Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 56

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Weekly Quiz Competition

Question 1
1 / -0

A partner may retire from an existing firm __________________.

A
With consent of all partners

B
As per express agreement

C
By written notice in partnership at win

D
All of the above

Solution

Every partner is an agent of the partnership firm. Individuals have to enter into a contract to become partners. A partner may retire from an existing firm:a) With consent of all partners
b) As per express agreement
c) By written notice in partnership at win.
Question 2
1 / -0

To bind the firm under implied authority, the act must be done in the _____________.

A
Routine Way

B
Regular Way

C
Extra-ordinary Way

D
Usual Way

Solution

To bind the firm under implied authority, the act must be done in the usual way. Implied authority can be referred to an agent with the jurisdiction to perform acts which are reasonably necessary to accomplish the purpose of an organization. Under contract law, implied authority figures have the ability to make a legally binding contract on behalf of another person or company.
Question 3
1 / -0

A joint HUF business ceases to exist on the death of the KARTA.

A
True

B
False

C
Partly true

D
None of above

Solution

A joint HUF business ceases to exist on the death of the KARTA- this is a true statement. The affairs of business are managed by the head of the family, who is known as the Karta. In the entire Hindu joint family, the karta occupies a very important position. Karta is the eldest member of the family. Only a coparcener can become Karta.
Question 4
1 / -0

If profit sharing ratio is not specified in the partnership deed, then the profit is shared ________________.

A
Equally

B
According to the seniority of partners

C
According to the capital contribution

D
According to qualification.

Solution

If profit sharing ratio is not specified in the partnership deed, then the profit is shared equally. The partners can share profit in any ratio. But in the absence of an agreement, they share profits equally.
Question 5
1 / -0

What is a Partnership?

A
An agreement between persons

B
An association of person

C
A body of individuals

D
All of the above

Solution

Partnership is an agreement between persons. Partnership is an association of 2 or more individuals but not more than 20 who agree to share the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all.
Partnership can be defined as a type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts' other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments.
Question 6
1 / -0

What is the maximum number of partners permissible for a firm carrying on general business?

A
$$7$$

B
$$10$$

C
$$20$$

D
$$50$$

Solution

Option C is the correct answer.
Question 7
1 / -0

How may a partnership come into existence?

A
By inheritance of property

B
By the operation of law

C
By an expressed agreement only

D
By an expressed or implied agreement

Solution

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

____________ are preferred when one needs to convey information in writing.

A
Office Order

B
Office Circular

C
Office Note

D
Memorandum

Solution

Option D is the correct answer.
Memorandum are preferred when one needs to convey information in writing.
Question 9
1 / -0

Which of the following statement is correct?

A
Partners are the agents of the firm but member of company are not its agents

B
Partner cannot contract with his firm but a member of a company can

C
Both (a) and (b)

D
None of these is correct

Solution

Persons who have entered into a partnership with one another are called individually "partners". Following statements are correct:
a) Partners are the agents of the firm but member of company are not its agents
b) Partner cannot contract with his firm but a member of a company can.
Question 10
1 / -0

The liability of sole proprietor is

A
Limited to the extent of his capital invested

B
Limited to the extent of the value of his business assets

C
Limited to the extent of the value of his business assets and all his private estates

D
Limited to the extent of his profit earned

Solution

Sole proprietors have unlimited liability. This implies that the owner is personally responsible for payment of debts in case the assets of the business are not sufficient to meet all the debts. As such the owner’s personal possessions such as his/her personal car and other assets could be sold for repaying the debt.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 56

Result

Forms of Business Organisations Test - 56

Score

-

Rank

-

SHARING IS CARING

Question 1

With consent of all partners

As per express agreement

By written notice in partnership at win

All of the above

Solution

Question 2

Routine Way

Regular Way

Extra-ordinary Way

Usual Way

Solution

Question 3

True

False

Partly true

None of above

Solution

Question 4

Equally

According to the seniority of partners

According to the capital contribution

According to qualification.

Solution

Question 5

An agreement between persons

An association of person

A body of individuals

All of the above

Solution

Question 6

$$7$$

$$10$$

$$20$$

$$50$$

Solution

Question 7

By inheritance of property

By the operation of law

By an expressed agreement only

By an expressed or implied agreement

Solution

Question 8

Office Order

Office Circular

Office Note

Memorandum

Solution

Question 9

Partners are the agents of the firm but member of company are not its agents

Partner cannot contract with his firm but a member of a company can

Both (a) and (b)

None of these is correct

Solution

Question 10

Limited to the extent of his capital invested

Limited to the extent of the value of his business assets

Limited to the extent of the value of his business assets and all his private estates

Limited to the extent of his profit earned

Solution

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