Tag: elements of business

Questions Related to elements of business

Who all can be co parceners in HUF____________.

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. daughters of family

  2. son's of family

  3. both a & b

  4. none of the above

Show answer
Correct Option: C

The _________ is responsible for doing all acts, matters and things as are required to be done by LLP as per the Act.

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. Designated Partner

  2. Active Partner

  3. Designated Director

  4. All the partners

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Correct Option: A

Robert is a Sleeping Partner in a Firm. He detected a mistake in the accounts of the Firm. So he wants to check the complete accounts of the Firm. But the other Partners objected it. Is the objection is valid?

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. Void, their objection is wrong.

  2. Valid, they can object.

  3. Valid, they have the right not to give the accounts to the Sleeping Partner.

  4. None of the above.

Show answer
Correct Option: A

Co-ownership is not always the result of an agreement; it may arise ________.

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. By the operation of law

  2. From status

  3. By the operation of law or from status

  4. None of the above

Show answer
Correct Option: C
Explanation:

Co-ownership refers to the division of ownership of something into two or more heads. This act can be passed through an agreement between the co-owners or even it can be done through the operation of law which will be bound on all the co-owners.

Identify which of the following statement is true and which is false?
(i) As relations of partners inter se are that of agency, no consideration is required to create the partnership,
(ii) Partnership and Joint Hindu Family both are created by status.
(iii) There is no restriction as to maximum number of members for HUF.
(iv) Registration is also required for HUF.
Select the correct answer from the options given.

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. (i)-True, (ii)-False, (iii)-True, (iv)-False

  2. (i)-False, (ii)-True, (iii)-False, (iv)-True

  3. (i)-True, (ii)-False, (iii)-False, (iv)-True

  4. (i)-False, (ii)-True, (iii)-True, (iv)-False

Show answer
Correct Option: A
Explanation:

(i) According to the partnership act, 1932, it is not necessary for the partners to register under any type of act. 

(ii) Both partnership and joint hindu family business is created by the relations between the members of the business. 
(iii) In joint hindu family business, there is no restriction for the maximum number of members in the business. 
(iv) In joint hindu family business registration depends upon the members of the business as there is no compulsory registration under this business by any law. 

A change in the nature of the business can only be brought about by the consent 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. Majority partners

  2. All the partners

  3. Any two partners

  4. Any five partners

Show answer
Correct Option: B
Explanation:

 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. Therefore, any change in the nature of the business can be brought forward only by the consent of all the partners mentioned in the partnership deed. 

How you will classify partner who do not invest or participate in the management of the firm but only give their name to the business or 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. Active or working partner

  2. Sleeping or dormant partner

  3. Nominal partner

  4. Partner in profits only

Show answer
Correct Option: C
Explanation:

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. 

According to the Partnership Act, Nominal partners are the partners who do not invest their money into the business and have no share in the profit or losses but they just give their name as the partner for their goodwill in the business.

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

Show answer
Correct Option: D
Explanation:
According to the Partnership Act, a partner by estoppel refers  to the partner who verbally or in written or through some conduct represents himself or knowingly permits himself to be represented as a partner in a firm and taking advantage of the goodwill of the firm. These kind of partners are liable to all the third parties arose due to them. Therefore, B is a partner by estoppel. 

A person, who, by words spoken or written or conduct represents himself or knowingly permits himself to be represented as a partner in the 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. Working partner

  3. Sub-partner

  4. Partner by estoppel

Show answer
Correct Option: D
Explanation:
According to the Partnership Act, a partner by estoppel refers  to the partner who verbally or in written or through some conduct represents himself or knowingly permits himself to be represented as a partner in a firm and taking advantage of the goodwill of the firm. These kind of partners are liable to all the third parties arose due to them. 

Which of the following partner can retire without giving public notice?

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. Active partner

  2. Sleeping or dormant partner

  3. Nominal partner

  4. Partner in profits only

Show answer
Correct Option: B
Explanation:

According to the Partnership Act, Sleeping or dormant partner are the partners who invest their money into the business and share the profit or losses but they do not participate in the functioning and management of the business. These partners can retire without giving a public notice to other partners.