The property of a partnership is owned by all of the partners jointly. This means that each partner has an equal interest in the property, regardless of their capital contribution.
The property of the firm can be used for the benefit of the partnership business. However, partners cannot use the property for their own personal benefit.
If a partner dies, their interest in the property of the firm passes to their heirs or legal representatives.
If a partner withdraws from the partnership, their interest in the property of the firm is redeemed by the other partners.
Here are some MCQs on the relations of partners to one another: the property of the firm of partners in banking:
- Which of the following is true about the property of a partnership?
- The property of a partnership is owned by all of the partners jointly.
- The property of a partnership can be used for the benefit of the partners’ personal needs.
- If a partner dies, their interest in the property of the firm passes to their heirs or legal representatives.
- All of the above.
- The answer is (d). All of the above are true about the property of a partnership.
- A partner in a banking partnership uses the property of the firm for their own personal benefit. Can the other partners sue the partner?
- Yes, the other partners can sue the partner.
- No, the other partners cannot sue the partner.
- The answer is (a). Yes, the other partners can sue the partner for using the property of the firm for their own personal benefit.
- A partner in a banking partnership withdraws from the partnership. How is their interest in the property of the firm redeemed?
- Their interest is redeemed by the other partners.
- Their interest is not redeemed.
- The answer is (a). The interest of a partner who withdraws from a partnership is redeemed by the other partners.