Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 49

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SHARING IS CARING

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Weekly Quiz Competition

Question 1
1 / -0

Where a partnership firm is formed for a particular undertaking or undertakings, it proceeds to carry on other undertaking or undertakings, in that event the mutual ________ of the partners in respect of the other adventures or undertakings are the same as those in respect of the original adventures of undertakings.

A
Rights

B
Duties

C
Rights and duties

D
Duties & liabilities

Solution

A partnership basically refers to the contract between two or more people who have agreed to carry on certain businesses in order to achieve common goals. So if the partnership is started for a specific undertaking, then it is the rights and duties of all the partners to carry on that undertaking with respect to all the other relevant undertakings.
Hence, option (C) is the correct answer.
Question 2
1 / -0

In the absence of agreement, express or implied, the property of the firm is deemed to include _______________________________.

A
All property, rights and interest which have been brought into the common stock for the purposes of the partnership by individual partners, whether at the commencement of the business or subsequently added there to

B
Those acquired in the course of the business with money belonging to the firm

C
The goodwill of the business

D
All of the above

Solution

A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. In the absence of any partnership deed, all the property, rights and interest contribute by the individual partners, all the property acquired in the course of the business and the goodwill of the business is considered as the property of the firm.
Question 3
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Identify the incorrect sentence.

A
A sub-partner is not connected with the firm

B
A sub-partner has no relationship with other partners in the firm

C
A sub-partner has a right in the firm's business

D
A sub-partner can claim his agreed share from the partner with whom he entered into sub-partnership

Solution

When a partner of the firm agrees to share his own share of profits with an outsider then it is called sub-partners. They have no rights in the firms' business they just have share in the firms profit or loss.
Question 4
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Which of the following partners are not liable in relation to the firm?

A
Partner by holding out

B
Working partner

C
Sub-partner

D
Partner by estoppel

Solution

When a partner of the firm agrees to share his own share of profits with an outsider then it is called sub-partners. They have no rights in the firms' business they just have share in the firms profit or loss and therefore other partners are not bound by the sub-partners act.
Question 5
1 / -0

A and B entered into an agreement to carry on a business of manufacturing and selling toys. Each one of them contributed Rs. $$35$$ lakhs as their capital with a condition that A and B will share the profits equally, but the loss, if any is to be borne by A alone. Referring to the provisions of the Indian Partnership Act, $$1932$$ decide whether there exists a partnership between A and B.

A
There is no partnership between A and B

B
A is sub-partner of B

C
There is partnership by holding out

D
There is partnership between A and B. A is partner in profit only

Solution

A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. A partner that only shares profit is regarded as a partner in profit and therefore A is a normal partner and B is a partner in profit only.
Question 6
1 / -0

A partner can transfer his interest so as to substitute the transferee in his place as the partner, without the consent of all the other partners; a member of company cannot transfer his share to any one he likes.

A
False

B
True

C
Partly true

D
Partly false

Solution

A company is a separate legal artificial body with a name and common seal by the law. In a company, the owners of the company that is the shareholders can transfer their ownership in the stock exchange market whenever they find it necessary without the consent of any other shareholder.
Hence, option (A) is the correct answer.
Question 7
1 / -0

Every partner is entitled to share in the profits ________, unless different proportions are stipulated.

A
In proportion of capital

B
Equally

C
In proportion to balance in current accounts

D
$$50\%$$ profit equally and remaining $$50\%$$ in capital ration

Solution

According to the Partnership Act 1932, every partner has an equal right to participate in the conduct and management of the business and has an equal share in the profit or loss of the firm, mentioned otherwise.
Question 8
1 / -0

Partner shall indemnify the firm for any loss caused to it but his _______ in the conduct of the firm's business.

A
Negligence

B
Interference

C
Willful neglect

D
Honesty

Solution

According to the Partnership Act 1932, the partners those are in agreement with the partnership deed who are taking part in the conduct of business and management of the firm are not entitled to receive any remuneration of any sort.
Question 9
1 / -0

Which of the following statement is incorrect as to a minor's position in a partnership firm?

A
Minor is admitted to a share of partnership profits

B
Minor is personally liable to contribute to the losses

C
Minor is entitled to a share of the firm's property

D
Minor can inspect and copy any of the firm's accounts

Solution

A minor can be admitted as a partner in a partnership firm with the consent of all the partners in the agreement where the minor will share only the profits or gains of the firm and he will have no share in the firm's loss. The minor can even inspect the books of accounts of the firm.
Hence, option (B) is the correct answer.
Question 10
1 / -0

ABC & Co., a firm consists of three partners A, B and C having one-third share each in the firm. According to A and B, the activities of C are not in the interest of the partnership and thus want to expel C from the firm. Advise A and B whether they can do so ___________.

A
Yes

B
No

C
A & B have to retire from the firm

D
Yes, but subject to permission of C

Solution

According to the Partnership Act 1932, the partners those are in agreement with the partnership deed can expel any partner with majority if the acts of the partners are not in the good faith of the business. Therefore, A and B can do so under partnership act 1932.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 49

Result

Forms of Business Organisations Test - 49

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SHARING IS CARING

Question 1

Rights

Duties

Rights and duties

Duties & liabilities

Solution

Question 2

All property, rights and interest which have been brought into the common stock for the purposes of the partnership by individual partners, whether at the commencement of the business or subsequently added there to

Those acquired in the course of the business with money belonging to the firm

The goodwill of the business

All of the above

Solution

Question 3

A sub-partner is not connected with the firm

A sub-partner has no relationship with other partners in the firm

A sub-partner has a right in the firm's business

A sub-partner can claim his agreed share from the partner with whom he entered into sub-partnership

Solution

Question 4

Partner by holding out

Working partner

Sub-partner

Partner by estoppel

Solution

Question 5

There is no partnership between A and B

A is sub-partner of B

There is partnership by holding out

There is partnership between A and B. A is partner in profit only

Solution

Question 6

False

True

Partly true

Partly false

Solution

Question 7

In proportion of capital

Equally

In proportion to balance in current accounts

$$50\%$$ profit equally and remaining $$50\%$$ in capital ration

Solution

Question 8

Negligence

Interference

Willful neglect

Honesty

Solution

Question 9

Minor is admitted to a share of partnership profits

Minor is personally liable to contribute to the losses

Minor is entitled to a share of the firm's property

Minor can inspect and copy any of the firm's accounts

Solution

Question 10

Yes

No

A & B have to retire from the firm

Yes, but subject to permission of C

Solution

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