Which of the following is a right of a partner?(a) sharing profits and losses with other partners in the agreed ratio(b) inspecting and having a copy of the books of accounts(c) retiring from the firm without giving proper notice(d) taking part in the misconduct of the businessChoose the correct option:(i) Only (b) and (c)(ii) Only (c)(iii) Only (a) and (b)(iv) Only (a) and (d)
Question
Which of the following is a right of a partner?(a) sharing profits and losses with other partners in the agreed ratio(b) inspecting and having a copy of the books of accounts(c) retiring from the firm without giving proper notice(d) taking part in the misconduct of the businessChoose the correct option:(i) Only (b) and (c)(ii) Only (c)(iii) Only (a) and (b)(iv) Only (a) and (d)
Solution
The correct option is (iii) Only (a) and (b).
A partner in a firm has the right to share in the profits and losses of the business, which is usually determined by the partnership agreement (option a). They also have the right to inspect and have a copy of the books of accounts (option b).
Option (c) is incorrect because a partner cannot retire from the firm without giving proper notice. This would be a breach of the partnership agreement.
Option (d) is also incorrect because a partner does not have the right to take part in the misconduct of the business. This would be illegal and unethical.
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