Tag: registration of partnership

Quizzes (0) Questions (83)

Questions Related to registration of partnership

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

The relationship of partnership arises out of ________________.

  1. an agreement

  2. statue

  3. operation of law

  4. both an agreement and statue
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. Therefore, it arises from an agreement.

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 maintained 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

A partnership deed outlines the terms of the business relationship. While it includes names, addresses, and firm details, the age of the partners is not a mandatory requirement for the deed itself.

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. article of association

  3. memorandum of association

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

The written agreement that governs the relationship between partners is formally known as the partnership deed.

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

Registration of partnership is ________.

  1. Compulsory

  2. Not compulsory

  3. Compulsory if its turnover exceeds specified amount

  4. Compulsory if it is liable to tax audit under the Income Tax Law.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the Indian Partnership Act, the registration of a partnership firm is optional, not compulsory. Firms can operate without registration, though they face certain legal disadvantages.

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

If the partnership agreement is in __________ it is known as a "Partnership Deed".

  1. Verbal

  2. Written

  3. Implied

  4. Verbal, written or implied
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A partnership deed specifically refers to the document when the partnership agreement is in written form.

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

While capital contribution, profit sharing, and dissolution methods are standard clauses in a partnership deed, the total assets of an individual partner are not a required disclosure in the deed.

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 essential of partnership deed?

  1. It should be made legally

  2. It should be enforceable

  3. It should be a written agreement between two or more persons

  4. It should be forbidden by law
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A partnership deed is essentially the written agreement between two or more persons to carry out a business and share profits.

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

Partnership Deed is also called as ______.

  1. partnership document

  2. articles of partnership

  3. both of these

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

The partnership deed is also commonly referred to as the articles of partnership, which sets out the rules governing 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 purpose is a form in which all the Partners are signed?

  1. Pronote

  2. Partnership Deed

  3. MOA

  4. None
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The partnership deed is the formal document that outlines the terms of the partnership and requires the signatures of all partners to be valid.

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 partnership deed partners are entitled to ________.

  1. salary

  2. interest on loan

  3. Interest on capital

  4. share of profits in capital ratio
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the absence of a partnership deed, the Indian Partnership Act specifies that partners are entitled to interest on loans provided to the firm at a rate of 6% per annum. They are not entitled to salary or interest on capital.