I.
Choose the Correct Answer:
1. The
firm of Hindu Undivided Family is managed by whom?
(a) Owner
(b) Karta
(c)
Manager
(d)
Partner
2. In the
firm of Hindu Undivided Family, how one gets the membership?
(a) By
Agreement
(b) By
Birth
(c) By Investing
Capital
(d) By
Managing
3. The
Members in the joint Hindu family are called ________
(a) Karta
(b)
Coparceners
(c)
Generations
(d)
Partners
4. A
partnership is registered with __________
(a)
Registrar of Companies
(b)
Registrar of Co-operatives
(c) Registrar
of Firms
(d)
District Collector
5. Name
the Partner whose association with the firm is not known to the general Public:
(a)
Sleeping Partner
(b)
Active Partner
(c)
Nominal Partner
(d)
Secret Partner
6. ___________
is governed by the Indian Partnership Act.
(a)
Partnership Firm
(b) Sole
trader ship
(c) Joint
Hindu Family
(d) None
of these
7. A
Partnership firm may be registered under Act ----------
(a) 1949
Act
(b) 1956
Act
(c) 1932
Act
(d) 1890
Act
8. In
Partnership there exists relationship of ___________[OR] The relationship
between the partners is ------------
(a) Principal
and agent
(b) owner
and servant
(c)
employer and employee
(d) frist
and second
9. The
Profit and loss of partnership firm is shared in the _______ among the
partners.
(a) agree
ratio
(b) equal
ratio
(c)
capital ratio
(d) none
of these
10. The
Maximum number of members in the non-banking firm is __________
(a) 10
(b) 15
(c) 20
(d) 25
*****************************************
Answers
(b) Karta
(b) By
Birth
(b)
Coparceners
(c)
Registrar of Firms
(d)
Secret Partner
(a)
Partnership Firm
(c) 1932
Act
(a) Principal
and agent
(a) Agree
ratio
(c) 20
II. Very Short Answer Questions
Question
1.
Write any two examples of Joint Hindu Family business run in India?
Answer:
1.
Reliance
Industries
2.
Tata
Consultancy Services.
Question
2.
Mention any four kinds of Partners?
Answer:
1.
Active
partner
2.
Sleeping
partner
3.
Nominal
partner
4.
Partner
in profits only
Question
3.
What is partnership firm?
Answer:
The persons who enter into partnership are collectively known as ‘Firm’.
Question
4.
Write any two types of dissolution through court?
Answer:
1.
When a
partner becomes of unsound mind.
2.
Permanent
incapacity observed in its formation, management or in its closure.
III.
Short Answer Questions
Question
1.
What is unlimited liability?
Answer:
The liability of a sole trader is unlimited. Since, apart from his business
assets, even his private properties are also available for satisfying the
claims of creditors. Hence, creditors may give more loans because they can get
back the loan from the personal properties of sole traders.
Question
2.
What is Particular partnership?
Answer:
When a partnership is formed to carry on a particular venture or a business of
temporary nature, it is called particular partnership. In other words, it comes
to an end on the completion of the particular venture.
Question
3.
What is meant by Mitakshara Law?
Answer:
According to Mitakshara law, only the male members in the family get the right
of inheritance by birth. It is applied throughout India except Assam and West
Bengal.
Question
4.
What is meant by Dayabhaga Law?
Answer:
According to Dayabhaga Law, the right of property develops on the Coparceners
by succession and not by birth. The share in the property is not fluctuating on
the basis of births and deaths. The share are specified prior to partition. The
coparceners can alienate their share of property given without the concern of
their coparceners.
IV. Long Answer Questions
Question 1.
What are
the rights of a partner? (Any five)
Answer:
1. Right to take part in business: Every partner has a right to take part in
the management of the business.
2. Right
to be consultant: Every partner has the right to be consulted in all the
matters concerning the firm. The decision of the majority will prevail in all
the routine matters.
3. Right
of access to books, record and document: Every partner has the right of access
to all records and books of accounts, and to examine and copy them.
4. Right
to share profit: Every partner is entitled to share the profits in the agreed
ratio. If no profit – sharing ratio is specified in the deed, they must be
shared equally.
5. Right
to receive interest: A partner has the right to receive interest on loans
advanced by him to the firm at the agreed rate, and where.no rate is
stipulated, interest @ 6% p.a. allowed.
Question 2.
What are the circumstances under which a partnership firm is dissolved? (Any
five)
Answer:
1. By agreement or mutual consent: A firm may be dissolved when all the
partners agree to close the affairs of the firm. Just as a partnership is
created by contract, it can also be terminated by contract.
2. By
insolvency of all the partners but one: If any of the partners adjudged an
insolvent » (or if all the partners become insolvent) it is necessary to
dissolve the firm.
3.
Business becoming unlawful: When the business carried on by the partnership
becomes illegal, the partnership firm is automatically dissolved.
4. By
notice of dissolution : In the case of partnership at will when any partner
gives in writing to all the other partners indicating his intension to dissolve
the firm, the firm will be dissolved.
5.
Continued loss: If the business of the firm cannot be continued expect at a
loss, the same may be dissolved by the court on application by a partner.
Case Study
Question
a.
A father had self-acquired agricultural land. He transferred the said land in
the name of his three sons. The revenue records reflect the names of the three
sons with 1/3rd share against each name. Father died recently. However physical
partition of the said land amongst the three brothers has not been done as they
have mutually decided against it. Eldest son has started managing the land
since father’s demise. Is the land in question ancestral property of the three
brothers? Can the three brothers claim to a HUF? If yes, then since when are
they HUF – after father’s demise or since the date land transferred in their
names?
Answer:
Yes, the land is ancestral property of the three brothers. It is their father’s
land. The three brothers can claim to a HUF. After their father’s death, they
can get the land transferred in their names.
Question
b.
Draw a family tree diagram as you think. Just imagine you are running a
business under the Joint Hindu Family system.
Answer:
For
Future Learning
Question
a.
Raman with members of his extended family established a Joint Hindu Family
business of Handicrafts. Raman being the head of family controlled the business
as ‘Karta’. He had authority to take all decisions for the business. Many
times, he sold goods for cash without informing other members of the family
business. This resulted in lesser profits. He also sold one of the family
properties and gave money to his daughter as a wedding gift. What values did
Karta ignore in the above case?
Answer:
1.
Unlimited
liability
2.
No
consultation with family members.
3.
Quick
decision making.
4.
Hasty
decision.
Question
b.
Palani is an Electronics Engineer. He has met two businessmen who wish to enter
into a partnership with him for the manufacture of tape – recorders. They are
prepared to make the investment and offer a fourth share in profits to Palani.
Would you have any special words of advice for Palani?
Answer:
Palani is a working partner. He knows the field of product manufacturing of
tape – recorders. So he is an expert in the business.