Explore topic-wise InterviewSolutions in Current Affairs.

1. Name : Name of the Firm. 

2. Nature of Business : Nature of the proposed business to be carried on by the partners.

3. Duration of Partnership : Duration of the partnership business whether it is to be run for a fixed period of time or whether it is to be dissolved after completing a particular venture.

4. Capital Contribution : The capital is to be contributed by the partners. It must be remembered that capital contribution is not necessary to become a partner for, one contribute his organising power, business acumen, managerial skill etc., instead of capital.

5. Withdrawal from the Firm : The amount that can be withdrawn from the firm by each partner.

6. Profit/Loss Sharing : The ratio in which the profits or losses are to be shared. If the profit sharing ratio is not specified in the deed, all the partners must share the profits and bear the losses equally.

7. Interest on Capital : Whether any interest is to be allowed on capital and if so. the rate of interest. 

8. Rate of Interest on Drawing : Rate of interest on drawings, if any. 

9. Loan from Partners : Whether loans can be accepted from the partners and if so the rate of interest payable thereon. 

10. Account Keeping : Maintenance of accounts and audit. 

11. Salary and Commission to Partners : Amount of salary or commission payable to partners for their services. (Unless this is specifically provided, no partner is entitled to any salary). 

12. Retirement : Matters relating to retirement of a partner. The arrangement to be made for paying out the amount due to a retired or deceased partner must also be stated. 

13. Goodwill Valuation : Method of valuing goodwill on the admission, death or retirement of a partner. 

14. Distribution of Responsibility : Distribution of managerial responsibilities. The work that is entrusted to each partner is better stated in the deed itself. 

15. Dissolution Procedure : Procedure for dissolution of the firm and the mode of settlement of accounts thereafter. 

16. Arbitration of Dispute : Arbitration in case of disputes among partners. The deed should provide the method for settling disputes or difference of opinion. This clause will avoid costly litigations.

B) Service sector

Though a partnership agreement need not necessarily be in writing, it is important to have a written agreement in order to avoid misunderstandings; it is desirable to have a written agreement. A carefully drafted partnership deed helps in ironing out differences which may develop among partners and in ensuring smooth running of the partnership business. It should be properly stamped and registered.

(b) Articles of Partnership

(i) has not 

(ii) service 

(iii) organized 

(iv) large 

(v) natural, manufactured

1. The people are better off in West Bengal and Assom. 

2. The people who are buying rice from market in Tamil Nadu and Andhra Pradesh are 47 and 67 per cent respectively. 

3. Whereas the people who are buying rice from market are 89 and 94 per cent respectively for West Bengal and Assom. 

4. That means more people are purchasing rice from market in West Bengal and Assom. 

5. So, we can say the people of West Bengal and Assom are better off.

A statement which shows inflow and outflow of cash and cash equivalents from operating, investing and financing activities during a specific period.

(a) cash flow from operating activities 

(b) cash flow from investing activities 

(c) cash flow from financing activities.

When the amount received by an organisation from a deceased person calls legacies. This is a capital nature receipt and shown in liabilities side of balance sheet.

(Note; for objective type questions any one or two can be asked) 

Short –term highly liquid investments which are readily convertible into known amount of cash and which are subject to an insignificant risk of change in the value.

Current assets and current liabilities has inverse relationship with cash and cash equivalent.

No, some, of the deposed kings are jailed and some are slain.

The perishable human body stands as a ‘small model’ of the barren earth.

Garner V/s Murray as follows:

• Deficiency of capital of insolvent partner would be borne in their capital ratio by solvent partners.
• Solvent partners should bring in cash for their share of realization loss. Capital ratio of the solvent partners would be derived from the regular balance sheet made prior the dissolution of firm.

B’s Capital A/C Dr. 3000
C’s Capital A/c Dr. 1000
To A’s Capital A/C 4,000
(Deficiency of A’s amount bear by B and C their capital ratio.)

The court may a are application by partner order the dissolution if the partnership firm. Called, Dissolution by court.

(d) Earning profit by consumer satisfaction through social service

Total of both column of Balance Sheet should be same.
Loss on realization = Total of liability side – Total of Assets side
= (20,000 + 15,000) – (10,000 +9000)
= 35000 – 10000
= 25000
Rs 9000 realized from 34,000 Assets = It means loss on realization will Rs 25,000.

