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

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

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 ___________.

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 ratio

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Correct Option: C

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 _______________.

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

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?

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

  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

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Correct Option: C
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. 

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 ___________________.

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

  1. Agreement

  2. Misconduct of the party seeking return of the premium

  3. Death of a partner

  4. All of the above

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Correct Option: D

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

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

  1. Insanity of a partner

  2. Misconduct of a partner

  3. Perpetual losses in business

  4. All of these

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Correct Option: A
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.

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

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

  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

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Correct Option: D
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.

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

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

  1. communicating with the principal

  2. not allowed

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

  4. all of the above

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Correct Option: C

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

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

  1. salary

  2. revaluation

  3. drawings

  4. realization

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Correct Option: D

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

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

  1. dissolve

  2. will look out for other partners

  3. will continue

  4. none of the above

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Correct Option: A

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

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

  1. qf A and B

  2. qf X

  3. af A and B and X

  4. none of the above

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Correct Option: A