Steps involved in Establishing Business Test 28

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Steps involved in Establishing Business Test 28

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Weekly Quiz Competition

Question 1
1 / -0

Where the partnership is at will, the firm is dissolved as from ______________________-.

A
The date mentioned in the notice as the date of dissolution and if date is not mentioned in notice then such notice is void

B
The date of notice whether date of dissolution is mentioned in notice or not

C
The date mentioned in the notice as the date of dissolution and if no such date is mentioned, as from the date of communication of the notice

D
The date when notice is actually received by all other partner

Solution

The partnership is started at the will of the partners where the firm stands dissolved whenever the partners want it to as there is no fixed period or provision regarding the business duration and determination of the firm. Such a type of partnership is known as a partnership at will.
Any partner can dissolve the firm by giving a prior notice regarding the dissolution mentioning a legitimate reason behind the dissolution.
Hence, option (C) is the correct answer.
Question 2
1 / -0

A partnership may be _________.

A
For particular adventure

B
For fixed period

C
A partnership at will

D
Any 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. The partnership can be started for a specific purpose and stand dissolved after the completion of the purpose, it can be started for a fixed period in order to earn profits and even partnership can be started at the will of the partners where the firm stands dissolved whenever the partners want it to.
Question 3
1 / -0

Which of the following does not reflect the mutual agency principle in partnership?

A
The partner is both agent & principle

B
A partner can, by his act bind other partner and in turn is bound by the acts of other partners

C
All partners should actively participate in the business

D
Business may be managed by one or more partners

Solution

Mutual agency relationship which refers to the mutual relationship and understanding between the partners of a business where every partner acts as an agent as well as a boss for the other partner. So it is not necessary for all the partners to participate in the business. Even an act by one partner is bound on all other partner.
Question 4
1 / -0

If the partnership agreement, is in ________ it is known as a 'Partnership Deed'.

A
Verbal

B
Written

C
Implied

D
Verbal, written or implied

Solution

According to the Partnership Act, 1932 the relation between the partners of a partnership firm can only be created through a mutual agreement between the partners which will be presented in the manner of contract that can be verbal as well as written also. But nowadays written is given more preference due to legal requirements. The written partnership agreement which has all rules and regulations implied on all the partners mention thereof is called partnership deed.
Question 5
1 / -0

Which of the following is/ are disadvantage of partnership firm?

A
Unlimited Liability of Partners

B
The duration of the partnership is always uncertain

C
The partners should be like minded, have a common objective, be large hearted, have a cool temperament, should not unnecessarily cause friction and confusion among the partners

D
All of 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. The disadvantages of a partnership firm are
1. In a partnership firm, the partners have unlimited liability which means in the case of insolvency of the firm the credits can claim their outstanding on the personal assets of the partners.
2. The life of a partnership firm depends upon the life of its partners as there is no separate legal entity.
3. There are always some probability of disputes between the partners due to diversification of culture and background.
Question 6
1 / -0

Where the partnership is at will, the firm may be dissolved by __________ giving notice in writing to all the other partners of his intention to dissolve the firm.

A
Any partner

B
Two partners

C
Three partners

D
Four partners

Solution

The partnership is started at the will of the partners where the firm stands dissolved whenever the partners want it to as there is no fixed period or provision regarding the business duration and determination of the firm. Such a type of partnership is known as a partnership at will. Any partner can dissolve the firm by giving a prior notice regarding the dissolution mentioning a legitimate reason behind the dissolution.
Hence, option (A) is the correct answer.
Question 7
1 / -0

Who of the following can enter into partnership agreement ($$\checkmark$$) and who cannot $$(x)$$?
P. Minors
Q. Company
R. Lunatics
S. Insolvent
Select the correct answer from the options given below.

A
$$P - \checkmark, Q - \checkmark, R - \checkmark, S - x$$

B
$$P - x, Q - \checkmark, R - x, S - x$$

C
$$P - \checkmark, Q - \checkmark, R - \checkmark, S - \checkmark$$

D
$$P - x, Q - x, R - x, S - x$$

Solution

According to the Partnership Act, 1932 , any person who is below the age of eighteen, any person who has an artificial body by law, any person who is mentally ill and any person who is declared bankrupt cannot be admitted as a partner in a partnership firm.
Question 8
1 / -0

A minor may be admitted to the benefits of a partnership with the consent of ___________.

A
Majority partners

B
All other partners

C
$$75\%$$ partners

D
Any other one partner when there are four partners

Solution

According to the Partnership Act, 1932 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 firms loss.
Question 9
1 / -0

A minor can be admitted to the benefits of partnership, which means _______.

A
He can have a share in the loss only

B
He can have a share in the profit only

C
He cannot have any share in profit or loss

D
He can have a share in the profits only if other partner by majority agrees to give it

Solution

According to the Partnership Act, 1932 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 firms' loss.
Question 10
1 / -0

A partnership is deemed to be a partnership at will when.
$$1$$. No fixed period has been agreed upon for the duration of partnership.
$$2$$. There is no provision made as to the determination of partnership in any other way.
Select the correct answer from the options given.

A
$$1$$ only

B
$$2$$ only

C
Both $$1$$ & $$2$$

D
Neither $$1$$ nor $$2$$

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. The partnership can be started at the will of the partners where the firm stands dissolved whenever the partners want it to as there is no fixed period or provision regarding the business duration and determination of the firm. Such a type of partnership is known as partnership at will.

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Steps involved in Establishing Business Test 28

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Steps involved in Establishing Business Test 28

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SHARING IS CARING

Question 1

The date mentioned in the notice as the date of dissolution and if date is not mentioned in notice then such notice is void

The date of notice whether date of dissolution is mentioned in notice or not

The date mentioned in the notice as the date of dissolution and if no such date is mentioned, as from the date of communication of the notice

The date when notice is actually received by all other partner

Solution

Question 2

For particular adventure

For fixed period

A partnership at will

Any of the above

Solution

Question 3

The partner is both agent & principle

A partner can, by his act bind other partner and in turn is bound by the acts of other partners

All partners should actively participate in the business

Business may be managed by one or more partners

Solution

Question 4

Verbal

Written

Implied

Verbal, written or implied

Solution

Question 5

Unlimited Liability of Partners

The duration of the partnership is always uncertain

The partners should be like minded, have a common objective, be large hearted, have a cool temperament, should not unnecessarily cause friction and confusion among the partners

All of above

Solution

Question 6

Any partner

Two partners

Three partners

Four partners

Solution

Question 7

$$P - \checkmark, Q - \checkmark, R - \checkmark, S - x$$

$$P - x, Q - \checkmark, R - x, S - x$$

$$P - \checkmark, Q - \checkmark, R - \checkmark, S - \checkmark$$

$$P - x, Q - x, R - x, S - x$$

Solution

Question 8

Majority partners

All other partners

$$75\%$$ partners

Any other one partner when there are four partners

Solution

Question 9

He can have a share in the loss only

He can have a share in the profit only

He cannot have any share in profit or loss

He can have a share in the profits only if other partner by majority agrees to give it

Solution

Question 10

$$1$$ only

$$2$$ only

Both $$1$$ & $$2$$

Neither $$1$$ nor $$2$$

Solution

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