Commercial Applications
Which of the following is not a feature of partnership?
- Partnership is based on mutual trust and confidence.
- Partnership business can be carried on by all the partners or by any of them acting on behalf of others.
- Partners can transfer his share in the partnership without the prior consent of all other partners.
- A partnership firm has no separate legal existence independent of the partners.
Answer
Partners can transfer his share in the partnership without the prior consent of all other partners.
Reason — This is not a feature of partnership. In fact, the opposite is true — "Restriction on Transfer of Interest" is an essential feature of partnership, which means no partner can transfer his share in the partnership without the prior consent of all other partners.
Related Questions
Statement I: A partnership is a voluntary association of two or more persons who agree to carry on some business jointly and share its profits and losses.
Statement II: The persons who enter into partnership are individually called 'partners' and collectively called 'firm'.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
An unregistered partnership firm cannot enforce its claims against a third party in a court of law.
- True
- False
Which of the following statement is incorrect?
- Each partner is liable to an unlimited extent for the firm's obligations towards outsiders.
- A partnership can be formed only for the purpose of carrying on a business.
- Each partner is liable for acts performed by other partners on behalf of the firm.
- An association of persons who jointly own a house without carrying on a business can be considered as partnership.
Which of the following statements regarding partnership is incorrect?
- Secrets are known to partners.
- Coordination between partners is not required.
- Ownership is shared by partners.
- Agreement is essential.