CA CPT Exam > CA CPT Questions > Active partner is one who:a)Takes part in the...
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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?
Verified Answer
Active partner is one who:a)Takes part in the business of the firmb)Ac...
An active partner is an individual who plays an integral role in the management, decision-making, and overall functioning of a business or partnership. This type of partner is different from a silent or limited partner, who may only provide financial support but does not participate in the day-to-day operations of the business. Here are some key aspects of an active partner:
Participation in the Business of the Firm:
- An active partner is responsible for making decisions related to the management and operation of the business.
- They may be involved in setting strategic goals, creating business plans, and overseeing various aspects of the company, such as marketing, sales, and finance.
- Active partners are accountable for the success and growth of the business and may be held legally responsible for its actions and debts.
Active Involvement in Co-curricular Activities:
- While this may not be directly related to the business, active partners may also participate in activities that promote the growth and development of the partnership.
- This can include attending industry conferences, networking events, or engaging in professional development opportunities to stay informed about trends and best practices within their respective fields.
Sharing of Profits:
- As an active partner, they are entitled to a share of the profits generated by the business.
- The specific percentage or amount of profit-sharing may be determined by a partnership agreement, which outlines the rights and responsibilities of each partner within the business.
Authority and Decision-making:
- Active partners have the authority to make decisions on behalf of the partnership.
- This may include entering into contracts, hiring employees, or making financial decisions that impact the company's operations.
- An active partner's authority may be limited by the partnership agreement or by the consensus of the other partners.
In summary, an active partner is a crucial member of a business partnership who participates in the management, decision-making, and overall functioning of the business. They are responsible for the success and growth of the company, share in the profits, and have the authority to make decisions on behalf of the partnership.
Participation in the Business of the Firm:
- An active partner is responsible for making decisions related to the management and operation of the business.
- They may be involved in setting strategic goals, creating business plans, and overseeing various aspects of the company, such as marketing, sales, and finance.
- Active partners are accountable for the success and growth of the business and may be held legally responsible for its actions and debts.
Active Involvement in Co-curricular Activities:
- While this may not be directly related to the business, active partners may also participate in activities that promote the growth and development of the partnership.
- This can include attending industry conferences, networking events, or engaging in professional development opportunities to stay informed about trends and best practices within their respective fields.
Sharing of Profits:
- As an active partner, they are entitled to a share of the profits generated by the business.
- The specific percentage or amount of profit-sharing may be determined by a partnership agreement, which outlines the rights and responsibilities of each partner within the business.
Authority and Decision-making:
- Active partners have the authority to make decisions on behalf of the partnership.
- This may include entering into contracts, hiring employees, or making financial decisions that impact the company's operations.
- An active partner's authority may be limited by the partnership agreement or by the consensus of the other partners.
In summary, an active partner is a crucial member of a business partnership who participates in the management, decision-making, and overall functioning of the business. They are responsible for the success and growth of the company, share in the profits, and have the authority to make decisions on behalf of the partnership.
Most Upvoted Answer
Active partner is one who:a)Takes part in the business of the firmb)Ac...
An active partner is an individual who plays an integral role in the management, decision-making, and overall functioning of a business or partnership. This type of partner is different from a silent or limited partner, who may only provide financial support but does not participate in the day-to-day operations of the business. Here are some key aspects of an active partner:
Participation in the Business of the Firm:
- An active partner is responsible for making decisions related to the management and operation of the business.
- They may be involved in setting strategic goals, creating business plans, and overseeing various aspects of the company, such as marketing, sales, and finance.
- Active partners are accountable for the success and growth of the business and may be held legally responsible for its actions and debts.
Active Involvement in Co-curricular Activities:
- While this may not be directly related to the business, active partners may also participate in activities that promote the growth and development of the partnership.
- This can include attending industry conferences, networking events, or engaging in professional development opportunities to stay informed about trends and best practices within their respective fields.
Sharing of Profits:
- As an active partner, they are entitled to a share of the profits generated by the business.
- The specific percentage or amount of profit-sharing may be determined by a partnership agreement, which outlines the rights and responsibilities of each partner within the business.
Authority and Decision-making:
- Active partners have the authority to make decisions on behalf of the partnership.
- This may include entering into contracts, hiring employees, or making financial decisions that impact the company's operations.
- An active partner's authority may be limited by the partnership agreement or by the consensus of the other partners.
In summary, an active partner is a crucial member of a business partnership who participates in the management, decision-making, and overall functioning of the business. They are responsible for the success and growth of the company, share in the profits, and have the authority to make decisions on behalf of the partnership.
Participation in the Business of the Firm:
- An active partner is responsible for making decisions related to the management and operation of the business.
- They may be involved in setting strategic goals, creating business plans, and overseeing various aspects of the company, such as marketing, sales, and finance.
- Active partners are accountable for the success and growth of the business and may be held legally responsible for its actions and debts.
Active Involvement in Co-curricular Activities:
- While this may not be directly related to the business, active partners may also participate in activities that promote the growth and development of the partnership.
- This can include attending industry conferences, networking events, or engaging in professional development opportunities to stay informed about trends and best practices within their respective fields.
Sharing of Profits:
- As an active partner, they are entitled to a share of the profits generated by the business.
- The specific percentage or amount of profit-sharing may be determined by a partnership agreement, which outlines the rights and responsibilities of each partner within the business.
Authority and Decision-making:
- Active partners have the authority to make decisions on behalf of the partnership.
- This may include entering into contracts, hiring employees, or making financial decisions that impact the company's operations.
- An active partner's authority may be limited by the partnership agreement or by the consensus of the other partners.
In summary, an active partner is a crucial member of a business partnership who participates in the management, decision-making, and overall functioning of the business. They are responsible for the success and growth of the company, share in the profits, and have the authority to make decisions on behalf of the partnership.
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Active partner is one who:a)Takes part in the business of the firmb)Actively participates in co-curricular activitiesc)Actively shares the profitsd)Makes a show of authorityCorrect answer is option 'A'. Can you explain this answer?
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Active partner is one who:a)Takes part in the business of the firmb)Actively participates in co-curricular activitiesc)Actively shares the profitsd)Makes a show of authorityCorrect answer is option 'A'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Active partner is one who:a)Takes part in the business of the firmb)Actively participates in co-curricular activitiesc)Actively shares the profitsd)Makes a show of authorityCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Active partner is one who:a)Takes part in the business of the firmb)Actively participates in co-curricular activitiesc)Actively shares the profitsd)Makes a show of authorityCorrect answer is option 'A'. Can you explain this answer?.
Active partner is one who:a)Takes part in the business of the firmb)Actively participates in co-curricular activitiesc)Actively shares the profitsd)Makes a show of authorityCorrect answer is option 'A'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Active partner is one who:a)Takes part in the business of the firmb)Actively participates in co-curricular activitiesc)Actively shares the profitsd)Makes a show of authorityCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Active partner is one who:a)Takes part in the business of the firmb)Actively participates in co-curricular activitiesc)Actively shares the profitsd)Makes a show of authorityCorrect answer is option 'A'. Can you explain this answer?.
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