Tag: partnership 1 - meaning, definition, characteristics and kinds

Quizzes (3) Questions (96)

Questions Related to partnership 1 - meaning, definition, characteristics and kinds

Multiple choice business organisation and correspondence partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

The Court may not dissolve the firm in case of __________.

  1. permanent in capability of a partner

  2. insanity of a partner

  3. misconduct of a partner

  4. retirement of a partenr
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The retirement of a partner does not necessarily lead to the dissolution of the firm, as the remaining partners can continue the business under a new agreement.

Multiple choice business organisation and correspondence partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

Which of the following is/are disadvantage of partnership firm?

  1. Unlimited Liability of partners.

  2. The duration of the partnership is always uncertain.

  3. The partners should be like minded, have a common objective, be large hearted, have a cool temperament should not unnecessarily cause friction and confusion among the partners.

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

Unlimited liability, uncertain duration, and the need for high interpersonal compatibility are all recognized disadvantages of a partnership firm.

Multiple choice business organisation and correspondence partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

Discharge of contract due to insolvency _____________________.

  1. Discharge by mutual agreement

  2. Discharge by lapse of time

  3. Discharge by operation of law

  4. Discharge by impossibility.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When a partner is declared insolvent, the contract is discharged by operation of law, as the legal status of the partner changes.

Multiple choice business organisation and correspondence partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

A partner of a trading or non trading firm signs a Negotiable instrument liability incurs in _____________.

  1. The name of the firm

  2. In the name of partner

  3. Both a & b

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

When a partner signs a negotiable instrument on behalf of the firm, the firm incurs the liability, provided the partner has the authority to do so.

Multiple choice business organisation and correspondence partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

Which of these acts are within the implied authority?

  1. Settlement of accounts with third parties who deal with the Firm.

  2. Open a bank account on behalf of the Firm in the Partner's own name.

  3. Compromise or relinquish any claim or portion of claim by the Firm.

  4. Submit to arbitration, a dispute relating to the business of the Firm.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Settling accounts with third parties is a standard part of the implied authority of a partner in the ordinary course of business.

Multiple choice business organisation and correspondence partnership 1 - meaning, definition, characteristics and kinds types of partnership types of partnerships dissolution of partnership

A Partner may be expelled from the Firm by any majority of the Partners _____________.

  1. in good faith

  2. based on the contract between Partners

  3. either (a) or (b)

  4. both (a) and (b).
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A partner can be expelled if the expulsion is in good faith and is authorized by the contract between the partners.