Tag: elements of business

Questions Related to elements of business

If all partners, or all but one partner, of the firm are declared insolvent ___________.

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

  1. Firm is also declared insolvent

  2. Solvent partner has to repay the debts of the firm

  3. Firm is automatically dissolved

  4. Firm can be continued

Show answer
Correct Option: C

In which of the following case, the Court may, at the suit of a partner, dissolve a firm?

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

  1. If a partner has become of unsound mind, the firm is dissolved on a petition made by any of the other partners or by the next friend of the insane partner

  2. A partner becomes permanently incapable of performing his duties as a partner

  3. If a partner is found guilty of conduct which is likely to affect the carrying on of business of the firm then application to Court shall be made by any partner who is not guilty of misconduct for dissolution of firm

  4. All of the above

Show answer
Correct Option: D

A firm may be dissolve where ___________ that it shall be dissolved.

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

  1. All the partners agree

  2. Majority of partners agree

  3. Partners by majority agree

  4. $3/4$th partners agree

Show answer
Correct Option: A

Identify which of the following statement is true and which is false.
(I) The Court may dissolve a firm if a partner conducts himself in such a way that if is not reasonably practicable for the other partners to carry on business in partnership with him.
(II) If the firm has been continuously suffering losses and it is apparent that in future also the business cannot be carried on except at a loss, the Court cannot order dissolution of the firm
Select the correct answer from the options given.

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

  1. (I)-True, (II)-False

  2. (I)-False, (II)-False

  3. (I)-False, (II)-True

  4. (I)-True, (II)-True

Show answer
Correct Option: D

The Court may dissolve a firm if a partner _________ commits breach of agreements relating to management of the affairs of the firm or the conduct of the firm's business.

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

  1. Wilfully

  2. Persistently

  3. Neither (A) nor (B)

  4. Both (A) and (B)

Show answer
Correct Option: D

In which of the following case, the Court may, at the suit of a partner. dissolve a firm?

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

  1. Partner wilfully and persistently commits breach of partnership agreement as management

  2. Partner conducts himself in such a way that it is not reasonably practicable for the other partners to carry on business in partnership with him

  3. The firm has been continuously suffering losses and in future also the business cannot be carried on except at a loss

  4. All of the above

Show answer
Correct Option: D

In which of the following case, the Court may, at the suit of a partner, dissolve a firm?

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

  1. If it can be proved to the satisfaction of the court that it is just and equitable to dissolve the firm

  2. If a partner has become of unsound mind and any other partner or next friend of insane partner files petition for dissolution of firm

  3. Partner conducts himself in such a way that it is not reasonably practicable for the other partners to carry on business in partnership with him

  4. All of the above

Show answer
Correct Option: D

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 then be applied in payment of partners capital and still surplus remains it should used for _________.

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

  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 ratip

Show answer
Correct Option: D

In which of the following situations the firm will NOT be compulsorily dissolved?

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

  1. All partners or any one of the partners is declared insolvent

  2. The business of the firm become unlawful

  3. The partnership has various adventures & one such adventure becomes illegal

  4. The decision is taken by all the partners to dissolve the firm

Show answer
Correct Option: C

__________ rule is applicable at the time of any partner becoming insolvent.

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

  1. Garner Vs Murray

  2. Derry Vs Peek

  3. Salmon Vs A. Salomon & Co. Ltd

  4. Mohiri Bibi Vs Dhamodas Ghose

Show answer
Correct Option: A