Question

Read the following text and answer question no,17 to 20.

Amar, Akbar and Antony have been running a restaurant separately in different localities as only owner of their

business. they have the exclusive right of control over their business. they have the exclusive right of control over their

business. They want to expand their business but due to limited financial resources and capacity to manage business

affairs they could not do so. Now they decide to join their hands together and agree to form a partnership firm. they

approach their friend Arpita who promise to contribute a very good amount of capital but expresses his inability to

participate in the working of the business. After one year, the firm earns a profit of ₹ 30,00,000. All the four partners

have different opinion how to distribute this amount among themselves. They consult one Chartered Accountant,

Mr.Nirmal Gupta who advised them to follow the provisions of law.

17. Name the business organisation rub by Amar ,Akbar and Antony before admitting Arpita in their business.

(a) sole proprietorship (b) partnership (c) joint Hindu family business(d) private company

18. Name the business organisation run by Amar, Akbar and Antony after admitting Arpita in their venture

(a)sole proprietorship (b) partnership (c) private company (d)public company

19. What is the status of Arpita in the firm?

(a) Active partner (b) Nominal partner(c) sleeping or dormant partner (d) secret partner

20. If there is no written agreement among the partners , the provisions of ______will be applicable.

(a) Companies Act (b) Contract Act (c) Cooperative Societies Act (d) Partnership Act​

Answer 1

17. Sole proprietorship.

18. Partnership.

19. Sleeping and dormant partner.

20. Partnership act.

Thanks.