnership firm?a)Can be transferred according to terms and conditions of deedb)Can be transfer with the consent of otherpartnersc)Cannot be transfer at alld)Can be transfer with the consent ofrecognized stock exchangeCorrect answer is option 'B'. Can you explain this answer?
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