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Which of the following statement is not true about minor’s position as a partner
1 . He cannot become a full fledged partner in a new firm
2 . He can become a full fledged partner in an existing firm
3 . He has to bear all liabilities like other partners
4 . He can become a partner on becoming a major
- a)1 & 2
- b)2 & 3
- c)3 & 4
- d)1 & 4
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which of the following statement is not true about minors position as ...
Explanation:
The correct answer is option B: 2 & 3. Here's a detailed explanation:
1. He cannot become a full-fledged partner in a new firm: This statement is true. A minor, who is someone below the age of majority, cannot enter into a partnership agreement and therefore cannot become a full-fledged partner in a new firm.
2. He can become a full-fledged partner in an existing firm: This statement is true. Although a minor cannot initially become a partner, they can be admitted as a partner in an existing firm with the consent of all the existing partners.
3. He has to bear all liabilities like other partners: This statement is true. If a minor is admitted as a partner in an existing firm, they are liable for all the debts and obligations of the partnership, just like any other partner.
4. He can become a partner on becoming a major: This statement is not true. A minor does not automatically become a partner on reaching the age of majority. They would need to fulfill additional requirements and agreements to become a partner.
In conclusion, the statement that is not true about a minor's position as a partner is option B: 2 & 3.
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The correct answer is option B: 2 & 3. Here's a detailed explanation:
1. He cannot become a full-fledged partner in a new firm: This statement is true. A minor, who is someone below the age of majority, cannot enter into a partnership agreement and therefore cannot become a full-fledged partner in a new firm.
2. He can become a full-fledged partner in an existing firm: This statement is true. Although a minor cannot initially become a partner, they can be admitted as a partner in an existing firm with the consent of all the existing partners.
3. He has to bear all liabilities like other partners: This statement is true. If a minor is admitted as a partner in an existing firm, they are liable for all the debts and obligations of the partnership, just like any other partner.
4. He can become a partner on becoming a major: This statement is not true. A minor does not automatically become a partner on reaching the age of majority. They would need to fulfill additional requirements and agreements to become a partner.
In conclusion, the statement that is not true about a minor's position as a partner is option B: 2 & 3.
Most Upvoted Answer
Which of the following statement is not true about minors position as ...
Understanding Minors as Partners
In the context of business partnerships, the position of minors is governed by specific legal principles. Let’s analyze the statements to understand why option 'B' is the correct answer.
1. Minors Cannot Become Full-Fledged Partners in a New Firm
- This statement is true. A minor cannot be a full-fledged partner in a new partnership firm, as they lack the legal capacity to enter into contracts.
2. Minors Can Become Full-Fledged Partners in an Existing Firm
- This statement is not true. A minor cannot become a full-fledged partner in an existing firm without the consent of all partners, and even then, they can only participate in profits but not liabilities. Thus, this is the correct answer to the question.
3. Minors Have to Bear All Liabilities Like Other Partners
- This statement is false. Minors are not liable for the debts of the partnership. They can share profits but are not responsible for losses or liabilities.
4. Minors Can Become Partners on Becoming a Major
- This statement is true. Upon reaching the age of majority (usually 18 years), a minor can choose to become a full partner in the firm.
Conclusion
In summary, the correct answer is option 'B' because minors cannot transition into full-fledged partners in an existing firm. They have limited rights and responsibilities in partnership agreements, protecting them from liabilities while still allowing them to share in profits. Understanding these legal nuances is essential for anyone involved in partnership formations.
In the context of business partnerships, the position of minors is governed by specific legal principles. Let’s analyze the statements to understand why option 'B' is the correct answer.
1. Minors Cannot Become Full-Fledged Partners in a New Firm
- This statement is true. A minor cannot be a full-fledged partner in a new partnership firm, as they lack the legal capacity to enter into contracts.
2. Minors Can Become Full-Fledged Partners in an Existing Firm
- This statement is not true. A minor cannot become a full-fledged partner in an existing firm without the consent of all partners, and even then, they can only participate in profits but not liabilities. Thus, this is the correct answer to the question.
3. Minors Have to Bear All Liabilities Like Other Partners
- This statement is false. Minors are not liable for the debts of the partnership. They can share profits but are not responsible for losses or liabilities.
4. Minors Can Become Partners on Becoming a Major
- This statement is true. Upon reaching the age of majority (usually 18 years), a minor can choose to become a full partner in the firm.
Conclusion
In summary, the correct answer is option 'B' because minors cannot transition into full-fledged partners in an existing firm. They have limited rights and responsibilities in partnership agreements, protecting them from liabilities while still allowing them to share in profits. Understanding these legal nuances is essential for anyone involved in partnership formations.
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Which of the following statement is not true about minors position as a partner1 . He cannot become a full fledged partner in a new firm2 . He can become a full fledged partner in an existing firm3 . He has to bear all liabilities like other partners4 . He can become a partner on becoming a majora)1 2b)2 3c)3 4d)1 4Correct 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 statement is not true about minors position as a partner1 . He cannot become a full fledged partner in a new firm2 . He can become a full fledged partner in an existing firm3 . He has to bear all liabilities like other partners4 . He can become a partner on becoming a majora)1 2b)2 3c)3 4d)1 4Correct 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 statement is not true about minors position as a partner1 . He cannot become a full fledged partner in a new firm2 . He can become a full fledged partner in an existing firm3 . He has to bear all liabilities like other partners4 . He can become a partner on becoming a majora)1 2b)2 3c)3 4d)1 4Correct answer is option 'B'. Can you explain this answer?.
Which of the following statement is not true about minors position as a partner1 . He cannot become a full fledged partner in a new firm2 . He can become a full fledged partner in an existing firm3 . He has to bear all liabilities like other partners4 . He can become a partner on becoming a majora)1 2b)2 3c)3 4d)1 4Correct 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 statement is not true about minors position as a partner1 . He cannot become a full fledged partner in a new firm2 . He can become a full fledged partner in an existing firm3 . He has to bear all liabilities like other partners4 . He can become a partner on becoming a majora)1 2b)2 3c)3 4d)1 4Correct 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 statement is not true about minors position as a partner1 . He cannot become a full fledged partner in a new firm2 . He can become a full fledged partner in an existing firm3 . He has to bear all liabilities like other partners4 . He can become a partner on becoming a majora)1 2b)2 3c)3 4d)1 4Correct answer is option 'B'. Can you explain this answer?.
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