Forms of Business organization – Test 2

Identify which statement is true and which is false?
1. Any person can become member of HUF.
2. In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.
3. In a HUF business, the liability of the karta is Unlimited.
Select the correct answer from the option given below.

The liability of each member of the HUF business is …..

A HUF business can be dissolved any time-

Which of the following can be treated as advantage of HUF form of business?

Which of the following can be treated as advantage of HUF form of business?
I. The liability of the co-parceners is limited, except for that of Karta which makes the karta to manage the business in the most efficient manner.
II. A HUF business is not affected by the insolvency or death of any member including that of karta.
Select the correct answer form the options given below.

Which of the following can be treated as disadvantage of HUF form of business?

Which of the following can be treated as advantage of HUF form of business?

A joint HUF business ceases to exist on the death of the KARTA.

Which of the following is an association of 2 or more individuals who agree to hare the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all?

Partnership is an association of two or more individuals who agree to share the profits of a lawful business which is managed and carried on-
A. By all
B. By any of them
C. By some of them acting for all
Select the correct answer from the options given below.

Each member of firms is individually known as –

A minimum of …. are required to start a partnership business.

As per section 464 of the companies Act,2013, no association or partnership consisting of more than prescribed persons shall be formed for the purpose of carrying on any business, unless it is registered as a company or is formed under any other law for the time being in force. The number of persons which may be prescribed under this section shall not exceed …. Rule 10 of Companies (Miscellaneous ) Rules, 2014 prescribes … persons in this regard.

The relation between the partners of a partnership firm is created by
1. Contract
2. Birth
3. Status
Select the correct answer from the option given below.

The partners enter into partnership through an agreement which may be …..

If the partnership agreement is in …it is known as a ‘Partnership Deed’.

A minor can be admitted to the benefits of partnership, which, means ...

The partners can share profits in –

In the absence of an agreement, the partners must share profit in-

The partners have .... liability.

How partners are liable for the debts and obligation of firm?

(i) jointly

(ii) Severally

Select the correct answer from the option given below.

Registration of partnership is …….

which of the following is/are disadvantages of partnership firm?

The companies are governed by the Companies Act,……

As per Companies Act 2013, a companies –

A. Formed and registered under the Companies Act, 2013

B. An existing company registered under any earlier Companies Act

Select  the correct answer from the option given below.