Tag: partnership 3 - registration of a partnership firm

Quizzes (2) Questions (83)

Questions Related to partnership 3 - registration of a partnership firm

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Partnership agreement can be __________.

  1. Oral

  2. Written

  3. Oral or written

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Partnership agreement can be oral or written. Some individuals have to enter into a contract or agreement in order to become partners in a partnership firm. Partnerships are the only business entities that can be formed by oral agreement as well as written agreement.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

When it is not registered, a partnership firm is ________.

  1. deemed to be illegal organization and disallowed to carry on business

  2. allowed to carry on business subject to payment of penalty

  3. allowed to carry on business subject to certain disabilities

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
If the partnership firm is not registered, it has to remain deprived of following advantages:
  1. No partner can take any legal action against any other partner.
  2. No partner can intimate proceedings against the firm in order to get his rights.
  3. The firm, too,cannot start proceedings against any partner.
  4. The firm cannot proceed against other parties, while the other parties can proceed against the firm.
Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Which of the following is not required to be mentioned in the partnership deed?

  1. Age of partners

  2. Name of partners

  3. Address of partners

  4. Firm name
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

To become a partner it is not necessary to mention the age but  to become a partner you need to be a major and should be of sound mind . However, a minor can also become a partner. In such a scenario, all the partners should give their consent in order to admit a minor.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

The written agreement of partnership is called ________________.

  1. partnership deed

  2. articles of association

  3. memorandum of association

  4. certificate of incorporation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Partnership is created by an agreement between the parties. The agreement may be in writing or by words of mouth or implied by the conduct of the parties. However, it is always desirable for the partners to have the agreement in writing. 

The document in writing should contain the important terms of partnership as agreed upon by the partners themselves to avoid any future dispute. So the document in writing containing the terms and conditions as agreed between the partners is called partnership deed.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Which property will be the property of a firm?

  1. The movable and immovable property of the firm

  2. Property brought in by a partner and is vested in the firm

  3. Property brought in by partner and is being used in partnership business

  4. Both a and b
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subject to contract between the partners, the property of the firm includes all movable and immovable property, rights and interests in property originally brought into the stock of the firm, or acquired, by purchase or otherwise, by or for the firm or for the purposes and in the course of business of the firm, and includes also the goodwill of the business. And any property brought in by a partner and vested in the firm will be considered as the property of the firm.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Which of the following is not the requirement in Partnership deed?

  1. Capital contribution by each partner.

  2. Profit sharing.

  3. Total assets of the partner

  4. Method of dissolution
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

According to the provisions of the Indian partnership act. 1932, a partnership deed is an agreement which consists of the rights and responsibilities of the partners in the firm.

 It also includes capital contributed by the partner, profit sharing ratio, total assets of the partner.etc. It does not include the method of dissolution of the firm.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Voluntary registration is related with?

  1. HUF

  2. Partnership

  3. Sole-proprietorship

  4. Company
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Voluntary registration is related to partnership firm.

According to part 7 of the Indian Partnership Act 1932, the registartion of the partnership firm is not complusary i.e it is voluntary,but it is complusary in the state of Maharashtra for 1960.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Agreement to share profits in a partnership firm ___________.

  1. must be coupled with an agreement to share losses

  2. is same as agreement to share losses

  3. implies an agreement to share losses

  4. does not necessarily mean an agreement to share losses
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

As per Section $4$ of The Indian Partnership Act, $1932$ "Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Each person contributes money, property, labour or skill and expects to share in the profits and losses of the business.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

The partners enter into partnership through an agreement which may be _________.
(I)    Verbal
(II)   Written 
(III)  Implied 
 The correct answer is :-

  1. (II) only

  2. (I) or (II)

  3. (II) or (III)

  4. (I) or (II) or (III)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A partnership agreement can be formed through various methods, including verbal, written, or implied conduct, as the law does not mandate a specific format.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

When can the registration of the firm can be done?

  1. Prior to the formation of the firm

  2. At the time of formation of the firm

  3. Anytime during its existence

  4. Both B & C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Registration of a firm is optional and can be done at the time of formation or at any point during the existence of the partnership.