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Which of the following statements is not true about minor’s position as a partner?
- a)He cannot become a full-fledged partner in a new firm
- b)He can become a full-fledged partner in an existing firm
- c)He can be admitted only to the benefits of any existing firm.
- d)He can become partner on becoming a major.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which of the following statements is not true about minors position as...
Explanation:
The correct answer is B: He can become a full-fledged partner in an existing firm.
Reason:
Here are the explanations for each statement:
A: He cannot become a full-fledged partner in a new firm
- This statement is true. A minor cannot become a full-fledged partner in a new firm because they are not of legal age to enter into a legally binding partnership agreement.
B: He can become a full-fledged partner in an existing firm
- This statement is not true. A minor cannot become a full-fledged partner in an existing firm because they are not of legal age to enter into a legally binding partnership agreement.
C: He can be admitted only to the benefits of any existing firm.
- This statement is true. A minor can be admitted to the benefits of an existing firm, which means they can receive a share of the profits or benefits from the partnership but they cannot be held personally liable for the firm's debts.
D: He can become a partner on becoming a major.
- This statement is true. Once a minor becomes a major (reaches the legal age of majority), they can become a full-fledged partner in a firm.
Therefore, the correct answer is B: He can become a full-fledged partner in an existing firm.
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The correct answer is B: He can become a full-fledged partner in an existing firm.
Reason:
Here are the explanations for each statement:
A: He cannot become a full-fledged partner in a new firm
- This statement is true. A minor cannot become a full-fledged partner in a new firm because they are not of legal age to enter into a legally binding partnership agreement.
B: He can become a full-fledged partner in an existing firm
- This statement is not true. A minor cannot become a full-fledged partner in an existing firm because they are not of legal age to enter into a legally binding partnership agreement.
C: He can be admitted only to the benefits of any existing firm.
- This statement is true. A minor can be admitted to the benefits of an existing firm, which means they can receive a share of the profits or benefits from the partnership but they cannot be held personally liable for the firm's debts.
D: He can become a partner on becoming a major.
- This statement is true. Once a minor becomes a major (reaches the legal age of majority), they can become a full-fledged partner in a firm.
Therefore, the correct answer is B: He can become a full-fledged partner in an existing firm.
Most Upvoted Answer
Which of the following statements is not true about minors position as...
Minors Position as a Partner
Minors, individuals who are under the age of 18, are generally not eligible to enter into legal contracts. However, there are certain exceptions to this rule. When it comes to minors becoming partners in a firm, there are specific conditions and limitations that apply.
The statement that is not true about a minor's position as a partner is option B, which states that a minor can become a full-fledged partner in an existing firm.
a) He cannot become a full-fledged partner in a new firm
A minor cannot become a full-fledged partner in a new firm. This is because minors lack the legal capacity to enter into a contract. Partnership agreements are considered contracts, and minors are generally not bound by them. Therefore, a minor cannot be a full-fledged partner in a new firm.
b) He can become a full-fledged partner in an existing firm
This statement is not true. Even in the case of an existing firm, a minor cannot become a full-fledged partner. As mentioned earlier, minors lack the capacity to enter into contracts, and partnership agreements are considered contracts. Therefore, a minor cannot have the full rights and responsibilities of a partner in an existing firm.
c) He can be admitted only to the benefits of any existing firm
A minor can be admitted to the benefits of any existing firm. This means that while a minor cannot be a full-fledged partner, they can still enjoy the profits and benefits of the partnership. However, they will not be personally liable for any of the firm's obligations.
d) He can become a partner on becoming a major
A minor can become a partner in a firm on becoming a major. Once a minor reaches the age of majority (usually 18 years old), they can choose to continue their partnership in the firm or withdraw from it. At this point, they have the legal capacity to enter into a contract, and hence can become a partner.
In conclusion, a minor cannot become a full-fledged partner in either a new or existing firm. However, they can be admitted to the benefits of an existing firm and can become a partner once they reach the age of majority.
Introduction
Minors, individuals who are under the age of 18, are generally not eligible to enter into legal contracts. However, there are certain exceptions to this rule. When it comes to minors becoming partners in a firm, there are specific conditions and limitations that apply.
Statement
The statement that is not true about a minor's position as a partner is option B, which states that a minor can become a full-fledged partner in an existing firm.
Explanation
a) He cannot become a full-fledged partner in a new firm
A minor cannot become a full-fledged partner in a new firm. This is because minors lack the legal capacity to enter into a contract. Partnership agreements are considered contracts, and minors are generally not bound by them. Therefore, a minor cannot be a full-fledged partner in a new firm.
b) He can become a full-fledged partner in an existing firm
This statement is not true. Even in the case of an existing firm, a minor cannot become a full-fledged partner. As mentioned earlier, minors lack the capacity to enter into contracts, and partnership agreements are considered contracts. Therefore, a minor cannot have the full rights and responsibilities of a partner in an existing firm.
c) He can be admitted only to the benefits of any existing firm
A minor can be admitted to the benefits of any existing firm. This means that while a minor cannot be a full-fledged partner, they can still enjoy the profits and benefits of the partnership. However, they will not be personally liable for any of the firm's obligations.
d) He can become a partner on becoming a major
A minor can become a partner in a firm on becoming a major. Once a minor reaches the age of majority (usually 18 years old), they can choose to continue their partnership in the firm or withdraw from it. At this point, they have the legal capacity to enter into a contract, and hence can become a partner.
In conclusion, a minor cannot become a full-fledged partner in either a new or existing firm. However, they can be admitted to the benefits of an existing firm and can become a partner once they reach the age of majority.
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Which of the following statements is not true about minors position as a partner?a)He cannot become a full-fledged partner in a new firmb)He can become a full-fledged partner in an existing firmc)He can be admitted only to the benefits of any existing firm.d)He can become partner on becoming a major.Correct answer is option 'B'. Can you explain this answer?
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Which of the following statements is not true about minors position as a partner?a)He cannot become a full-fledged partner in a new firmb)He can become a full-fledged partner in an existing firmc)He can be admitted only to the benefits of any existing firm.d)He can become partner on becoming a major.Correct answer is option 'B'. 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 Which of the following statements is not true about minors position as a partner?a)He cannot become a full-fledged partner in a new firmb)He can become a full-fledged partner in an existing firmc)He can be admitted only to the benefits of any existing firm.d)He can become partner on becoming a major.Correct answer is option 'B'. 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 Which of the following statements is not true about minors position as a partner?a)He cannot become a full-fledged partner in a new firmb)He can become a full-fledged partner in an existing firmc)He can be admitted only to the benefits of any existing firm.d)He can become partner on becoming a major.Correct answer is option 'B'. Can you explain this answer?.
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