10 Questions
According to the Companies Act 2013, how many partners are required to start a partnership firm?
Minimum two partners
What is the purpose of a written partnership agreement?
To have a proof in case of legal disputes
What happens if a partnership firm undertakes unlawful business?
It goes against the definition of Partnership
How are profits and losses typically shared in a partnership?
Equally among all partners
In a partnership with unlimited liability, what happens if business assets cannot cover liabilities?
Personal property of partners is used to cover debts
What does the registration of a partnership firm under the Indian Partnership Act, 1932 signify?
It certifies the existence of the firm
How are property rights handled in a partnership firm according to the Act?
Each partner is a joint owner and cannot use the property for personal use
In what capacity does a partner act when dealing with outsiders?
Only as a principal
How can a partnership firm be dissolved according to the Act?
Through agreement between the partners or due to death, retirement, insolvency, or insanity of a partner
How does the Act define the management rights in a partnership firm?
Every partner has equal rights in managing the firm
Learn about the fundamentals of partnership agreements, including the importance of a written agreement and the legal requirements for the number of partners. Understand the necessity of conducting a lawful business in a partnership.
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