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Questions
Explain the merits of partnership.
State any four advantages of Partnership.
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Solution
Following are the merits of partnership:
- Easy formation and closure: A partnership firm involves an agreement (either oral or written) between two or more partners. The registration of a partnership firm is not compulsory, which eases its formation. Similarly, a partnership firm can be shut down at any time with the mutual consent of all the partners.
- Balanced decision-making: In a partnership firm, all the decisions related to the business are taken collectively by all the partners. This makes the decision-making process in a partnership firm comparatively more balanced than in any other form of business ownership.
- Sharing of risks: The risks in a partnership firm are shared jointly by all the partners. As a result, anxiety, burden and stress of the individual partners are shared among all the partners, which reduces the burden on a single partner.
- Better Financial Resources: Partnerships can raise more capital than sole proprietorships due to multiple contributors.
RELATED QUESTIONS
Indian Partnership Act was passed in the year...............................
In partnership the liability of partners of a firm is unlimited.
Define 'partnership firm'. Explain its merits and demerits.
A Joint Stock Company can raise huge capital.
Distinguish between Partnership Firm Joint Stock Company
Write a word or a phrase or a term which can substitute the following.
A partner who gives his name to a partnership firm.
Long answer type question.
Define Joint Stock Company and explain its features.
Write the word. or phrase or tenn which can substitute the following statement~:
The senior most family member of a Joint· Hindu family firm.
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Group 'A'
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Group 'B'
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a. Public Company
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1. Father of Scientific Management
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b. Henry Fayol
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2. Corrective action taking.
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c. Controlling
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3. Commercial bank
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d. Reserve Bank Of India. (R.B.I.)
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4. Withdrawal after fixed period of time.
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e. Fixed deposit account
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5. Maximum 50 members.
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6. Central Bank
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7. Unlimited members
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8. Father of modern management
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9. Taking action against employees
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10. Withdrawal before the fixed period of time.
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Features of Joint Stock Company?
Distinguish between the following.
Joint Hindu Family firm and Partnership
State with reasons whether the following statement true or false.
In a partnership the liability of every partner of a firm is unlimited.
Feature of Partnership Firm?
State Whether the Following Statement Are True Or False (Give Reason).
A partnership agreement cen be verbal or written.
State Whether the Following Statement Are True Or False (Give Reason)
The liability of partners is limited.
State Whether the Following Statement Is True Or False (Give Reason).
The liability of the Karta is limited and that of coparceners is unlimited.
Why is partnership considered by some to be a relatively unpopular form of business ownership?
Explain the limitations of partnership.
In which form of organisation is a trade agreement made by one owner binding on the others? Give reasons to support your answer.
Define the following business entities:
Partnership
