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The partnership firms becomes an illegal association, when
- a)The number of partners in a banking business exceeds 10.
- b)The number of partners in a non-banking business exceeds 10.
- c)The number of partners in a banking business exceeds 5.
- d)The number of partners in a non-banking business exceeds 20.
Correct answer is option 'A,D'. Can you explain this answer?
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The partnership firms becomes an illegal association, whena)The number...
Partnership Firms Becoming Illegal Associations
There are certain conditions under which a partnership firm can become an illegal association. In this case, the conditions are as follows:
A: The number of partners in a banking business exceeds 10.
- If a partnership firm engaged in a banking business has more than 10 partners, it becomes an illegal association.
D: The number of partners in a non-banking business exceeds 20.
- If a partnership firm engaged in a non-banking business has more than 20 partners, it also becomes an illegal association.
So, in this particular scenario, the partnership firm becomes an illegal association when both conditions A and D are met.
There are certain conditions under which a partnership firm can become an illegal association. In this case, the conditions are as follows:
A: The number of partners in a banking business exceeds 10.
- If a partnership firm engaged in a banking business has more than 10 partners, it becomes an illegal association.
D: The number of partners in a non-banking business exceeds 20.
- If a partnership firm engaged in a non-banking business has more than 20 partners, it also becomes an illegal association.
So, in this particular scenario, the partnership firm becomes an illegal association when both conditions A and D are met.
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The partnership firms becomes an illegal association, whena)The number...
Introduction:
In partnership firms, the number of partners and their roles are important factors that determine the legality of the association. There are different rules and regulations for banking and non-banking businesses when it comes to the maximum number of partners allowed. Let's discuss the options and determine the correct answers.
Explanation:
The correct answer is option 'A' and 'D'. Let's understand why these options are correct:
A) The number of partners in a banking business exceeds 10:
- In a banking business, as per the Banking Regulation Act, 1949, the maximum number of partners allowed is 10.
- If the number of partners exceeds 10 in a banking business, the partnership firm becomes an illegal association.
D) The number of partners in a non-banking business exceeds 20:
- In a non-banking business, as per the Indian Partnership Act, 1932, the maximum number of partners allowed is 20 for a partnership firm.
- If the number of partners exceeds 20 in a non-banking business, the partnership firm becomes an illegal association.
Other options:
B) The number of partners in a non-banking business exceeds 10:
- This statement is incorrect. As mentioned earlier, the maximum number of partners allowed in a non-banking business is 20, not 10.
- Therefore, the statement is not applicable and does not make the partnership firm an illegal association.
C) The number of partners in a banking business exceeds 5:
- This statement is incorrect. In a banking business, the maximum number of partners allowed is 10, not 5.
- Therefore, the statement is not applicable and does not make the partnership firm an illegal association.
Conclusion:
In conclusion, a partnership firm becomes an illegal association when the number of partners exceeds 10 in a banking business and when the number of partners exceeds 20 in a non-banking business. These restrictions are in place to ensure proper governance and accountability within the partnership firm.
In partnership firms, the number of partners and their roles are important factors that determine the legality of the association. There are different rules and regulations for banking and non-banking businesses when it comes to the maximum number of partners allowed. Let's discuss the options and determine the correct answers.
Explanation:
The correct answer is option 'A' and 'D'. Let's understand why these options are correct:
A) The number of partners in a banking business exceeds 10:
- In a banking business, as per the Banking Regulation Act, 1949, the maximum number of partners allowed is 10.
- If the number of partners exceeds 10 in a banking business, the partnership firm becomes an illegal association.
D) The number of partners in a non-banking business exceeds 20:
- In a non-banking business, as per the Indian Partnership Act, 1932, the maximum number of partners allowed is 20 for a partnership firm.
- If the number of partners exceeds 20 in a non-banking business, the partnership firm becomes an illegal association.
Other options:
B) The number of partners in a non-banking business exceeds 10:
- This statement is incorrect. As mentioned earlier, the maximum number of partners allowed in a non-banking business is 20, not 10.
- Therefore, the statement is not applicable and does not make the partnership firm an illegal association.
C) The number of partners in a banking business exceeds 5:
- This statement is incorrect. In a banking business, the maximum number of partners allowed is 10, not 5.
- Therefore, the statement is not applicable and does not make the partnership firm an illegal association.
Conclusion:
In conclusion, a partnership firm becomes an illegal association when the number of partners exceeds 10 in a banking business and when the number of partners exceeds 20 in a non-banking business. These restrictions are in place to ensure proper governance and accountability within the partnership firm.
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The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer?
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The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer?.
The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer?.
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The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer?, a detailed solution for The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer? has been provided alongside types of The partnership firms becomes an illegal association, whena)The number of partners in a banking business exceeds 10.b)The number of partners in a non-banking business exceeds 10.c)The number of partners in a banking business exceeds 5.d)The number of partners in a non-banking business exceeds 20.Correct answer is option 'A,D'. Can you explain this answer? theory, EduRev gives you an
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