Steps involved in Establishing Business Test 16

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Steps involved in Establishing Business Test 16

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Weekly Quiz Competition

Question 1
1 / -0

In which of the following cases, a partnership firm may be dissolved?
X. On the death of a partner.
Y. On the insolvency of a partner.
Z. On the retirement of a partner.
Which of the following is/are the correct options?

A
X and Y

B
X and ?

C
Y and Z

D
X, Y and Z

Solution

An existing partnership may get be dissolved,all due to the reasons:
Death of the partner : death may be the reason for dissoultion of the firm as the partners have interset in each other.
Insolvency of the partner : Due to bankrupcty or insolvency the partner ma not be able to bear losses and liablity is more than the assets in the partnership may lead to dissolution of partnership of the firm.
On retirement of a partner : On retirement of the partner the partnership the partnership firm gets dissolved to form new partnership deed and form new partnership.
Question 2
1 / -0

A partner may apply to the court for dissolution of the firm on _____________.

A
insanity of a partner

B
misconduct of a partner

C
perpetual losses in business

D
all of the above

Solution

If a partner has become of unsound mind in which case the suit may be brought as well by the next friend of the partner who has become of unsound mind as by any other partner.
If there is any misconduct by a partner other than the suing partner due to which a firm suffered losses, then the court may order the dissolution of the firm. Misconduct or guilty of conduct which is likely to affect prejudicially the carrying on of the business. Then the other partner can sue the partner for misconduct.

In case the business of the firm cannot be carried on save as a loss or on any ground which renders it just and equitable that the firm should be dissolved.
Hence, option D is correct.
Question 3
1 / -0

Good will of the business of a partnership firm is the property of _________.

A
partners

B
partner who gave his property to firm

C
partnership firm

D
none of the above

Solution

A business builds up some reputation after it has continued for some time . If the reputation is good, the firm will come to acquire a fixed clientele in the sense that a number of customers will automatically make their purchases from the firm . This is a very valuable asset even if one can not touch or see it. The asset is known as goodwill.
Question 4
1 / -0

Which property will be the property of a firm?

A
The movable and immovable property of the firm

B
Property brought in by a partner and is vested in the firm

C
Property brought in by a partner and is being used in partnership business

D
Both a and b

Solution

Option d is the correct answer .
Question 5
1 / -0

In a partnership firm of 5 persons. Four persons became insolvent. The firm will ___________.

A
dissolve

B
will look out for other partners

C
will continue

D
none of the above
Question 6
1 / -0

There can not be any partnership where a business is carried on ____________.

A
with a benevolent purpose

B
where any one of the partners is entitled to total profit

C
a and b

D
where there is only one partner

Solution

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

The court may not dissolve the firm in case of ____________.

A
insanity of a partner

B
permanent in capability of a partner

C
retirement of a partner

D
misconduct of a partner

Solution

At the suit of a partner, the Court may dissolve a firm on any of the following grounds, namely:-
(a) that a partner has become of unsound mind, in which case the suit may be brought as well by the next friend of the partner who has become of unsound mind as by any other partner.
(b) that a partner, other than the partner suing, has become in any way permanently incapable of performing his duties as partner.
(c) that a partner, other than the partner suing, is guilty of conduct which is likely to affect prejudicially the carrying on of the business regard being had to the nature of the business.
(d) that a partner, other than the partner suing, wilfully or persistently commits breach of agreements relating to the management of the affairs of the firm of the conduct of its business; or otherwise so conducts himself in matters relating to the business that it is not reasonably practicable for the other partners to carry on the business in partnership with him.
(e) that a partner, other than the partner suing, has in any way transferred the whole of his interest in the firm to a third party, or has allowed his share to be charged under the provisions of rule $$49$$ of Order XXI of the First Schedule to the Code of Civil Procedure, $$1908$$, or has allowed it to be sold in the recovery of arrears of land revenue or of any dues recoverable as arrears of land revenue due by the partner.
Question 8
1 / -0

For the existence of a partnership there must be an association of _________.

A
two or more persons

B
one person only

C
minimum 5 persons

D
minimum 7 persons

Solution

For the existence of a partnership, there must be an association of two or more persons, this statement is true, it is a legal form of business operation between two or more individuals who share management and profits. All members share both profits and liabilities equally and the individuals are personally responsible for the debts of the partnership.
Thus the correct answer is A.
Question 9
1 / -0

A and B are the partners of a partnership firm X. X dissolve the property of X is ____________.

A
qf A and B

B
qf X

C
af A and B and X

D
none of the above
Question 10
1 / -0

True Test of existence of partnership is ____________.

A
mutual agency

B
sharing of profits

C
sharing of losses

D
all of the above

Solution

The true test of partnership is the existence of Mutual Agency relationship which means the capacity of a partner to bind other partners by his acts done in firm’s name and also bound by the acts of other partners. The main element of the partnership is sharing of profit but it is not a conclusive proof of partnership.
Thus the correct answer is A.

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Steps involved in Establishing Business Test 16

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Steps involved in Establishing Business Test 16

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SHARING IS CARING

Question 1

X and Y

X and ?

Y and Z

X, Y and Z

Solution

Question 2

insanity of a partner

misconduct of a partner

perpetual losses in business

all of the above

Solution

Question 3

partners

partner who gave his property to firm

partnership firm

none of the above

Solution

Question 4

The movable and immovable property of the firm

Property brought in by a partner and is vested in the firm

Property brought in by a partner and is being used in partnership business

Both a and b

Solution

Question 5

dissolve

will look out for other partners

will continue

none of the above

Question 6

with a benevolent purpose

where any one of the partners is entitled to total profit

a and b

where there is only one partner

Solution

Question 7

insanity of a partner

permanent in capability of a partner

retirement of a partner

misconduct of a partner

Solution

Question 8

two or more persons

one person only

minimum 5 persons

minimum 7 persons

Solution

Question 9

qf A and B

qf X

af A and B and X

none of the above

Question 10

mutual agency

sharing of profits

sharing of losses

all of the above

Solution

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