Commerce Exam > Commerce Questions > Direction: Read the following text and answe...
Start Learning for Free
Direction: Read the following text and answer the questions on the basis of the same:
Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.
Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?
- a)Madhu
- b)Himanshu
- c)Madhu and Mayank
- d)All of these
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Direction: Read the following text and answer the questions on the ba...
If the partners are not able to complete the project effectively and efficiently, then all of the partners will be held liable for the losses incurred on account of noncompletion of project
View all questions of this test
Most Upvoted Answer
Direction: Read the following text and answer the questions on the ba...
Liability for Noncompletion of Project
The liability for the losses incurred on account of noncompletion of the project rests on all the partners involved in the construction project, namely Madhu, Himanshu, and Mayank. This is because all three partners have jointly taken up the project and are bound by the terms of the written agreement.
Terms of the Agreement
According to the agreement, Madhu and Mayank are responsible for contributing the capital and making all managerial decisions. On the other hand, Himanshu is only responsible for providing capital and is not actively involved in the management of the project.
Joint Responsibility
Although Madhu and Mayank have taken the lead in terms of capital contribution and managerial decisions, it is important to note that all partners are jointly liable for the project. This means that if the project is not completed effectively and efficiently, resulting in losses, all three partners will be held accountable.
Reasoning
The reasoning behind holding all partners liable for the losses incurred on account of noncompletion of the project is based on the principle of joint and several liability. In a partnership, the actions and decisions of one partner can have consequences for all partners. This means that if one partner fails to fulfill their responsibilities or if the project is not completed as per expectations, all partners can be held responsible for the resulting losses.
Shared Risk and Reward
Partnerships are based on the concept of shared risk and reward. In this case, all partners have collectively decided to undertake the construction project and share in the potential profits. However, they also share the risk of losses if the project is not completed successfully. By agreeing to take on the project jointly, all partners have impliedly accepted the responsibility for any failures or losses that may arise.
Conclusion
In conclusion, if the partners are not able to complete the project effectively and efficiently, resulting in losses, all three partners - Madhu, Himanshu, and Mayank - will be held liable. This is because they have jointly taken up the project and are bound by the terms of the written agreement. The principle of joint and several liability applies, making all partners collectively responsible for the consequences of noncompletion of the project.
The liability for the losses incurred on account of noncompletion of the project rests on all the partners involved in the construction project, namely Madhu, Himanshu, and Mayank. This is because all three partners have jointly taken up the project and are bound by the terms of the written agreement.
Terms of the Agreement
According to the agreement, Madhu and Mayank are responsible for contributing the capital and making all managerial decisions. On the other hand, Himanshu is only responsible for providing capital and is not actively involved in the management of the project.
Joint Responsibility
Although Madhu and Mayank have taken the lead in terms of capital contribution and managerial decisions, it is important to note that all partners are jointly liable for the project. This means that if the project is not completed effectively and efficiently, resulting in losses, all three partners will be held accountable.
Reasoning
The reasoning behind holding all partners liable for the losses incurred on account of noncompletion of the project is based on the principle of joint and several liability. In a partnership, the actions and decisions of one partner can have consequences for all partners. This means that if one partner fails to fulfill their responsibilities or if the project is not completed as per expectations, all partners can be held responsible for the resulting losses.
Shared Risk and Reward
Partnerships are based on the concept of shared risk and reward. In this case, all partners have collectively decided to undertake the construction project and share in the potential profits. However, they also share the risk of losses if the project is not completed successfully. By agreeing to take on the project jointly, all partners have impliedly accepted the responsibility for any failures or losses that may arise.
Conclusion
In conclusion, if the partners are not able to complete the project effectively and efficiently, resulting in losses, all three partners - Madhu, Himanshu, and Mayank - will be held liable. This is because they have jointly taken up the project and are bound by the terms of the written agreement. The principle of joint and several liability applies, making all partners collectively responsible for the consequences of noncompletion of the project.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer?
Question Description
Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer?.
Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Direction: Read the following text and answer the questions on the basis of the same:Madhu, Himanshu and Mayank, after completing B.E. in civil engineering, have jointly taken a project of constructing three government school buildings in a village near Agra within the time period of 6 months. As per the written agreement between them, only Madhu and Mayank will contribute the capital, and take all managerial decisions, whereas Himanshu will contribute capital only but will not be actively involved in management.Q. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses incurred on account of noncompletion of project?a)Madhub)Himanshuc)Madhu and Mayankd)All of theseCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
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