Read the following statements: Assertion (A) and Reason (R). Choose the correct alternativefrom those given below.Assertion: Michael, Mike and Stephen were partners sharing profits and losses in the ratio 3:2:1.Stephen being a partner wants that he should be exempted from sharing the losses in the firm.Reasoning: According to Partnership Act 1932,”It may be agreed between the partners that oneor more of them shall not be liable for losses.”Alternatives:(a) Both A and R are correct, and R is the correct explanation of A.(b) Both A and R are correct, but R is not the correct explanation of A.(c) A is correct but R is incorrect.(d) A is incorrect but R is correct

A stipulation which excludes one or more partners from any share in the profits or losses is valid.Group of answer choicesTrueFalse

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)

In the absence of a partnership agreement, profits and losses are shared by partners:a.Equallyb.According to their capital contributionsc.According to their time and effort investedd.In proportion to their agreed ratio

Agreement to share in both profits and losses is a prima facie evidence of the existence of a partnership.Group of answer choicesTrueFalse

Which ONE of the following statements is CORRECT?a.In the absence of any provision in the contract that regulates how partners will share in the profit, a division of assets upon dissolution is made in proportion to the partners’ respective contributions to the enterprise.b.The assets of the partnership do not belong to the partners, but to the partnership.c.In the absence of any provision in a contract that regulates how partners share in the net profit or loss of the partnership, the net profit or loss is shared equally by all the partners.d.The natural consequences of a contract are those consequences which apply to a particular type of contract by choice of the parties to that contract.