Tag: elements of business

Questions Related to elements of business

When a minor attains majority, he is liable for _________.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. from the date of attaining majority

  2. all the liabilities

  3. only for liabilities which are dealt by him

  4. for all liabilities since the date of admission to the firm as a minor.

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Correct Option: D
Explanation:
He is not personally liable to third parties for the debts of the firm, on attaining majority, if he continues as a partner, his liability will become unlimited with effect from the date of his original admission into the firm. When a minor becomes major then within 6 months of his attaining the majority he has to elect whether he wants to be a partner or not he may give a public notice regarding his wish to be a partner or not but if he fails to give any notice then he is deemed to be a partner.

A sub-partner is a person ___________.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. who is sharing the profits of some partner.

  2. who does not invest and shares the profits

  3. who invests but does not work

  4. a partner who only gives his name for partnership

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Correct Option: A

A Minor in a Partnership is _________.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. personally liable

  2. having unlimited liability

  3. liable only when the firm is insolvent

  4. none of the above

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Correct Option: D

A Partner who has not entered into a Partnership agreement and conducts or represents himself as a Partner in a Firm is called _________.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. sleeping partner

  2. partner by estoppel

  3. working partner

  4. sub-partner.

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Correct Option: B

A person who represents himself to be a partner but in reality he is not so, is known as a __________.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. inactive partner

  2. partner by estoppel

  3. Partner by default

  4. legal partner

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Correct Option: B

Holding out partner is based on the principle of _______.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. protecting public interest

  2. Estoppel

  3. both a) & b)

  4. all of the above

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Correct Option: B

A Nominal partner gets _______.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. no share in profits

  2. equal share in profits

  3. share in profits proportionate to*contribution

  4. none of the above

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Correct Option: A

Dormant Partner is also known as ________.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. Sleeping Partner

  2. Active Partner

  3. Nominal Partner

  4. Sub-Partner.

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Correct Option: A

A introduces B to C as a Partner in his business. B, in fact, was not a Partner but he did not deny the statement. C advanced a loan to A. A could not repay the loan. C can hold B responsible for the repayment of loan because __________.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. B is a Sleeping Partner

  2. B is a Sub-Partner

  3. B is a Dormant Partner

  4. B is a Partner by Estoppel.

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Correct Option: D

Dormant partner ______________.

elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

  1. never takes part in business activities.

  2. is not liable for any act done by other partners.

  3. will not share losses of the firm.

  4. existence in partnership is invalid.

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Correct Option: A