CBSE Questions for Class 9 Elements Of Business Steps Involved In Establishing Business Quiz 10 - MCQExams.com

Which of the following does not reflect the mutual agency principle in partnership?
  • The partner is both agent & principle
  • A partner can, by his act bind other partner and in turn is bound by the acts of other partners
  • All partners should actively participate in the business
  • Business may be managed by one or more partners
If the partnership agreement, is in ________ it is known as a 'Partnership Deed'.
  • Verbal
  • Written
  • Implied
  • Verbal, written or implied
Which of the following is/ are disadvantage of partnership firm?
  • Unlimited Liability of Partners
  • The duration of the partnership is always uncertain
  • The partners should be like minded, have a common objective, be large hearted, have a cool temperament, should not unnecessarily cause friction and confusion among the partners
  • All of above
Every partner is entitled to share in the profits ________, unless different proportions are stipulated.
  • In proportion of capital
  • Equally
  • In proportion to balance in current accounts
  • $$50\%$$ profit equally and remaining $$50\%$$ in capital ration
Who of the following can enter into partnership agreement ($$\checkmark$$) and who cannot $$(x)$$?
P. Minors
Q. Company
R. Lunatics
S. Insolvent
Select the correct answer from the options given below.
  • $$P - \checkmark, Q - \checkmark, R - \checkmark, S - x$$
  • $$P - x, Q - \checkmark, R - x, S - x$$
  • $$P - \checkmark, Q - \checkmark, R - \checkmark, S - \checkmark$$
  • $$P - x, Q - x, R - x, S - x$$
Where the partnership is at will, the firm may be dissolved by __________ giving notice in writing to all the other partners of his intention to dissolve the firm.
  • Any partner
  • Two partners
  • Three partners
  • Four partners
A minor may be admitted to the benefits of a partnership with the consent of ___________.
  • Majority partners
  • All other partners
  • $$75\%$$ partners
  • Any other one partner when there are four partners
A minor can be admitted to the benefits of partnership, which means _______.
  • He can have a share in the loss only
  • He can have a share in the profit only
  • He cannot have any share in profit or loss
  • He can have a share in the profits only if other partner by majority agrees to give it
A partnership is deemed to be a partnership at will when.
$$1$$. No fixed period has been agreed upon for the duration of partnership.
$$2$$. There is no provision made as to the determination of partnership in any other way.
Select the correct answer from the options given.
  • $$1$$ only
  • $$2$$ only
  • Both $$1$$ & $$2$$
  • Neither $$1$$ nor $$2$$
Which of the following is/ are advantage of LLP?
  • Restrictions as to maximum number of partners
  • LLP and its partners are not distinct from each other
  • Partners are not liable for act of other partners
  • All of above
LLP can raise funds from public.
  • True
  • False
  • Partly true
  • None of above
Which of the following is/ are advantages of LLP?
  • Personal assets of the partners are liable in all cases
  • Much more difficult to dissolve or wind-up
  • No requirement to maintain statutory records excepts books of account
  • All of above
A partnership firm has no separate existence apart from its members. Whereas a company is a ___________ distinct from its member.
  • Do not have separate legal entity
  • Separate legal entity
  • Non-profit making organization
  • None of the above
A change in the nature of the business can only be brought about by the consent of __________.
  • Majority partners
  • All the partners
  • Any two partners
  • Any five partners
Identify which of the following statement is true and which is false?
(i) As relations of partners inter se are that of agency, no consideration is required to create the partnership,
(ii) Partnership and Joint Hindu Family both are created by status.
(iii) There is no restriction as to maximum number of members for HUF.
(iv) Registration is also required for HUF.
Select the correct answer from the options given.
  • (i)-True, (ii)-False, (iii)-True, (iv)-False
  • (i)-False, (ii)-True, (iii)-False, (iv)-True
  • (i)-True, (ii)-False, (iii)-False, (iv)-True
  • (i)-False, (ii)-True, (iii)-True, (iv)-False
The right choice of the form of the business depends upon ___________.