Correct answer is b. Asset

Subscription received in 2009, relating to the year 2010, will not be shown in the Receipts and Payment account for the year 2010 is True.

Correct option is B) \(\cfrac{National\,Income}{Population}\)

A) Goods and Services Tax

(b) in life insurance

Those public companies whose shares are listed and can be traded in a recognised stock exchange for public trading like, Tata Motors, Reliance, etc are called Listed Company. These companies are also called Quota Companies.

Listed companies are those companies whose shares are listed on a recognised stock exchange for public trading. When a company’s security is listed in a recognised stock exchange the price fluctuation can easily be observed by the investor and he/she can easily determine the increase/decrease in value of their investment in a concerned listed company. This is the only reason that the volume remain high in case of a listed company as all the moves can be observed and investment strategy can easily be planned in that company.

When a company repurchase its own share from the market to reduce the number of share it is called buy-back of shares. As per the Section 77A of the Companies Act, 1956 the procedure for buy back of share would be as follows 

(i) First of all the Articles of the Association must authorise the company for the buy-back of shares. 

(ii) A special resolution must be passed in the companies’ Annual general body meeting. 

(iii) The amount of buy-back of shares should not exceed 25% of the paid-up capital and free reserves. 

(iv) The debt-equity ratio should not be more than a ratio of 2:1 after the buyback. 

(v) All the shares of buy-back should be fully paid-up. 

(vi) The buy-back of the shares should be completed within 12 months from the date of passing the special the resolution. 

(vii) The company should file a solvency declaration with the Registrar and’ SEBI which must be signed by at least two directors of the company. –

Sources for Buy-back of Share

(i) Free reserves. 

(ii) Securities premium account. 

(iii) Proceeds of any shares or other specified securities, provided that no buy-back of any kind of shares or other specified securities shall be made out of the proceeds of the earlier issues of the similar kind of shares or specified securities.

(a) Making Profit

When shares are allotted against the share application, in face or in some proportion or no share allotted then it is known as prorate allotment of shares. In this situation, excess amount received at the time of application will be credited to share allotment A/c and if amount is still in excess, then it will be credited to share calls and then remaining amount is returned to applicants.

Occupation of a Doctor is Profession.

• Oxygen being more electronegative, the O-H bond is more polar and there arises association of H₂O molecules through intermolecular hydrogen bonding.
• The other hydrides of group 16 do not form H bonds and hence exist as discrete molecules.
• As a result, water shows unusual properties like high B.P, high thermal stability and weaker acidic character as compared to the other hydrides of group 16. 

Correct answer is

B. Chlorine

सही उत्तर है वर्ष 1948 में

अन्तर्राष्ट्रीय व्यापार संस्था (World Trade Organisation).

आरंभ में 23 सदस्य थे तथा अब 164 हैं।

Correct answer is

C. H₂Te > H₂Se > H₂S > H₂O

The terracing of the land, the construction of bunds, the practice of contour cultivation and the planting of some types of vegetation are the measures that can be used to check soil erosion

The availability of electric power would make a tremendous difference to the life of the countryside and enable rural economy to be improved in various directions.

The cheapest means of transport is by boats and barges through canals and rivers.

(b) To provide after sales service

(a) Earning money

(d) Industry, Trade and Commerce.

Scope of Business: Business is a comprehensive term. All those activities that are related to the production and distribution of goods and services are included in the area of business. Thus business includes two types of activities, i.e. the production related activities known as Industry and distribution related activities known as commerce. Thus business covers the scope of industry as well as commerce. Industry means the business activities performed to produce goods by using physical or natural resources and transforming them into consumable goods which may meet the needs of the consumers.

Commerce: It is related with the acts to distribute goods to the consumer at proper place, time, manner, quantity and price. In this process of distribution commerce has to seek help from many auxiliary institutions like transportation, warehousing insurance, communication, bank and other financial institutions. 

All the commerce related activities are of two categories:

1. Trade and 

2. Auxiliary activities of trade.

Thus scope of business includes Industry and commerce as explained above.

