Ved has allowed Shrey and Gaurav for using his name for the sports equipment manufacturing
unit recently promoted by them as partners. But, Ved will not take active part in managing the
firm and neither share its profit or losses.
a) Will Ved be considered as a partner in the firm? Explain.
b) Also, comment upon the kind of liability Ved will have to assume under such circumstances.
Answers
Answered by
9
Thank you for this question. Please find the answer below:
Keeping in the view the above given statement;
a. Yes, Ved can be considered as a preference partner, who only attains his share without terms of profit or losses. The business firm is bound to give him his share despite its loss or profit.
b. Ved does not have any liabilities because he is not liable to the loss in the business firm. In case of bankruptcy, the business firm is bound to give his share with its assets.
Keeping in the view the above given statement;
a. Yes, Ved can be considered as a preference partner, who only attains his share without terms of profit or losses. The business firm is bound to give him his share despite its loss or profit.
b. Ved does not have any liabilities because he is not liable to the loss in the business firm. In case of bankruptcy, the business firm is bound to give his share with its assets.
Answered by
2
Ved will not be considered as a partner in the firm as he does not take an active part in managing the firm and profits and losses.
Though Ved has allowed Shrey and Gaurav to use his names for sports equipment manufacturing, he does not take any active part in any of the vital activities.
In terms of liability, he will be charging a commission to apply his name in the brand.
Though Ved has allowed Shrey and Gaurav to use his names for sports equipment manufacturing, he does not take any active part in any of the vital activities.
In terms of liability, he will be charging a commission to apply his name in the brand.
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