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Guarantee given to a partner ‘A’ by the other partners ‘B & C’ means
- a)In case of loss ‘A’ will not contribute towards that loss.
- b)In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.
- c)In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.
- d)All of the above
Correct answer is option 'C'. Can you explain this answer?
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Guarantee given to a partner ‘A’ by the other partn...
Guarantee given to a partner A by the other partners B and C means that in case of loss or insufficient profits, partner A will withdraw the minimum guarantee amount. Let's break down the options and understand why the correct answer is option C.
In case of loss A will not contribute towards that loss
This option is incorrect because if partner A is a part of the partnership, they are expected to contribute towards any losses incurred by the partnership. A guarantee does not exempt them from this responsibility.
In case of insufficient profits A will receive only the minimum guarantee amount
This option is partially correct, but it does not cover the scenario where there is a loss. In case of insufficient profits, partner A will receive the minimum guarantee amount, but in case of a loss, they will still withdraw the minimum guarantee amount even if it exceeds their share of the profit/loss.
In case of loss or insufficient profits A will withdraw the minimum guarantee amount
This option is correct as it covers both scenarios - loss and insufficient profits. Partner A will withdraw the minimum guarantee amount, which is the amount agreed upon by all partners in advance as the minimum amount that partner A will receive irrespective of the profit/loss of the partnership.
To summarize, when partners B and C give a guarantee to partner A, it means that partner A will receive the minimum guarantee amount in case of loss or insufficient profits. This provides partner A with some level of security and ensures that they will not suffer any significant financial losses.
In case of loss A will not contribute towards that loss
This option is incorrect because if partner A is a part of the partnership, they are expected to contribute towards any losses incurred by the partnership. A guarantee does not exempt them from this responsibility.
In case of insufficient profits A will receive only the minimum guarantee amount
This option is partially correct, but it does not cover the scenario where there is a loss. In case of insufficient profits, partner A will receive the minimum guarantee amount, but in case of a loss, they will still withdraw the minimum guarantee amount even if it exceeds their share of the profit/loss.
In case of loss or insufficient profits A will withdraw the minimum guarantee amount
This option is correct as it covers both scenarios - loss and insufficient profits. Partner A will withdraw the minimum guarantee amount, which is the amount agreed upon by all partners in advance as the minimum amount that partner A will receive irrespective of the profit/loss of the partnership.
To summarize, when partners B and C give a guarantee to partner A, it means that partner A will receive the minimum guarantee amount in case of loss or insufficient profits. This provides partner A with some level of security and ensures that they will not suffer any significant financial losses.
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Guarantee given to a partner ‘A’ by the other partn...
Guranteed patner in any case will receive the fixed amount he is to get any defficiency wiuld be borne by other partners
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Guarantee given to a partner ‘A’ by the other partners ‘B & C’ meansa)In case of loss ‘A’ will not contribute towards that loss.b)In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.c)In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.d)All of the aboveCorrect answer is option 'C'. Can you explain this answer?
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Guarantee given to a partner ‘A’ by the other partners ‘B & C’ meansa)In case of loss ‘A’ will not contribute towards that loss.b)In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.c)In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.d)All of the aboveCorrect answer is option 'C'. 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 Guarantee given to a partner ‘A’ by the other partners ‘B & C’ meansa)In case of loss ‘A’ will not contribute towards that loss.b)In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.c)In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.d)All of the aboveCorrect answer is option 'C'. 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 Guarantee given to a partner ‘A’ by the other partners ‘B & C’ meansa)In case of loss ‘A’ will not contribute towards that loss.b)In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.c)In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.d)All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Guarantee given to a partner ‘A’ by the other partners ‘B & C’ meansa)In case of loss ‘A’ will not contribute towards that loss.b)In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.c)In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.d)All of the aboveCorrect answer is option 'C'. 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 Guarantee given to a partner ‘A’ by the other partners ‘B & C’ meansa)In case of loss ‘A’ will not contribute towards that loss.b)In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.c)In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.d)All of the aboveCorrect answer is option 'C'. 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 Guarantee given to a partner ‘A’ by the other partners ‘B & C’ meansa)In case of loss ‘A’ will not contribute towards that loss.b)In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.c)In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.d)All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
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