BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Is a formal and legal arrangement
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Must file permission from the government
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Write your corporate bylaws
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Have for obligation a partnership
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Detailed explanation-1: -The incorrect statement is Registration of partnership is compulsory. When there is no partnership deed or partnership deed is prepared, but it is silent on profit sharing ratio, in such a case rules of Partnership Act, 1932 will be applicable.
Detailed explanation-2: -Detailed Solution. Any firm which earns normal profit has no goodwill is true in the case of Partnership.
Detailed explanation-3: -The correct answer is Option C The revenue generated by the corporation is subject to tax. Also, the dividend received by the stockholders is taxable in the hands of the individual. This is the main disadvantage of a corporation over a partnership. In a partnership, there is no double taxation of income.
Detailed explanation-4: -Can a corporation be a partner in a limited partnership? Yes, a corporation can be a partner in a limited partnership as well as in a general partnership.