Tag: elements of business

Questions Related to elements of business

At the time when a new partner enters, Good will _________________________.

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. belongs to all partners, new and old

  2. belongs only to the new partner who is going to be admitted.

  3. belongs only to the old partner who have credited it

  4. none of the above

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Correct Option: C

If the behavior of a person shows that he is a partner in a firm (when actually he is not), such a person is 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. Nominal partner

  2. Sleeping partner

  3. Sub-partner

  4. Partner by estoppel

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Correct Option: D

A _________ partner is like an undisclosed principal.

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

  2. active

  3. nominal

  4. sub partner

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Correct Option: A

Towards goodwill a new partner at the time of admission contributed ___________________.

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. in cash

  2. does not pay cash

  3. may or may not pay cash for good will

  4. none of these

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Correct Option: C

For a minor to be admitted to a partnership firm _____________.

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. all the partners should agree

  2. there should be $2$ major partners

  3. minor can not be admitted in a partnership firm

  4. both a & b

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Correct Option: D

As per partnership Act Minor on becoming major _______________.

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. liability becomes unlimited

  2. liability becomes unlimited only when he accepts the partnership

  3. he has only rights and no liabilities

  4. none of the above

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Correct Option: B

A minor has some rights against his estate diving the age in which he is minor they are ___________.

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. defending a suit

  2. defending him in prosecution

  3. to meet his marriage expenses

  4. all of the above.

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Correct Option: C

New incoming partner pays his share of goodwill in cash, and profit sharing ratio of old partner is changed, Goodwill be distributed among old partners ____________.

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. as their old profit ratio

  2. according to new ratio

  3. according to sacrifice ratio

  4. none of these

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Correct Option: A

Parties are not competent to contract if any of them 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. minor

  2. insane

  3. declared

  4. all the above

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Correct Option: D

Agency by Estoppel means ____________.

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. a person is being posed by the person as his agent

  2. a person himself believes that he is the agent of some other person.

  3. a person who becomes the agent because of some kind of necessary requirement.

  4. none of the above.

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Correct Option: A