Objectives of Business: According to the traditional concept the main purpose of business was to earn profit but in the modern -competitive age and according to Urwik, earning profit cannot be the only aim of business. To serve society is also regarded as a prominent aim of business.

According to William G. Scott: Objective of business must be the satisfaction of human needs because the right to conduct business is also given by an organised society.

A businessman runs his business to satisfy various groups of society to achieve the following objectives:

(a) Profit Objective: According to Peter. F. Drucker, “ The aim of any business is not to earn maximum profit but earn to such an extent that is sufficient to bear its inherent risk or to save oneself from the loss.” Therefore to earn profit is a basic need for the continuance, development and expansion of the business.

The following are the main objectives for the fulfilment of this economic aim: 

1. To earn satisfactory profit. 

2. To innovate the business methods. 

3. To improve quality of goods and services so that the customers may get better product at lower prices. 

4. To look for new markets and to create new customers. 

5. To develop and expand business activities.

(b) Service Objective: Service along with profit has become the main aim of the business.

For fulfilling this aim the main activities are to: 

1. Provide goods as per needs of the customers. 

2. Supply better quality goods at fair price. 

3. Avoid profiteering and unfair trade practices. 

4. Provide after sale service. 

5. Avoid false and misleading advertisements. 

6. improve new techniques.

(c) Human Objective: The humanistic aim of a businessman is to deal with various human groups in a proper manner, to protect their interests and to establish proper adjustment among them.

In order to achieve this humanistic aim one has to do these activities: 

1. Humanistic behaviour with workers and labourers. 

2. To provide adequate salary and good working conditions. 

3. To manage labour welfare and social security. 

4. To settle the grievances of workers as early as possible. 

5. To provide opportunities of promotions and development of employees. 

6. To ensure proper returns to the investors. 

7. To ascertain the security of the invested capital.

8. To be cooperative towards the suppliers and to pay proper price for their material. 

9. To make available maximum opportunities for employment. 

10.To keep in view national interests and priorities.

Meaning of Business: All human activities that are related to purchase and distribution of goods or services and that are aimed at making profit, are called business. In the modern process of globalization business is also aimed at satisfaction of various needs of the whole society. In other words business includes all those legal human economic activities that are performed for regular production and distribution of goods and services and are aimed at securing social satisfaction so that the living standard of the society is improved.

Characteristics of Business:

1. Human Economic Activities: All economic activities related with earning of profit, by human beings, are business. Activities of non-economic men like saints, hermits or missionaries are not included in business. 

2. Transaction of Goods and Services: In business there is a transaction of goods and services and that transaction may be of consumer goods such as clothes, jewellery, sweets, etc. or industrial goods such as machinery, services like, transportation, warehousing, insurance, banking etc. are also included in business. 

3. Production and Distribution: In business both goods and services are produced and distributed but to produce the goods for one’s own use, is not business. 

4. Continuity in Business Transactions: Continuity in business is necessary for business distribution and production of goods and services. 

5. Legality: The illegal human activities like theft, smuggling, gambling, black marketing, etc. are not included in business. 

6. The Main Objective of Business is to earn Profit: Earning profit is very necessary to maintain development and expansion of business. 

7. Presence of Risk: There is a possibility of loss in every business. The capacity to bear such losses called risk. Greater the possibility of risk in a business, greater are the chances of earning profit in that business. 

8. Mutual Interest: Business is not done for one sided profit. It is for mutual interest or satisfaction. If the customer is not satisfied, the business cannot be stable in the market. Thus, the mutual interest or satisfaction between businessman and the consumers is very essential. 

9. Means of Social Change: Business can help people enhance their means of earning. An improvement in earning leads to better living standard and consequent change in the process of thinking according to social needs. 

10.Creation of Utilities: Creation of the quality of satisfying the consumers’ need in goods by the use of human abilities is called creation of utility.

Following utilities are created by business: 

1. Form utility 

2. Place utility 

3. Time utility 

4. Authority utility

In my opinion, if he purchases from foreign countries, it will be a quality one. It will work a long time. First of all he should get the quotation from all countries. He can choose which is the low cost and high quality machines. A very good brand also can be chosen.

Re – export trade is otherwise called as Enterpot trade.

Correct Answer is: (a) Export

Trade acts as a connective link between the producer and the consumer.