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A partner can retire on
- a)reaching the age of superannuation
- b)on the balance in the capital account reaching a certain amount
- c)in accordance with the Partnership Deed
- d)on the condition of his nominee becoming a partner
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
A partner can retire ona)reaching the age of superannuationb)on the ba...
Correct option is C.
In accordance with the Partnership Deed, a partner is said to retire when other partners continue to carry on the partnership business and that partner who retires ceases to be a partner. There are three modes of retirement of a partner, which are as follows:
1. Any partner may retire at any time with the consent of all partners.
2. When the partnership deed expressly provides for the retirement of a partner; a partner may retire according to the terms of agreement between the partners.
3. When the partnership is at will, by giving notice in writing to all the other partners of his intention to retire.
In accordance with the Partnership Deed, a partner is said to retire when other partners continue to carry on the partnership business and that partner who retires ceases to be a partner. There are three modes of retirement of a partner, which are as follows:
1. Any partner may retire at any time with the consent of all partners.
2. When the partnership deed expressly provides for the retirement of a partner; a partner may retire according to the terms of agreement between the partners.
3. When the partnership is at will, by giving notice in writing to all the other partners of his intention to retire.
Most Upvoted Answer
A partner can retire ona)reaching the age of superannuationb)on the ba...
Understanding Partner Retirement in a Partnership
Retirement of a partner is a significant event in a partnership, and it can occur under various conditions. The correct answer to the question is option 'C', which refers to the Partnership Deed.
Key Reasons for Retirement
Retirement of a partner is primarily governed by the terms laid out in the Partnership Deed. Here's a breakdown of why option 'C' is the correct choice:
1. Partnership Deed Provisions
- The Partnership Deed is a legal document that outlines the rights, responsibilities, and operational procedures of the partnership.
- It specifies conditions under which a partner can retire, ensuring clarity and mutual agreement among partners.
2. Flexibility and Agreement
- The Partnership Deed allows partners to set personalized terms for retirement, accommodating individual circumstances and preferences.
- It may include conditions related to performance, contributions, or other factors that are mutually agreed upon.
3. Other Options Explained
- Option A (Age of Superannuation): This is relevant for employees but not typically applicable unless stated in the Partnership Deed.
- Option B (Capital Account Balance): While financial considerations can influence retirement, they must align with the terms outlined in the Partnership Deed.
- Option D (Nominee Becoming a Partner): This may be part of a succession plan, but again, it relies on the stipulations in the Partnership Deed.
Conclusion
In summary, the retirement of a partner primarily hinges on the conditions established in the Partnership Deed, making option 'C' the most accurate answer. This legal framework ensures a smooth transition and protects the interests of all partners involved.
Retirement of a partner is a significant event in a partnership, and it can occur under various conditions. The correct answer to the question is option 'C', which refers to the Partnership Deed.
Key Reasons for Retirement
Retirement of a partner is primarily governed by the terms laid out in the Partnership Deed. Here's a breakdown of why option 'C' is the correct choice:
1. Partnership Deed Provisions
- The Partnership Deed is a legal document that outlines the rights, responsibilities, and operational procedures of the partnership.
- It specifies conditions under which a partner can retire, ensuring clarity and mutual agreement among partners.
2. Flexibility and Agreement
- The Partnership Deed allows partners to set personalized terms for retirement, accommodating individual circumstances and preferences.
- It may include conditions related to performance, contributions, or other factors that are mutually agreed upon.
3. Other Options Explained
- Option A (Age of Superannuation): This is relevant for employees but not typically applicable unless stated in the Partnership Deed.
- Option B (Capital Account Balance): While financial considerations can influence retirement, they must align with the terms outlined in the Partnership Deed.
- Option D (Nominee Becoming a Partner): This may be part of a succession plan, but again, it relies on the stipulations in the Partnership Deed.
Conclusion
In summary, the retirement of a partner primarily hinges on the conditions established in the Partnership Deed, making option 'C' the most accurate answer. This legal framework ensures a smooth transition and protects the interests of all partners involved.
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A partner can retire ona)reaching the age of superannuationb)on the balance in the capital account reaching a certain amountc)in accordance with the Partnership Deedd)on the condition of his nominee becoming a partnerCorrect answer is option 'C'. Can you explain this answer?
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A partner can retire ona)reaching the age of superannuationb)on the balance in the capital account reaching a certain amountc)in accordance with the Partnership Deedd)on the condition of his nominee becoming a partnerCorrect answer is option 'C'. 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 partner can retire ona)reaching the age of superannuationb)on the balance in the capital account reaching a certain amountc)in accordance with the Partnership Deedd)on the condition of his nominee becoming a partnerCorrect answer is option 'C'. 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 partner can retire ona)reaching the age of superannuationb)on the balance in the capital account reaching a certain amountc)in accordance with the Partnership Deedd)on the condition of his nominee becoming a partnerCorrect answer is option 'C'. Can you explain this answer?.
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