Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 51

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Weekly Quiz Competition

Question 1
1 / -0

Every partner is bound to attend _________ to his duties, in the conduct of the business.

A
Systematically

B
Diligently

C
Sincerely

D
Effectively

Solution

In a partnership firm, the partners who perform all the functions related to the conduct of the business are required to perform all such business with utter responsibility.
Hence, option (B) is the correct answer.
Question 2
1 / -0

___________ can assign or transfer his partnership interest to any other person, so as to make him a partner in the business.

A
No partner

B
Every partner

C
Working partner

D
Nominal partner

Solution

According to the Partnership Act 1932, no partner can assign or transfer their partnership to any third person to make him the partner of the business without the prior consent of all the other partners. Therefore, a partner cannot transfer his interest at his own will.
Hence, A is the correct option.
Question 3
1 / -0

Property of the firm shall be held by use of the partners __________.

A
Exclusively for business purposes

B
For business purposes as well as private purposes of the partners

C
For the private purposes of the partners

D
For charitable purposes

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 contributed 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. These properties should be used by all the partners exclusively for business purposes only.
Hence, A is the correct option.
Question 4
1 / -0

For loss caused to the firm by his fraud in the conduct of the business, every partner shall __________.

A
Indemnify the firm

B
Indemnify the other partner

C
Indemnify all the retiring partners

D
Indemnify only to working partners

Solution

According to the Partnership Act 1932, the liability of the partners is unlimited and they are bound to compensate with the loss of the firm that is caused by the fraud in the conduct of business.
Hence, A is the correct option.
Question 5
1 / -0

Every partner is an agent of the firm and of other partners for __________________.

A
The purpose of the management of the firm

B
The purpose of other partners

C
The purpose of liability to third parties

D
The purpose of the business of the firm
Question 6
1 / -0

Identify which of the following statement is true and which is false.
P. Registration of firm does not create partnership, but is only the evidence of existence of partnership.
Q. A partnership firm has to be compulsorily registered in order to commence its business.
R. Registration of firm may be effected at any time during the continuance of partnership.
Select the correct answer from the options given.

A
P-True, Q-False, R-True

B
P-False, Q-True, R-True

C
P-True, Q-True, R-False

D
P-False, Q-False, R-True
Question 7
1 / -0

The implied authority of any partner may be _________________.

A
Restricted by contract between the partners

B
Extended by contract between the partners

C
Either extended or restricted by contract between the partners

D
Can be extended but not restricted by contract between the partners

Solution

Option C is the correct answer.
Question 8
1 / -0

Upon dissolution, which is the proper order for application of the Firm's assets?
I. Payment of partners loan
II. In paying the debts of the firm to third parties
III. Distribution of surplus to partners in profit sharing ratio
IV. Payment of partners capital
Select the correct answer from the options given.

A
I, IV, III, II

B
II, I, IV, III

C
II, I, III, IV

D
I, II, III, IV

Solution

Option B is the correct answer.
Question 9
1 / -0

Which of the following act is within the implied authority?

A
Settlement of accounts with third parties

B
Open a bank account on behalf of the firm in the partner's own name

C
Compromise or relinquish any claim or portion of claim by the firm

D
Submit to arbitration, a dispute relating to the business of the

Solution

Implied Authority is the authority that is not conferred by the mutual agreement between the partners and which is not bind on other partners. This authority is acted on the ordinary course of business and the firm is bound by such authority when the act is done in a normal way of carrying on the firm's business. These authority is also known as ostensible authority or apparent authority. The settlement of accounts with the third parties is considered as implied authority.
Question 10
1 / -0

Which of the following is NOT required to be given in an application for registration of a firm?

A
Firm name

B
Date when each partner joined the firm

C
Date of birth of each partner of the firm

D
Duration of the firm

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 51

Result

Forms of Business Organisations Test - 51

Score

-

Rank

-

SHARING IS CARING

Question 1

Systematically

Diligently

Sincerely

Effectively

Solution

Question 2

No partner

Every partner

Working partner

Nominal partner

Solution

Question 3

Exclusively for business purposes

For business purposes as well as private purposes of the partners

For the private purposes of the partners

For charitable purposes

Solution

Question 4

Indemnify the firm

Indemnify the other partner

Indemnify all the retiring partners

Indemnify only to working partners

Solution

Question 5

The purpose of the management of the firm

The purpose of other partners

The purpose of liability to third parties

The purpose of the business of the firm

Question 6

P-True, Q-False, R-True

P-False, Q-True, R-True

P-True, Q-True, R-False

P-False, Q-False, R-True

Question 7

Restricted by contract between the partners

Extended by contract between the partners

Either extended or restricted by contract between the partners

Can be extended but not restricted by contract between the partners

Solution

Question 8

I, IV, III, II

II, I, IV, III

II, I, III, IV

I, II, III, IV

Solution

Question 9

Settlement of accounts with third parties

Open a bank account on behalf of the firm in the partner's own name

Compromise or relinquish any claim or portion of claim by the firm

Submit to arbitration, a dispute relating to the business of the

Solution

Question 10

Firm name

Date when each partner joined the firm

Date of birth of each partner of the firm

Duration of the firm

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Question Analysis

My Perfomance

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