Tag: dissolution of partnership

Questions Related to dissolution of partnership

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

Persons who  have entered into partnership with one another are collectively called ____________.

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

  1. Firm

  2. Co-owner

  3. Firm name

  4. Partner

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Correct Option: A

Which of the following purpose is permissible in a partnership?

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

  1. Business purpose

  2. Social purpose

  3. Religious purpose

  4. Charitable purpose

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Correct Option: A

Any change in the relations of partners due to admission, retirement or death of partner is called _______________.

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

  1. Dissolution of partnership

  2. Dissolution of firm

  3. Reconstitution of firm

  4. Dissolution of firm name

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Correct Option: A

In which of the following case the dissolution of partnership takes place even when there is no dissolution of the firm?

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

  1. By the retirement of a partner

  2. By the insolvency of a partner

  3. By the death of a partner

  4. All of the above

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Correct Option: D

N & Z are partners in a firm dealing in stationery. N placed order in the firm's name and on the firm's letter pad for $10$ bags of wheat to be supplied at his residence _______________.

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

  1. The firm is not liable for N's act

  2. The firm is liable for N's act

  3. A has acted within his implied authority

  4. A has acted within his implied authority and hence firm is liable to pay

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Correct Option: A

In which of the following case the dissolution of partnership takes place even when there is no dissolution of the firm?

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

  1. By the expiry of the fixed term for which the partnership was formed

  2. By the completion of the adventure

  3. By the death of a partner

  4. All of the above

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Correct Option: D

Who can give Public Notice of retirement of partner?

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

  1. All the partners of the reconstituted firm

  2. By the retiring partner or nay partner of the reconstituted firm

  3. Any partner of the reconstituted firm

  4. Retiring partner only

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Correct Option: B