Steps involved in Establishing Business Test 31

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Steps involved in Establishing Business Test 31

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Weekly Quiz Competition

Question 1
1 / -0

Every partner is entitled to share in the profits ________, unless different proportions are stipulated.

A
In proportion of capital

B
Equally

C
In proportion to balance in current accounts

D
$$50\%$$ profit equally and remaining $$50\%$$ in capital ration

Solution

According to the Partnership Act 1932, every partner has an equal right to participate in the conduct and management of the business and has an equal share in the profit or loss of the firm, mentioned otherwise.
Question 2
1 / -0

Which of the following is NOT covered by general duties of partners?

A
To carry on the business of the firm to the greatest common advantage of the firm

B
To be just and faithful to each other

C
To arrange for audit of accounts of the firm

D
To keep and render true, proper and correct accounts of the partnership

Solution

In a partnership business, the partners cannot arrange for the audit of the accounts of the firm that is done by the Accounts authority of that company.
Question 3
1 / -0

Every partner is bound to carry on the business of the firm _________.

A
To the advantage of the working partner

B
For reasonable advantage

C
For the advantage of society

D
To the greatest common advantage

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 basic existence of partnership agreement lies in 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. Therefore, every partner is bound to carry on the business of the firm to the greatest common advantage.
Question 4
1 / -0

In the absence of an agreement to the contrary, every partner is bound to share losses ______________.

A
Equally

B
In proportion to capital

C
In proportion to their private assets

D
$$50\%$$ loss equally and balance $$50\%$$ in their capital ratio

Solution

According to the Partnership Act 1932, in the absence of an agreement to the contrary, every partner has an equal right to participate in the conduct and management of the business and has an equal share in the profit or loss of the firm, mentioned otherwise.
Hence, A is the correct option.
Question 5
1 / -0

In good faith and based on the contract between partners, a partner may be expelled from the firm by ______________.

A
Unanimous consent of all the partners

B
Majority of the partners

C
Any of the working partners

D
Any of the dormant partners

Solution

According to the Partnership Act 1932, the partners those are in agreement with the partnership deed who are taking part in the conduct of business and management of the firm and those who are dormant partners can decide on majority whether to expel a partner or not otherwise in good faith.
Question 6
1 / -0

Subject to contract between the partners, for taking part in the conduct of the business, a partner is _________.

A
Not entitled to receive any remuneration

B
Entitled to reasonable remuneration

C
Entitled to remuneration based on profits

D
Entitled to remuneration in the ratio of their capital

Solution

According to the Partnership Act 1932, the partners those are in agreement with the partnership deed who are taking part in the conduct of business and management of the firm are not entitled to receive any remuneration of any sort.
Question 7
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 8
1 / -0

Which of the following is not a right of partner?

A
Every partner has a right to continue in the partnership and not to be expelled from it

B
A partner has power to act in an emergency for protecting the firm from loss

C
Every partner is entitled to share in the profits equally

D
Every partner is entitled to the introduction of a new partner into the firm without consent other partner

Solution

According to the Partnership Act 1932, a partner has no right to any introduction as a new partner into the firm without the consent of other partners.
Hence, option (D) is the correct answer.
Question 9
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 10
1 / -0

Every partner is bound to indemnify the firm for any loss caused by ________ in the conduct of the business.

A
Fraud

B
Misrepresentation

C
Mistake

D
Undue influence

Solution

According to the Partnership Act 1932, the liability of the partners are unlimited and they are bound to compensate with the loss of the firm that is caused by the fraud in the conduct of business.

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Steps involved in Establishing Business Test 31

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Steps involved in Establishing Business Test 31

Score

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SHARING IS CARING

Question 1

In proportion of capital

Equally

In proportion to balance in current accounts

$$50\%$$ profit equally and remaining $$50\%$$ in capital ration

Solution

Question 2

To carry on the business of the firm to the greatest common advantage of the firm

To be just and faithful to each other

To arrange for audit of accounts of the firm

To keep and render true, proper and correct accounts of the partnership

Solution

Question 3

To the advantage of the working partner

For reasonable advantage

For the advantage of society

To the greatest common advantage

Solution

Question 4

Equally

In proportion to capital

In proportion to their private assets

$$50\%$$ loss equally and balance $$50\%$$ in their capital ratio

Solution

Question 5

Unanimous consent of all the partners

Majority of the partners

Any of the working partners

Any of the dormant partners

Solution

Question 6

Not entitled to receive any remuneration

Entitled to reasonable remuneration

Entitled to remuneration based on profits

Entitled to remuneration in the ratio of their capital

Solution

Question 7

Systematically

Diligently

Sincerely

Effectively

Solution

Question 8

Every partner has a right to continue in the partnership and not to be expelled from it

A partner has power to act in an emergency for protecting the firm from loss

Every partner is entitled to share in the profits equally

Every partner is entitled to the introduction of a new partner into the firm without consent other partner

Solution

Question 9

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 10

Fraud

Misrepresentation

Mistake

Undue influence

Solution

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