CA Foundation Exam > CA Foundation Questions > A, B, C are active partners in the firj retir...
Start Learning for Free
A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___
- a)'A' is also liable
- b)Only 'B' & 'C are liable
- c)Firm will be deemed to be dissolved
- d)Only 'A' is liable
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A, B, C are active partners in the firj retires without giving public ...
A retiring partner who was an active partner is liable for all acts of the firm until the date of public notice.
Most Upvoted Answer
A, B, C are active partners in the firj retires without giving public ...
Understanding Partnership Liability Upon Retirement
In a partnership, the responsibilities and liabilities of partners are interconnected. When a partner retires without giving public notice, their obligations do not simply vanish. Here’s a detailed breakdown of why option 'A' is correct:
1. Legal Principles of Partnership
- In a partnership, all partners are jointly liable for the debts and obligations incurred during the partnership.
- Retirement without public notice does not release the retiring partner from liability for debts incurred while they were a partner.
2. Effects of Retirement Without Notice
- When A retires and does not notify the public, they remain liable for any liabilities incurred by the firm after their retirement, especially if third parties are unaware of their departure.
- This is critical because partnerships operate on the principle of mutual agency, where each partner can bind the firm and the other partners.
3. Implications for B and C
- B and C can continue the business and might incur new liabilities.
- However, A is also liable for these liabilities since they did not provide notice of retirement, meaning creditors can seek payment from A as well.
4. Conclusion
- Therefore, in this scenario, even though A has retired, they remain liable for the debts incurred after their retirement due to the lack of public notice.
- This ensures that creditors have a recourse for repayment, maintaining the integrity of the business's obligations.
In summary, the correct answer is 'A,' as A remains liable for the firm’s obligations incurred after their retirement without public notice.
In a partnership, the responsibilities and liabilities of partners are interconnected. When a partner retires without giving public notice, their obligations do not simply vanish. Here’s a detailed breakdown of why option 'A' is correct:
1. Legal Principles of Partnership
- In a partnership, all partners are jointly liable for the debts and obligations incurred during the partnership.
- Retirement without public notice does not release the retiring partner from liability for debts incurred while they were a partner.
2. Effects of Retirement Without Notice
- When A retires and does not notify the public, they remain liable for any liabilities incurred by the firm after their retirement, especially if third parties are unaware of their departure.
- This is critical because partnerships operate on the principle of mutual agency, where each partner can bind the firm and the other partners.
3. Implications for B and C
- B and C can continue the business and might incur new liabilities.
- However, A is also liable for these liabilities since they did not provide notice of retirement, meaning creditors can seek payment from A as well.
4. Conclusion
- Therefore, in this scenario, even though A has retired, they remain liable for the debts incurred after their retirement due to the lack of public notice.
- This ensures that creditors have a recourse for repayment, maintaining the integrity of the business's obligations.
In summary, the correct answer is 'A,' as A remains liable for the firm’s obligations incurred after their retirement without public notice.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer?
Question Description
A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer?.
A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer?.
Solutions for A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___a)'A' is also liableb)Only 'B' & 'C are liablec)Firm will be deemed to be dissolvedd)Only 'A' is liableCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup