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- Partnership is born out of contract and not status" . Explain.James and John are directors of ‘Cakes & Frozen Novelties Company Limited.’ Peter, Paul andDavid are shareholders. The company has been in operation for four years. The company has notmade any profits since its inception but James and John decided to declare dividends from thecompany’s capital reserves. The company has 10 million shares that were not distributed. Jameswent ahead and sold the shares to his wife, who is not currently a member of the company.Peter enquired as to whether or not the company can just purchase the shares issued, as there aremany different types of shares available. Paul noted that this is possible but pointed out thatRedeemable shares have particular features and certain procedures must be followed in order toredeem. He also stated three ways in which the company must finance these redeemable shares.James asked about the effect of the redeemable shares. John was puzzled and asked how acompany can redeem its share capital, especially when there is a…How. Goodwill is treated on the dissolution of a firm ?
- Mr. Salim and Mr. Nassir started a limited partnership business. Both agreed that Mr. Salim will be a general partner and Mr. Nassir will be a limited- liability partner. The business could not run successfully and closed after 2 years. It had debts/loans of OMR 20,000 while business assets only were sold for OMR12000. Who will pay the remaining OMR 8000 difference? a. No partner will pay this remaining difference b. Mr. Salim because he is a general partner and fully liable c. Both partners will pay equally d. Mr. Nassir because he is a limited-liability partner and fully liableWhy might an investor choose to become a partner in alimited partnership instead of purchasing the stock of anopen corporation?Under what circumstances can a partner be expelled from a partnership?
- BZ” is a recreational club which was organized to operate golf course for its members with an original authorized capital stock of P100M. The articles of incorporation nor the by laws did not provide for the distribution of dividends although there is a provision that after dissolution, the assets shall be given to a charitable corporation. Which of the following statement is true based on existing This is a stock corporation since its articles of incorporation and by-laws are silent, it is presumed that it can declare dividends. This is a non-stock corporation because the articles of incorporation did not provide for the distribution of dividends. The stockholders or members must amend the articles of incorporation and state clearly whether the corporation is a stock corporation or a non-stock corporation. This is a non-stock corporation because the assets after dissolution are to be given to a charitable institution.Explain the procedure of registration of partnership firm .Explain . How. Goodwill is treated on the dissolution of a firm ?
- Matthew Mark and Luke, three auto mechanics, were delighted to start an auto repair businessand decided that they would incorporate a private company to do so. It was to be called Mechanics Ltd. They were short on capital however, so they approached ABC Ltd, a public company, to be a shareholder in their private company. John, the Company Secretary and Accountant for Mechanics Ltd decided that he will not file accounts, because it was a private company. John came to you privately to find out if he is on good ground in not filing accounts. 1. You are required to tell John if he was correct in his decision or not, and give reasons foryour answer, directly from the Companies Act. 2. At the same time, Luke is very disgruntled that the company is planning on going into thebusiness of selling auto parts as well, and said that this is in breach of the Memorandum of Association's Objects Clause which states: "To repair, service and provide diagnostics to all types of motor vehicles, and to…Identify five reasons why a partnership may be dissolved.The following statements are true, except * -A limited partner is liable for partnership debts up to the extent of his capital contribution -An industrial partner can also be a capitalist partner at the same time. -An industrial partner who engages in business for himself can be excluded from the partnership. -A capitalist partner may engage in the same line of business as that of the partnership -answer not given The following partnership accounts represent a liability of a partner to the partnership, except * -Receivable from partner -Loan to partner -Due from partner -all of the above -answer not given A partner’s capital account is credited for the following transactions, except * -Share in net income -loan from the partner -Original and additional investment -both A and C -answer not given
