Tag: elements of business

Questions Related to elements of business

Upon dissolution of Firm, any sum contributed by Partners to make up deficiencies of Capital u/s 48, is considered as ___________.

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

  1. business of the Firm

  2. goodwill of the Firm

  3. liabilities of the Firm

  4. assets of the Firm.

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Correct Option: D

Arun paid a premium for entering into Partnership for a fixed term. The Firm is dissolved before the expiry of such term, due to difference of opinion between Partners. Here  _________.

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

  1. Arun is entitled to the return of the entire premium.

  2. Arun is not entitled to any return of premium.

  3. Arun is entitled to return of entire premium or pro-rata part thereof.

  4. Arun has to pay further premium.

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Correct Option: C

A entered into partnership agreement with B, in which A makes an advance to the firm in addition of his capital to be contributed by him, after dissolution of firm _________.

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

  1. A is not entitled to claim interest on his advances.

  2. After dissolution of firm A's right is retained to his capital only not to advances.

  3. A will be entitled to interest till firm earn profits.

  4. A is entitled to claim interest till the date of dissolution.

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Correct Option: D

A partner cannot demand his proportionate share of premium from other partners at the time of dissolution of firm  __________.

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

  1. when there is no provision regarding return of premium in partnership deed

  2. by death of any partner

  3. mainly due to the misconduct of partner paying premium

  4. any of the above

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Correct Option: D

After dissolution of a Firm, any Partner or his representative may restrain any other Partner or his representative from carrying on similar business in the Firm Name or by using Firm's Property for own benefit, until ___________.

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

  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.

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Correct Option: A

After dissolution, the Firm is not bound by the acts of a Partner who __________.

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

  1. was a Working Partner

  2. was a Sleeping Partner

  3. has been adjudicated insolvent.

  4. has transferred his interest.

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Correct Option: C

The accounting rule in respect of loss arising due to insolvency of a Partner is dealt with in ________.

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

  1. Derry vs Peek

  2. Carlill vs Carbolic Smoke Ball Co.

  3. Gamer vs Murray

  4. Chinnaiah vs Ramaiya.

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Correct Option: C

Where a Partner's Capital Account has a debit balance and he is unable to bring in necessary cash to make up the deficiency, it is called ________.

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

  1. Loss on Dissolution of Firm

  2. Loss on Dissolution of Partnership

  3. Loss arising out of piecemeal distribution of assets

  4. Loss arising out of Partner's insolvency.

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Correct Option: D

On a dissolution of a firm the partners selling the goodwill of a firm cannot _____________.

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

  1. carry on a similar business

  2. compete with the business sold by the purchaser.

  3. represent themselves as carrying on old business.

  4. all of the above.

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Correct Option: C

The Loss arising out of Partners insolvency shall be borne by_________ according to Garner vs Murray case.

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

  1. all the Partners equally

  2. solvent Partners in Capital Ratio

  3. all the Partners in Profit and Loss Sharing Ratio

  4. none of the above.

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Correct Option: B