Tag: partnership deed

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

To avoid misunderstanding between the partners, the partners need  _________________.

  1. clear mutual understanding

  2. clear communication between partners

  3. clear agreement of terms and conditions

  4. clear objectives
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A clear agreement of terms and conditions is essential to define the rights, duties, and obligations of partners, thereby preventing future misunderstandings.

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

The application of the registration of the firm should be signed by ____________.

  1. any one of the partner

  2. two or more partners

  3. all the partners of the firm

  4. partner that represents all other partners
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The registration application must be signed by all partners of the firm to ensure unanimous consent. This requirement prevents any single partner or subset of partners from registering the firm without others' knowledge or agreement.

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

The consequences of non-registration of a firm are ______________.

  1. a partner of an unregistered firm cannot file a suit against the firm or other partners,

  2. the firm cannot file a suit against third parties

  3. the firm cannot file a case against the partners

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Non-registration leads to several disabilities, including the inability of the firm or its partners to file suits against third parties or each other to enforce contractual rights.

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

__________ constitutes as an evidence of agreement.

  1. Oral agreement

  2. Written agreement

  3. Mutual understanding

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

A written agreement (partnership deed) serves as formal, concrete evidence of the terms and conditions agreed upon by the partners.

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

Partnership is an agreement between _______________.

  1. entities in a business

  2. two people

  3. organisations

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

A partnership is defined as 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.

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 are included in a partnership deed?

  1. Duties and obligations of the partners

  2. Distribution of profits and losses

  3. Terms governing admission,retirement and expulsion of a partner

  4. All of the Above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A partnership deed typically covers all operational aspects, including duties, profit distribution, and procedures for changes in the partnership structure.

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

Partnership business in India is governed by India Partnership Act of ____________.

  1. $1913$
  2. $1932$
  3. $1984$
  4. $1928$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Indian Partnership Act was enacted in 1932 to govern partnership businesses in India. It replaced the previous provisions that were part of the Indian Contract Act of 1872.

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

In the absence of an agreement profit and loss are divided by partners in the ratio of __________.

  1. capital put by members

  2. equally amongst all the partners

  3. time devoted by each partners

  4. none of these.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to the Indian Partnership Act 1932, if there is no partnership deed or agreement specifying profit sharing, profits and losses must be shared equally among all partners regardless of their capital contribution.

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

An unregistered firm can bring an action in criminal court against ________________.

  1. a partner who steals the property of the partnership firm

  2. a partner who purposely damages the property of the partnership firm

  3. A&B

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

While an unregistered firm faces restrictions in civil courts regarding contract enforcement, it is not barred from initiating criminal proceedings. Partners can file criminal complaints for theft or criminal breach of trust against other partners.