CBSE Questions for Class 9 Elements Of Business Steps Involved In Establishing Business Quiz 9 -

Each Partner in a firm is in the position of ________.
  • only agent
  • only principal
  • agent as well as principal
  • neither agent nor principal.
When no ratio of sharing of profits and losses are given, then profit and losses is shared ________.
  • equally
  • in capital ratio
  • 4:1
  • none
M, is employed by PQR Bros., a Partnership Firm. M is entitled to remuneration of Rs. 40,000 p.m. plus 12% on the Profits of the Firm, if profits exceed Rs.10 Lakhs. Here ___________.
  • M is not deemed as a Partner in the Firm
  • M is deemed as a Partner in the Firm
  • the appointment of M is invalid
  • M can claim only Rs. 40,000 p.m. but not share of profits.
A was an Employee in a Partnership Firm with a Salary of Rs. 50,000 per month and he will get a Share of 30% in Profits if the Profits ot the Firm exceed Rs.5,00,Now W is called ________.
  • partner of the firm
  • not a partner of the firm
  • he cannot take share in profits
  • is not entitled to any salary.
The amount received by a partnership firm from the insurance company on the maturity of a Joint Life Policy taken by the firm will be distributed amongst the partner ___________.
  • equally
  • in the profit sharing ratio
  • in the ratio of capital balances at the beginning of the year
  • in the ration of capital balances at the end of the accounting year.
As per the agreement, Profits should be shared equally but Loss shall be borne by one Partner. Then the Partnership agreement is_____.
  • lawful
  • illegal
  • void
  • voidable
Partnership at Will means ___________.
  • no duration Period is Fixed
  • dissolved at the will of the Creditors
  • dissolved at the will of the Debtors
  • none of the above.
In which of the following, the Partnership duration is not fixed?
  • Particular Partnership
  • Partnership at will
  • Fixed term Partnership
  • None of these.
The Mode of determining the existence of Partnership is __________.
  • real relation between them.
  • sharing of profits.
  • ubsiness is to be carried on by all or any of them acting for all.
  • all of the above.
Sharing of profits is  _________ evidence of existence of Partnership.
  • collaborative
  • confirmative
  • conclusive
  • not a conclusive
A Partner may be expelled from the Firm by any majority of the Partners _____________.
  • in good faith
  • based on the contract between Partners
  • either (a) or (b)
  • both (a) and (b).
Which is true statement regarding the including of the minor in partnership firm?
  • A minor may be admitted to the benefits of partnership with the consent of all other partners.
  • A minor may be admitted to the benefits of partnership with no consent of other partners.
  • A minor may be admitted to the benefits of the consent of his partners.
  • A minor may be admitted to the benefits of partnership with the guarantee of his parents.
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 ___________.
  • the affairs of the Firm are fully wound up.
  • public notice of dissolution is given.
  • dissolution deed is signed by all Partners.
  • all of the above.
A partner cannot demand his proportionate share of premium from other partners at the time of dissolution of firm  __________.
  • when there is no provision regarding return of premium in partnership deed
  • by death of any partner
  • mainly due to the misconduct of partner paying premium
  • any of the above
On which of the following grounds, court may dissolve a firm at the suit of a partner?
  • A partner willfully commits breach of agreement on regular basis.
  • Where a firm constituted for a fixed term and that term is expired.
  • Where a partner dies.
  • When a minor is admitted in to partnership.
On a dissolution of a firm the partners selling the goodwill of a firm cannot _____________.
  • carry on a similar business
  • compete with the business sold by the purchaser.
  • represent themselves as carrying on old business.
  • all of the above.
Upon dissolution of Firm, any sum contributed by Partners to make up deficiencies of Capital u/s 48, is considered as ___________.
  • business of the Firm
  • goodwill of the Firm
  • liabilities of the Firm
  • assets of the Firm.
Upon dissolution, which is the proper order for application of the Firm's assets?
I.     Payment of Debts & Liabilities of the Firm
II.    Payment of Partner's Loan
III.  Payment of Partner's Capital
IV.   Distribution of Surplus to Partners in their Profit Sharing Ratio.
  • I, II, III, IV
  • I, II, IV, III
  • II, III, IV, I
  • IV, II, III, I.
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 _________.
  • A is not entitled to claim interest on his advances.
  • After dissolution of firm A's right is retained to his capital only not to advances.
  • A will be entitled to interest till firm earn profits.
  • A is entitled to claim interest till the date of dissolution.
  • Both Statements are true
  • Both Statements are false
  • Statement X is true while Statement Y is false
  • Statement Y is true while Statement X is false
In case of sole proprietorship there is a _______ between _________.
  • Direct link, effort and reward
  • Indirect link; Profit and loss
  • Direct link; Profit and loss
  • Indirect link; effort and reward
Which of the following are the essentials of partnership?
  • Association of two or more persons
  • Agreement/contract
  • Carrying on business
  • All of above
Persons who have entered into partnership with one another are called individually __________________.
  • Firm
  • Co-owner
  • Firm name
  • Partner
In which of the following case there is NO partnership?
A. The members of a HUF carrying on a family business
B. Burmese Buddhist Husband and wife carrying on business.
Select the correct answer from the options given.
  • B only
  • A only
  • Both A and B
  • Neither A nor B
In order that persons may become partners, it is essential that _________.
I. There must be at least two persons
II. There must be a relationship arising out of status between two or more persons.
III. The agreement must be to share the profits of a business
Select the correct answer from the options given:
  • I & II only
  • II & III only
  • III only
  • I & III only
Section $$5$$ of the Act states that the relation of partnership arises from ___________.
  • Status
  • Contract
  • Birth
  • Offer
Persons entering into partnership contract may be.
$$(1)$$ Natural persons
$$(2)$$ Artificial persons
Select the correct answer from the options given:
  • $$(1)$$ only
  • $$(2)$$ only
  • Combination of $$(1)$$ and $$(2)$$
  • $$(1)$$ or $$(2)$$ or combination of $$(1)$$ and $$(2)$$
N and Z, the co-owners of a house, use the house as a hotel managed either by themselves or by a duly appointed manager for their common profit. Is there a partnership relation between the parties?
  • Yes
  • No
  • Partly yes
  • Can't say
Where the partnership is at will, the firm is dissolved as from ______________________-.
  • The date mentioned in the notice as the date of dissolution and if date is not mentioned in notice then such notice is void
  • The date of notice whether date of dissolution is mentioned in notice or not
  • The date mentioned in the notice as the date of dissolution and if no such date is mentioned, as from the date of communication of the notice
  • The date when notice is actually received by all other partner
A partnership may be _________.
  • For particular adventure
  • For fixed period
  • A partnership at will
  • Any of the above

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Practice Class 9 Elements Of Business Quiz Questions and Answers