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D and J purchased 100 bales of cotton to be sold on Joint Account. They agreed to share profit and losses equally. They are:
- a)Partners
- b)Joint owners
- c)Co-venturers
- d)None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
D and J purchased 100 bales of cotton to be sold on Joint Account. The...
Joint owners don't perform any business together.
Co- venturers are formed for a specific purpose, their aim is not only profits but also to complete that purpose but in case of partners their aim only profits.Co-ventures are formed by to organizations but partnership is formed by atleast two persons.
Here in the question only two persons are given and no specific purpose is given so they are partners.
Co- venturers are formed for a specific purpose, their aim is not only profits but also to complete that purpose but in case of partners their aim only profits.Co-ventures are formed by to organizations but partnership is formed by atleast two persons.
Here in the question only two persons are given and no specific purpose is given so they are partners.
Community Answer
D and J purchased 100 bales of cotton to be sold on Joint Account. The...
Partnership Agreement
In this scenario, D and J have purchased 100 bales of cotton to be sold on Joint Account. They have also agreed to share the profit and losses equally. Based on these facts, it can be determined that D and J are partners in a partnership business.
Definition of Partnership
A partnership is a type of business arrangement where two or more individuals come together to carry on a business with a view to making a profit. The partners agree to contribute capital, skill, or labor to the partnership and share the profits and losses according to a predetermined ratio or as mutually agreed upon.
Shared Investment and Risk
In this case, D and J jointly purchased 100 bales of cotton. This joint investment indicates that they have pooled their resources and are sharing the risk associated with the purchase. The fact that they have agreed to share the profit and losses equally further confirms their partnership agreement.
Equal Distribution of Profit and Losses
One of the essential characteristics of a partnership is the sharing of profits and losses. In this scenario, D and J have agreed to divide the profits and losses equally. This means that both partners will receive an equal share of the profits generated from the sale of the cotton and will also bear an equal portion of any losses incurred.
Legal Implications
As partners, D and J have certain rights and responsibilities under the partnership agreement. They have a fiduciary duty towards each other, which means they should act in good faith and in the best interest of the partnership. They also have the right to participate in the management and decision-making process of the partnership.
Conclusion
Based on the shared investment, equal distribution of profit and losses, and the intention to carry on a business together, it can be concluded that D and J are partners in a partnership business.
In this scenario, D and J have purchased 100 bales of cotton to be sold on Joint Account. They have also agreed to share the profit and losses equally. Based on these facts, it can be determined that D and J are partners in a partnership business.
Definition of Partnership
A partnership is a type of business arrangement where two or more individuals come together to carry on a business with a view to making a profit. The partners agree to contribute capital, skill, or labor to the partnership and share the profits and losses according to a predetermined ratio or as mutually agreed upon.
Shared Investment and Risk
In this case, D and J jointly purchased 100 bales of cotton. This joint investment indicates that they have pooled their resources and are sharing the risk associated with the purchase. The fact that they have agreed to share the profit and losses equally further confirms their partnership agreement.
Equal Distribution of Profit and Losses
One of the essential characteristics of a partnership is the sharing of profits and losses. In this scenario, D and J have agreed to divide the profits and losses equally. This means that both partners will receive an equal share of the profits generated from the sale of the cotton and will also bear an equal portion of any losses incurred.
Legal Implications
As partners, D and J have certain rights and responsibilities under the partnership agreement. They have a fiduciary duty towards each other, which means they should act in good faith and in the best interest of the partnership. They also have the right to participate in the management and decision-making process of the partnership.
Conclusion
Based on the shared investment, equal distribution of profit and losses, and the intention to carry on a business together, it can be concluded that D and J are partners in a partnership business.
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D and J purchased 100 bales of cotton to be sold on Joint Account. They agreed to share profit and losses equally. They are:a)Partnersb)Joint ownersc)Co-venturersd)NoneCorrect answer is option 'A'. Can you explain this answer?
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D and J purchased 100 bales of cotton to be sold on Joint Account. They agreed to share profit and losses equally. They are:a)Partnersb)Joint ownersc)Co-venturersd)NoneCorrect 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 D and J purchased 100 bales of cotton to be sold on Joint Account. They agreed to share profit and losses equally. They are:a)Partnersb)Joint ownersc)Co-venturersd)NoneCorrect 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 D and J purchased 100 bales of cotton to be sold on Joint Account. They agreed to share profit and losses equally. They are:a)Partnersb)Joint ownersc)Co-venturersd)NoneCorrect answer is option 'A'. Can you explain this answer?.
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