Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
According to the Companies Act 2013, how many partners are required to start a partnership firm?
According to the Companies Act 2013, how many partners are required to start a partnership firm?
- Maximum of five partners
- Exactly fifty partners
- Minimum two partners (correct)
- At least one partner
What is the purpose of a written partnership agreement?
What is the purpose of a written partnership agreement?
- To limit the number of partners
- To formalize the partnership verbally
- To avoid the need for partnership deeds
- To have a proof in case of legal disputes (correct)
What happens if a partnership firm undertakes unlawful business?
What happens if a partnership firm undertakes unlawful business?
- The firm gets tax relief
- Partners have no liability
- It goes against the definition of Partnership (correct)
- Partners are exempt from legal action
How are profits and losses typically shared in a partnership?
How are profits and losses typically shared in a partnership?
Signup and view all the answers
In a partnership with unlimited liability, what happens if business assets cannot cover liabilities?
In a partnership with unlimited liability, what happens if business assets cannot cover liabilities?
Signup and view all the answers
What does the registration of a partnership firm under the Indian Partnership Act, 1932 signify?
What does the registration of a partnership firm under the Indian Partnership Act, 1932 signify?
Signup and view all the answers
How are property rights handled in a partnership firm according to the Act?
How are property rights handled in a partnership firm according to the Act?
Signup and view all the answers
In what capacity does a partner act when dealing with outsiders?
In what capacity does a partner act when dealing with outsiders?
Signup and view all the answers
How can a partnership firm be dissolved according to the Act?
How can a partnership firm be dissolved according to the Act?
Signup and view all the answers
How does the Act define the management rights in a partnership firm?
How does the Act define the management rights in a partnership firm?
Signup and view all the answers
