Steps involved in Establishing Business Test 12

Result

Steps involved in Establishing Business Test 12

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

A partners current capital a/c can have-

A
Debit balance only

B
Credit balance only

C
Debit or credit balance

D
No balance at all

Solution

Option B is the correct answer.
Question 2
1 / -0

As per section 58 of the Partnership Act, a statement on various matters for registration of the firm is required to be signed by.........

A
All the partners or duly authorized agent

B
Sr. partner

C
Managing partner of the firm

D
Secretary of the firm

Solution

Option A is the correct answer.
Question 3
1 / -0

Which of these rights is/are available to a partner in a partnership firm

A
To transfer his share

B
To demand partition of property

C
Inheritance of property

D
Take part in business

Solution

Option D is the correct answer.
Question 4
1 / -0

What is one of the hardships of a sole proprietorship?

A
Capital is limited to owners savings and bank loans

B
It has to complete too many registration formalities

C
As they are government owned there is no profit motive

D
More tax is charged on them

Solution

A business which is owned and managed by a single person is called as sole proprietorship. As the owner is a single person he/she has limited capital with him/her to invest in the business. Hence, it is one of the hardships of a sole proprietorship. The limited capital might be due to very low internal sources of finance and/or banks or other external sources of finance will also be unavailable.
Question 5
1 / -0

If the remaining partner wants to continue the business, after the retirement of a partner, a new partnership agreement is ______.

A
necessary

B
not necessary

C
optional

D
none of above

Solution

Retirement, admission, death of partner leads to reconstitution of the firm where old partnership agreement comes to an end and new partnership agreement is formed.
Question 6
1 / -0

A, B, C, and D are partners A retires, B dies, the status of partnership ______.

A
remains unchanged

B
comes to an end

C
reconstituted

D
all of the above

Solution

False.
If A retires and B dies, the status of partnership will be reconstituted as 2 partners C and D remain and then can form a new partnership agreement after giving A and B their respective shares and revaluating the assets and liabilities on the basis of previous of previous agreement.
Question 7
1 / -0

Looking at the below mentioned options one of the advantages of a partnership form of business organization is that _______.

A
all partners always have limited liability

B
all the decisions are taken by one partner

C
the business survives on the death of the partners

D
the business has access to more capital than a sole trader
Solution
A business which is carried out by two or more persons together is called as partnership firm. The features of this firm are:
Equal sharing of profit between all partners.
Decision making is done by all the partners together.
Their liability is unlimited, joint and several.
They have large capital as compared to sole trading concern.
Question 8
1 / -0

The partnership may come to an end due to the _________.

A
death of a partner

B
insolvency of partner

C
by giving notice

D
all of the above
Solution
According to the section 39 of the Indian Partnership Act, 1932, the dissolution of the partnership firm may happen in the following cases:
Death of the partner.
Insolvency of the partner.
By giving notice.
Question 9
1 / -0

What is one of the best advantages of proprietorship?

A
Shares can be sold to raise capital

B
Profits are to be shared

C
The owner has independence

D
Limited liability is enjoyed
Solution
A business which is owned and managed by a single person is called as sole proprietorship. The advantages of this are:
No sharing of profit.
The owner is independent.
Owner only makes decisions.etc.
Question 10
1 / -0

Limited liability partnership possesses not more than 2 of the following character.
1. Limited liability
2. Raise funds from public
3. No separation of management from owners
4. No Restriction on number of partners.

A
2 and 4

B
1 and 2

C
1 and 3

D
1 and 4
Solution
Limited liability company is a partnership in which some or all partners have limited liability. There is no restriction on number of partners to enter in this firm. Hence, it possess 2 characteristics:
Limited liability.
Raise funds from public.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Steps involved in Establishing Business Test 12

Result

Steps involved in Establishing Business Test 12

Score

-

Rank

-

SHARING IS CARING

Question 1

Debit balance only

Credit balance only

Debit or credit balance

No balance at all

Solution

Question 2

All the partners or duly authorized agent

Sr. partner

Managing partner of the firm

Secretary of the firm

Solution

Question 3

To transfer his share

To demand partition of property

Inheritance of property

Take part in business

Solution

Question 4

Capital is limited to owners savings and bank loans

It has to complete too many registration formalities

As they are government owned there is no profit motive

More tax is charged on them

Solution

Question 5

necessary

not necessary

optional

none of above

Solution

Question 6

remains unchanged

comes to an end

reconstituted

all of the above

Solution

Question 7

all partners always have limited liability

all the decisions are taken by one partner

the business survives on the death of the partners

the business has access to more capital than a sole trader

Solution

Question 8

death of a partner

insolvency of partner

by giving notice

all of the above

Solution

Question 9

Shares can be sold to raise capital

Profits are to be shared

The owner has independence

Limited liability is enjoyed

Solution

Question 10

2 and 4

1 and 2

1 and 3

1 and 4

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.