Question

Mr. Mukul Gupta contracted with a firm. According to the contract, he has advanced a loan of rupee 20 lakh to the firm and in exchange he got the power to take a few decisions regarding the firm’s business. Besides, he got 9% interest on the loan and 12% of profits earned by the firm. Is Mr. Mukul Gupta a partner of the firm? Give reasons in support of your answer

Answer 1

Answer:

NO

Explanation:

Mukul Gupta is not a partner because partnership form of organisation is the relationship b/w persons who agreed to share the profit of the business run by all of them or any one of them acting for all

As in the above case Mukul Gupta neither share profit with the firm nor he run the buisness (he got some power only for decision making)

HENCE,HE WILL NOT CONSIDER AS A PARTNER BUT A CREDITOR TO THE FIRM.

Answer 2

Answer: No

Explanation: No, Mr. Mukul Gupta is not a partner of the firm, because he only has the power of taking a few decisions. Plus he is not responsible for bearing any risk the firm faces. He is just taking back his money with interest. He does not hold any purpose of caring out business.