Tag: elements of business

Questions Related to elements of business

Every partner is bound to attend ______ to his duties in the conduct of the business.

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. Systematically

  2. Diligently

  3. Sincerely

  4. Effectively

Show answer
Correct Option: B
Explanation:

Every partner is bound to attend diligently to his duties in the conduct of the business. Every partner is an agent of the partnership firm. Individuals have to enter into a contract to become partners. The business in the partnership firm can be carred on by all the partners or any one of them acting for all.

A partner who contributed capital in the Finn but does not actively participate in the working of the business 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. Active Partner

  2. Sleeping Partner

  3. Sub-Partner

  4. Nominal Partner

Show answer
Correct Option: B
Explanation:

A partner who contributed capital in the Finn but does not actively participate in the working of the business is called sleeping partner. Sleeping partner does not get involved in the management of the business. Only capital is contributed by the sleeping partner in a partnership entity.