Tag: registration of partnership firm

Questions Related to registration of partnership firm

Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing to _________ of his intention to dissolve the firm.

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

  1. Any one of the partner

  2. All the other partners

  3. Two partners

  4. Three partners

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Correct Option: B
Explanation:
The partnership which is started at the will of the partners where the firm stands dissolved whenever the partners want it to as there is no fixed period or provision regarding the business duration and determination of the firm. Such a type of partnership is known as partnership at will. Any partner can dissolved the firm by giving a prior notice regarding the dissolution mentioning a legitimate reason behind the dissolution.

Registration of partnership is not compulsory but registration of company is __________.

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

  1. Optional

  2. Compulsory

  3. Compulsory in some cases

  4. Optional but compulsory in some cases

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Correct Option: B
Explanation:

A company is a separate legal artificial body with a name and common seal by the law. According to the Companies Act, 2013, it is compulsory for all the companies to register under the companies act with their memorandum of association.

Where a partnership firm is formed for a particular undertaking or undertakings, it proceeds to carry on other undertaking or undertakings, in that event the mutual ________ of the partners in respect of the other adventures or undertakings are the same as those in respect of the original adventures of undertakings.

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

  1. Rights

  2. Duties

  3. Rights and duties

  4. Duties & liabilities

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Correct Option: C
Explanation:

 A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. So if the partnership is started for a specific undertaking, then it is the rights and duties of all the partners to carry on that undertaking with respect to all the other relevant undertakings. 

A partner claim interest on capital __________.

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

  1. Even if there is loss

  2. If there is profit

  3. If there is profit and there is an agreement to pay it

  4. Whether there is profit or loss to the firm

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Correct Option: C
Explanation:

According to the Partnership Act 1932, every partner has an equal right to participate in the conduct and management of the business and has an equal share in the profit or loss of the firm, mentioned otherwise. 

Partner shall indemnify the firm for any loss caused to it but his _______ in the conduct of the firm's business.

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

  1. Negligence

  2. Interference

  3. Willful neglect

  4. Honesty

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Correct Option: C
Explanation:

According to the Partnership Act 1932, the partners those are in agreement with the partnership deed who are taking part in the conduct of business and management of the firm are not entitled to receive any remuneration of any sort. 

ABC & Co., a firm consists of three partners A, B and C having one-third share each in the firm. According to A and B, the activities of C are not in the interest of the partnership and thus want to expel C from the firm. Advise A and B whether they can do so ___________.

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

  1. Yes

  2. No

  3. A & B have to retire from the firm

  4. Yes, but subject to permission of C

Show answer
Correct Option: A
Explanation:

According to the Partnership Act 1932, the partners those are in agreement with the partnership deed can expel any partner with majority if the acts of the partners are not in the good faith of the business. Therefore, A and B can do so under partnership act 1932. 

Which of the following is not covered by the term "Property of the firm".

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

  1. Property and rights and interest in property originally brought into the stock of the firm

  2. Property acquired by or for the firm

  3. Goodwill of the business

  4. Property of the partners

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Correct Option: D
Explanation:

Property of the partners is not covered by the term "Property of the firm". Partners can carry on the business of partnership firm only with the properties which belongs to the firm and not with their personal property. Partners of the firm belongs to a  separate domain from the property of the partners,

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

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

  1. Equally

  2. According to the seniority of age

  3. According to capital contribution

  4. According to qualification.

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Correct Option: A
Explanation:

If profit sharing ratio is not specified in the partnership deed, then the profit is shared equally. The partners can share profits in any agreed ration but in the absence of an agreement, they share the property equally, that means,the amount of the profit received by each of the partners will be equal.

If a firm wants to register itself, it will go to "______".

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

  1. Registrar of Firms

  2. Registrar of Companies

  3. Court

  4. Any of these

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Correct Option: A
Explanation:

 If a firm wants to register itself, it will go to Registrar of Firms. An application and the prescribed fees are required to be submitted to the Registrar of Firms of the State in which the firm is situated in order to register the firm.

To constitute a partnership agreement, it _____________.

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

  1. Must be in writing

  2. Can be oral or written

  3. Either oral or written

  4. Only oral

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Correct Option: B
Explanation:

To constitute a partnership agreement, it can be oral or written. In absence of partnership agreement, partners share the profits and losses equally. Partnership Agreement can be defined as a contract between two or more business partners that is used to establish the responsibilities, and profit and loss distribution in a partnership firm.