Question 1

. A person entered into partnership is known as …………
A)partner
B)people
C)karta
D)none of the above

Accepted Answer

A partner is an individual who enters into a partnership agreement with one or more individuals to conduct business.

Question 2

Collective group of persons is known as……..
A)firm
B)society
C)person'
D)none of the above

Accepted Answer

A

Question 3

…………..cannot become a partner.
A)minor
B)partner
C)firm
D)society

Accepted Answer

A minor cannot become a partner in a firm as they are not legally capable of entering into contracts.

Question 4

The payment is authorized by, and is in accordance with the term of partnership deed according to sec………….
A)sec. 40(b)(ii)
B)sec. 40(b)(iii)
C)sec. 50(b)(ii)
D)none of the above

Accepted Answer

Section 40(b)(ii) of the Income Tax Act deals with the conditions under which remuneration to partners is allowed as a deduction, provided it is authorized by and in accordance with the terms of the partnership deed.

Question 5

…………..is an obligation annexed to the ownership of property.
A)trust
B)firm
C)company
D)karta

Accepted Answer

A trust is an obligation annexed to the ownership of property, where the property is held by one party for the benefit of another.

Question 6

The person who accepts the confidence is called ………….
A)trustee
B)karta
C)firm
D)aop

Accepted Answer

The person who accepts the confidence in a trust arrangement is called a trustee. They are responsible for managing the trust assets for the benefit of the beneficiaries.

Question 7

The subject matter of the trust is called …………….
A)trust property
B)own property
C)own furniture
D)none of the above

Accepted Answer

The subject matter of a trust, meaning the property or assets that are being held and managed by the trust, is referred to as "trust property."

Question 8

The trust should be one established in accordance with law and its objects should fall within the definition of the term ………….
A)charitable purposes
B)work purpose
C)assessment purposes
D)to earn profit purpose

Accepted Answer

The term "charitable purposes" is correct because trusts established for charitable purposes are recognized under law for their public benefit nature, unlike the other options which do not align with the legal definition of purposes for which a trust can be established.

Quiz 5: Assessment of Various Entities

. A person entered into partnership is known as …………

Collective group of persons is known as……..

…………..cannot become a partner.

The payment is authorized by, and is in accordance with the term of partnership deed according to sec………….

…………..is an obligation annexed to the ownership of property.

The person who accepts the confidence is called ………….

The subject matter of the trust is called …………….

The trust should be one established in accordance with law and its objects should fall within the definition of the term ………….