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Can you explain the answer of this question below:
Which of the following persons may be admitted as a partner in a partnership firm:-
- A:An illiterate person of 19 years
- B:A person of unsound mind
- C:A convict undergoing sentence for a criminal offence
- D:An insolvent person.
The answer is a.
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Can you explain the answer of this question below:Which of the followi...
Admission of Partners in a Partnership Firm
Overview:
In a partnership firm, the selection of partners is crucial as it directly impacts the functioning and success of the business. There are certain criteria that need to be met for a person to be admitted as a partner in a partnership firm.
An illiterate person of 19 years:
- An illiterate person of 19 years can be admitted as a partner in a partnership firm. Literacy is not a mandatory requirement for being a partner in a partnership. As long as the person is of legal age (18 years or above), they can enter into a partnership agreement.
A person of unsound mind:
- A person of unsound mind cannot be admitted as a partner in a partnership firm. In order to enter into a partnership agreement, all parties must have the capacity to understand the terms and implications of the agreement. A person of unsound mind lacks the legal capacity to enter into contracts.
A convict undergoing sentence for a criminal offence:
- A convict undergoing sentence for a criminal offence may not be admitted as a partner in a partnership firm. The presence of such a person may bring legal and reputational risks to the business. It is advisable to conduct thorough background checks before admitting a person as a partner.
An insolvent person:
- An insolvent person may not be admitted as a partner in a partnership firm. An insolvent person is unable to meet their financial obligations and may not be in a position to contribute capital or assets to the partnership. This can jeopardize the financial stability of the partnership.
In conclusion, while an illiterate person of 19 years can be admitted as a partner in a partnership firm, a person of unsound mind, a convict undergoing sentence for a criminal offence, and an insolvent person may not meet the criteria for admission as partners. It is important to carefully consider the legal and financial implications before admitting a person as a partner in a partnership firm.
Overview:
In a partnership firm, the selection of partners is crucial as it directly impacts the functioning and success of the business. There are certain criteria that need to be met for a person to be admitted as a partner in a partnership firm.
An illiterate person of 19 years:
- An illiterate person of 19 years can be admitted as a partner in a partnership firm. Literacy is not a mandatory requirement for being a partner in a partnership. As long as the person is of legal age (18 years or above), they can enter into a partnership agreement.
A person of unsound mind:
- A person of unsound mind cannot be admitted as a partner in a partnership firm. In order to enter into a partnership agreement, all parties must have the capacity to understand the terms and implications of the agreement. A person of unsound mind lacks the legal capacity to enter into contracts.
A convict undergoing sentence for a criminal offence:
- A convict undergoing sentence for a criminal offence may not be admitted as a partner in a partnership firm. The presence of such a person may bring legal and reputational risks to the business. It is advisable to conduct thorough background checks before admitting a person as a partner.
An insolvent person:
- An insolvent person may not be admitted as a partner in a partnership firm. An insolvent person is unable to meet their financial obligations and may not be in a position to contribute capital or assets to the partnership. This can jeopardize the financial stability of the partnership.
In conclusion, while an illiterate person of 19 years can be admitted as a partner in a partnership firm, a person of unsound mind, a convict undergoing sentence for a criminal offence, and an insolvent person may not meet the criteria for admission as partners. It is important to carefully consider the legal and financial implications before admitting a person as a partner in a partnership firm.
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Can you explain the answer of this question below:Which of the following persons may be admitted as a partner in a partnership firm:-A:An illiterate person of 19 yearsB:A person of unsound mindC:A convict undergoing sentence for a criminal offenceD:An insolvent person.The answer is a.
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Can you explain the answer of this question below:Which of the following persons may be admitted as a partner in a partnership firm:-A:An illiterate person of 19 yearsB:A person of unsound mindC:A convict undergoing sentence for a criminal offenceD:An insolvent person.The answer is a. 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 Can you explain the answer of this question below:Which of the following persons may be admitted as a partner in a partnership firm:-A:An illiterate person of 19 yearsB:A person of unsound mindC:A convict undergoing sentence for a criminal offenceD:An insolvent person.The answer is a. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Which of the following persons may be admitted as a partner in a partnership firm:-A:An illiterate person of 19 yearsB:A person of unsound mindC:A convict undergoing sentence for a criminal offenceD:An insolvent person.The answer is a..
Can you explain the answer of this question below:Which of the following persons may be admitted as a partner in a partnership firm:-A:An illiterate person of 19 yearsB:A person of unsound mindC:A convict undergoing sentence for a criminal offenceD:An insolvent person.The answer is a. 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 Can you explain the answer of this question below:Which of the following persons may be admitted as a partner in a partnership firm:-A:An illiterate person of 19 yearsB:A person of unsound mindC:A convict undergoing sentence for a criminal offenceD:An insolvent person.The answer is a. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Which of the following persons may be admitted as a partner in a partnership firm:-A:An illiterate person of 19 yearsB:A person of unsound mindC:A convict undergoing sentence for a criminal offenceD:An insolvent person.The answer is a..
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