(I) Nature of business
(II) Volume of business
(III) Area of operation
  • (I) and (II)
  • (III) and (II)
  • (I) and (III)
  • All of above
Which of the following is not the  characteristic of LLP?
  • A legal entity having perpetual succession, separate from its partners
  • The mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners
  • Each partner is an equal member in a LLP company
  • Easy to establish than sole proprietorship
Which of the following is NOT covered by general duties of partners?
  • To carry on the business of the firm to the greatest common advantage of the firm
  • To be just and faithful to each other
  • To arrange for audit of accounts of the firm
  • To keep and render true, proper and correct accounts of the partnership
A partner can transfer his interest so as to substitute the transferee in his place as the partner, without the consent of all the other partners; a member of company cannot transfer his share to any one he likes.
  • False
  • True
  • Partly true
  • Partly false
To whom the property of the firm belongs?
  • Partners
  • Working partner of the firm
  • Firm and not to individual partners
  • Property belongs to both partners and firm
Identify which sentence is correct and which is incorrect.
A. A sub-partner can bind the firm or other partners by his acts.
B. Sub-partner has rights or duties towards the firm and does carry liability for the dents of the firm.
C. Minor partner is entitled to his agreed share
D. Minor can inspect books of account of the firm.
Select the correct answer from the options given.
  • Sentence A & B are incorrect while sentence C and D are correct
  • Sentence B & C are incorrect while sentence A & B are correct
  • Sentence A, B & C are correct while sentence D is incorrect
  • Sentence B, C & D are correct while sentence A is incorrect
Which of the following statement is incorrect as to a minor's position in a partnership firm?
  • Minor is admitted to a share of partnership profits
  • Minor is personally liable to contribute to the losses
  • Minor is entitled to a share of the firm's property
  • Minor can inspect and copy any of the firm's accounts
Property of the firm shall be held by use of the partners __________________.
  • Exclusively for business purpose
  • For business purposes as well as private purposes of the partners
  • For the private purposes of the partners
  • For business purposes but in exceptional cases it can used for private purpose
Failure by a minor to give public notice within $$6$$ months will have the following effect ___________.
  • The partnership firm stands dissolved
  • Minor automatically becomes partner
  • Minor automatically ceases to be a partner
  • The partnership becomes an illegal association
In the absence of agreement, express or implied, the property of the firm is deemed to include _______________________________.
  • All property, rights and interest which have been brought into the common stock for the purposes of the partnership by individual partners, whether at the commencement of the business or subsequently added there to
  • Those acquired in the course of the business with money belonging to the firm
  • The goodwill of the business
  • All of the above
Identify the incorrect sentence.
  • A sub-partner is not connected with the firm
  • A sub-partner has no relationship with other partners in the firm
  • A sub-partner has a right in the firm's business
  • A sub-partner can claim his agreed share from the partner with whom he entered into sub-partnership
Which of the following partners are not liable in relation to the firm?
  • Partner by holding out
  • Working partner
  • Sub-partner
  • Partner by estoppel
A and B entered into an agreement to carry on a business of manufacturing and selling toys. Each one of them contributed Rs. $$35$$ lakhs as their capital with a condition that A and B will share the profits equally, but the loss, if any is to be borne by A alone. Referring to the provisions of the Indian Partnership Act, $$1932$$ decide whether there exists a partnership between A and B.
  • There is no partnership between A and B
  • A is sub-partner of B
  • There is partnership by holding out
  • There is partnership between A and B. A is partner in profit only
For admitting a minor into the benefits of the partnership, which of the following is required?
  • Consent of majority partners
  • Consent of parent or guardian
  • Consent of all the partners
  • Consent of $$3/4$$th partners
Every partner is bound to indemnify the firm for any loss caused by ________ in the conduct of the business.
  • Fraud
  • Misrepresentation
  • Mistake
  • Undue influence
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