CA Foundation Exam > CA Foundation Questions > To a Nominal Partner, which of the following ...
Start Learning for Free
To a Nominal Partner, which of the following condition does not apply?
- a)He gives his name to the firm
- b)He does not take part in firm’s business
- c)He does not invest in the firm
- d)He is not liable to third parties
Correct answer is 'D'. Can you explain this answer?
Most Upvoted Answer
To a Nominal Partner, which of the following condition does not apply?...
Partnership Firm and Agreement
A partnership firm is a type of business entity where two or more people come together to carry on a business for profit. The partnership firm comes into existence by an agreement between all the partners.
Express or Implied Agreement
The agreement between partners can be either express or implied. An express agreement is one where all the terms and conditions are stated in writing or orally. On the other hand, an implied agreement is one where the terms and conditions are not explicitly stated but can be inferred from the conduct of the parties.
Validity of Agreement
For a partnership firm to be legally valid, the agreement between the partners must be valid. The agreement should contain all the essential elements of a valid contract such as offer, acceptance, consideration, etc. It should also be free from any legal flaws such as fraud, misrepresentation, undue influence, etc.
Registration of Agreement
Although it is not mandatory, it is advisable to register the partnership agreement with the Registrar of Firms. Registration provides legal recognition to the partnership firm and helps in resolving disputes among partners. A registered partnership firm can also sue or be sued in a court of law.
Conclusion
In conclusion, a partnership firm comes into existence by an agreement between partners, which can be either express or implied. The agreement must be valid and free from any legal flaws. It is advisable to register the partnership agreement with the Registrar of Firms for legal recognition.
A partnership firm is a type of business entity where two or more people come together to carry on a business for profit. The partnership firm comes into existence by an agreement between all the partners.
Express or Implied Agreement
The agreement between partners can be either express or implied. An express agreement is one where all the terms and conditions are stated in writing or orally. On the other hand, an implied agreement is one where the terms and conditions are not explicitly stated but can be inferred from the conduct of the parties.
Validity of Agreement
For a partnership firm to be legally valid, the agreement between the partners must be valid. The agreement should contain all the essential elements of a valid contract such as offer, acceptance, consideration, etc. It should also be free from any legal flaws such as fraud, misrepresentation, undue influence, etc.
Registration of Agreement
Although it is not mandatory, it is advisable to register the partnership agreement with the Registrar of Firms. Registration provides legal recognition to the partnership firm and helps in resolving disputes among partners. A registered partnership firm can also sue or be sued in a court of law.
Conclusion
In conclusion, a partnership firm comes into existence by an agreement between partners, which can be either express or implied. The agreement must be valid and free from any legal flaws. It is advisable to register the partnership agreement with the Registrar of Firms for legal recognition.
Community Answer
To a Nominal Partner, which of the following condition does not apply?...
As nominal partners are of two types 1 nominal partners by estoppel 2 nominal partners by holding out both since to the fact give these name With the firm by telling that they are partners or doesnot excuse another partners to give their name as guarantee hence In both case they are liable so the correct answer is d
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer?
Question Description
To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. 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 To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. 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 To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer?.
To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. 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 To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. 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 To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer?.
Solutions for To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer?, a detailed solution for To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer? has been provided alongside types of To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice To a Nominal Partner, which of the following condition does not apply?a)He gives his name to the firmb)He does not take part in firm’s businessc)He does not invest in the firmd)He is not liable to third partiesCorrect answer is 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup