Partnership-Fundamentals, Class-XII, Accountancy

Q. Which of the following is not a right of the partners in a partnership firm?

• To get an equal share of profit in the absence of any deed.

• To assign his/her share to any other person at his/her discretion.

• To take part in the management of the business.

• To inspect the books of accounts at any time.

Answer explanation

In a partnership, a partner cannot unilaterally assign their share to another person without consent from the other partners. This ensures that all partners agree on who is involved in the partnership.

Which of the following is not a feature of a partnership?

• Agreement among the partners.

• Equal share in profit and loss.

• Mutual relationship of principal and agent.

• Business with profit motive.

Answer explanation

In a partnership, profit and loss sharing can vary based on the agreement. Therefore, 'Equal share in profit and loss' is not a mandatory feature, making it the correct choice as it does not apply universally to all partnerships.

In a partnership, the partners maintain a relation of --------.

• Employer and employee.

• Principal and agent.

• Service provider and client.

• Co-workers.

Answer explanation

In a partnership, partners act as principals who delegate authority to each other, making the relationship one of principal and agent. This differs from employer-employee or service provider-client dynamics.

The maximum number of partners a partnership firm can have as per Section 464 of the Companies Act, 2013.

• 200

• 100

• 50

• Not specified by the Companies Act, 2013.

Answer explanation

As per Section 464 of the Companies Act, 2013, a partnership firm can have a maximum of 100 partners. This limit is crucial for the legal structure and management of partnerships.

The maximum number of partners a partnership firm can have, as recommended by the Central Government, is--------.

• 200

• 100

• 50

• 20

Answer explanation

The Central Government recommends that a partnership firm can have a maximum of 50 partners. Therefore, the correct answer is 50.

Which among the following statements is correct?

• The 'Partnership' and 'Partnership Firm' refer to the same thing.

• 'Partnership' refers to the relationship among the partners, whereas the 'Partnership Firm' refers to the business run by the partners.

• 'Partnership Firm' refers to the relationship among the partners, whereas the 'Partnership' refers to the business run by the partners.

• None of the above statements are correct.

Answer explanation

The correct statement is that 'Partnership' refers to the relationship among the partners, while 'Partnership Firm' refers to the business they operate. This distinction clarifies the roles and entities involved.

Which of the following statements is correct?

• In a partnership, it is not mandatory for every partner to take part in the operation of the business.

• A partnership firm does not have a separate legal existence from the partners.

• There must be a written agreement among the partners before commencing a partnership business.

• It is not necessary for a partnership to run a business with the intention to earn a profit.

Answer explanation

The correct statement is that in a partnership, not every partner is required to participate in the business operations. This allows for flexibility in roles among partners.

Which among the following is not a right of any partner in a partnership business as per the Partnership Act of 1932 unless otherwise provided by the partnership deed?

• Take part in the management of the business.

• Inspect the books of accounts.

• Restrict the admission of a new partner.

• Get interest on capital

Answer explanation

As per the Partnership Act of 1932, partners have the right to manage the business, inspect accounts, and restrict new partners. However, getting interest on capital is not a default right unless specified in the partnership deed.

Given below are two statements marked as Assertion (A) and Reason (R). Read them and choose the correct option from the given alternatives.

• Both the (A) and (R) are true and (R) is the correct explanation of (A).

• Both (A) and (R) are true but (R) is not the correct explanation of (A).

• (A) is true but (R) is false.

• (A) is false but (R) is true.

Answer explanation

(A) is false, indicating that the assertion is incorrect. However, (R) is true, providing a valid reason that supports the context. Thus, the correct choice is that (A) is false but (R) is true.

Which among the following is not a rule to be followed by a partnership firm in the absence of a partnership deed as per the Partnership Act, 1932?

• Only (a)

• Only (b)

• Only (b) and (d)

• Only (a) and (d)

Answer explanation

In the absence of a partnership deed, the Partnership Act, 1932 outlines specific rules. The correct choice, 'Only (b)', indicates a rule that does not apply, as it is not mandated by the Act.