Tag: partnership 2 - organisation, classification, rights, duties and liabilities of partners

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Questions Related to partnership 2 - organisation, classification, rights, duties and liabilities of partners

Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

Dinesh becomes a partner in the firm by agreement but never takes active part in the conduct of the business of the firm, in this situation he is known as a ________.

  1. Dormant Partner

  2. Nominal Partner

  3. Sub-partner

  4. Ostensible Partner
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A dormant or sleeping partner is one who contributes capital and shares profits but does not participate in the daily management of the firm.

Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

Which of the following statements is true?

  1. Two or more companies cannot enter into a contract of partnership

  2. Two or more partnership firms can enter into a new contract of partnership

  3. A married woman can be a partner of her husband

  4. Two or more Joint Hindu Families cannot enter into a contract of partnership
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under partnership law, a married woman can enter into a partnership agreement with her husband, as they are separate legal entities in the context of contract law.

Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

Balu, Lalu and Kalu are partners in a firm. They admit Malu as a minor partner to the benefit of partnership. Within 6 months of his attaining majority, he fails to give a public notice of his intention that he has become a fullfledged partner. On the other hand all other partners refuse to take him as a partner. In this case, which of the following statement is correct ?

  1. Malu is not liable as a partner

  2. Malu can become a partner

  3. Public notice is not essential for a minor partner on attaining majority

  4. A suit may be filed by other partners for dissolution of the firm
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If a minor who has attained majority fails to give public notice of their intention to leave the firm, they are deemed to have become a partner by default.

Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

A minor has some rights against his estate diving  the age in which he is minor they are ___________.

  1. defending a suit

  2. defending him in prosecution

  3. to meet his marriage expenses

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

Following persons can not be called partners ____________________.

  1. Minors

  2. Insolvents

  3. Co-owners without the agreement to carry in the business

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

Partnership requires a valid agreement between competent persons to carry on a business. Minors, insolvents, and co-owners without an agreement to trade do not meet these criteria.

Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

At the time when a new partner enters, goodwill   __________________.

  1. belongs all partners, new and old

  2. belongs only to the new partner who is going to be admitted

  3. belongs only to the old partner who have credited it

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

Goodwill represents the past efforts of existing partners; therefore, upon the admission of a new partner, the existing goodwill belongs to the old partners who built it.

Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

A _________  partner is like an disclosed principal.

  1. sleeping

  2. active

  3. nominal

  4. sub-partner
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A sleeping (dormant) partner is liable to third parties for the debts of the firm, similar to an undisclosed principal in agency law.

Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

A sub-partner is a person ____________.

  1. who is sharing the profits of some partner

  2. who does not invest and shares the profits

  3. who invests but does not work

  4. who only gives his name for partnership
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A sub-partner is a person who contracts with an existing partner to share in that partner's share of the firm's profits.

Multiple choice business organisation and correspondence partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

XYZ partnership firm is a partnership firm between A and B. C posed that he is a partner in XYZ and earned profits from the market. C will be regarded as ______________.

  1. holding out partner

  2. dormant partner

  3. nominal partner

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

If a person represents themselves as a partner to third parties to gain credit or profit, they are a 'partner by estoppel' or 'holding out' partner. Since this option is missing, 'none of the above' is the correct choice.

Multiple choice elements of business partnership 2 - organisation, classification, rights, duties and liabilities of partners types of partners types of partners and partnership firms types, rights and duties of partners

Minor may be admitted in the firm for ________.

  1. sharing of profits

  2. mutually benefit

  3. both (a) and (b)

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

Under the Indian Partnership Act, a minor can be admitted to the benefits of a partnership only for profit-sharing purposes. The minor's liability is limited to their share in the firm's assets. The admission cannot be for mutual benefit broadly, but specifically for sharing in the firm's profits. This protects the minor while allowing them to participate in partnership income.