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

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

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

Upon dissolution, the firm's assets shall be first applied in paying the debts of the firm to third parties, shall thereafter be applied in payment of partners loan, shall be applied in ___________.

  1. In paying the debts of the firm to third parties

  2. Payment of partners loan

  3. Payment of partners capital

  4. Distribution of surplus to partners in profit sharing ratio
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Following the payment of third-party debts and partners' loans, the next priority is the repayment of partners' capital.

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

After dissolution of firm, any partner or his representative may restrain any other partner or his representative from carrying of similar business in the Firm Name or by using Firm's property for own benefit until _______________.

  1. The affairs of the firm are fully wound up

  2. Public notice of dissolution is given

  3. Dissolution deed is signed by all partners

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

Under the Indian Partnership Act, partners have the right to use the firm's name and property for winding up affairs after dissolution. Restraining others from using these for personal benefit is a protective measure that lasts until the winding-up process is complete.

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

Nitin, a partner of a firm dealing in computers gives an order for win worth Rs. $10,000$ in firm's name. Discuss the liability?

  1. The firm is liable to pay Rs. $10,000$

  2. The firm can sale the wine to other

  3. It does not relate to normal business of the firm. The firm will not be bound by it as act is not within implied authority of a partner
  4. The firm is liable to pay Rs. $10,000$ and if firm fails to pay then only Nitin will be liable to pay the amount
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Implied Authority is the authority that is not conferred by the mutual agreement between the partners and which is not bind on other partners. 

This authority is acted on the ordinary course of business and the firm is bound by such authority when the act is done in a normal way of carrying on the firm's business. 
These authority is also known as ostensible authority or apparent authority. Since the act is not related to the ordinary business of the firm. The firm is not liable to pay the amount. 

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

If at the time of admission partner pays premium then on dissolution, he is entitled to demand the return of a proportion of the premium if the partnership was for a fixed term and was dissolved before the expiry of that term, unless dissolution was caused by ___________________.

  1. Agreement

  2. Misconduct of the party seeking return of the premium

  3. Death of a partner

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

A partner is generally entitled to a refund of premium if the partnership is dissolved prematurely. However, this right is forfeited if the dissolution is caused by the partner's own misconduct, by an agreement that excludes such refunds, or by the death of a partner.

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

Which of the following are grounds for compulsory dissolution of the firm by court?

  1. Insanity of a partner

  2. Misconduct of a partner

  3. Perpetual losses in business

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

Insanity of a partner is one of the grounds for compulsory dissolution of the firm by court. Dissolution of partnership implies not only a complete closure or termination of partnership business but it also includes any change in the existing agreement among the partners due to a change in the number of partners.

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

Which of the following are the conditions needed to prove an act of a partner is an act of a partnership firm?

  1. Such an act be done in a ordinary course of a partnership firm

  2. It must be related to the business of the firm

  3. Act must have been done in the name and on behalf of the firm

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

Every act of the partners must be done according and related to the firm. Partner is an agent of the firm and his other partners for the purpose of the business of the partnership, and the acts of every partner who does any act for carrying on in the usual way business of the kind carried on by the firm of which he is a member bind the firm and his partners, so it should be done according to the business. An act or instrument relating to the business of the firm done or executed in the firm name, or in any other manner showing an intention to bind the firm, by any person there to authorised, whether a partner or not, is binding on the firm and all the partners.

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

Partnership at will can be dissolved by any partner by ___________.

  1. communicating with the principal

  2. not allowed

  3. giving due notice to that effect to all other partners

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

A partnership at will can be dissolved by any partner by giving a formal notice of their intention to dissolve the partnership to all other partners.

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

At the time of dissolution of partnership the main account to be looked would be __________.

  1. salary

  2. revaluation

  3. drawings

  4. realization
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Upon the dissolution of a partnership, a 'Realization Account' is prepared to determine the profit or loss on the sale of assets and settlement of liabilities.

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

In a partnership firm of 5 persons. Four persons became insolvent. The firm will ___________.

  1. dissolve

  2. will look out for other partners

  3. will continue

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

If all but one partner become insolvent, the partnership firm cannot continue and must be dissolved, as a partnership requires at least two people.

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

A and B are the partners of a partnership firm X. X dissolve the property of X is  ____________.

  1. qf A and B

  2. qf X

  3. af A and B and X

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

Upon dissolution, the property of the firm is used to pay off the firm's debts, and any remaining balance is distributed among the partners according to their share.