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

Share in partnership can be transferred by consent of ______ the partners.

  1. All

  2. Majority

  3. No consent required

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

Share in partnership can be transferred by consent of all the partners. Partners are the agents of the partnership firm who all carry on the business related activities in a partnership entity. A partner does not have any right to sell the share in partnership without the consent of all the partners.

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

What is a Partnership?

  1. An agreement between persons

  2. An association of person

  3. A body of individuals

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Partnership is an agreement between persons. Partnership is an association of 2 or more individuals but not more than 20 who agree to share the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all. 
Partnership can be defined as a type of unincorporated business organization  in which multiple individuals, called general partners, manage the business and are equally liable for its debts' other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments.

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

If profit sharing ratio is not specified in the partnership deed, then the profit is shared ________________.

  1. Equally

  2. According to the seniority of partners

  3. According to the capital contribution

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

If profit sharing ratio is not specified in the partnership deed, then the profit is shared equally. The partners can share profit in any ratio. But in the absence of an agreement, they share profits equally.