11th Class Business Studies Forms Of Business Organisation Question Bank Forms Of Business Organisation (Higher)

  • question_answer
    A, B and C are three partners. They started with a business of transportation. They had good understanding so they had an oral partnership deed. They did not bother to register their firm as well. They had to collect a payment of Rs. 4,00,000 from a client who was not doing it.
    (a) Can they file a suit against him? Why or why not?
    (b) Explain the impact of non registration of a partnership firm


    Ans.     (a) No, they cannot file a suit against him because the firm is unregistered.
    (b) Registration is not compulsory, it is optional. But it is always beneficial to get the firm registered. The consequences of non-registration of a firm are as follows:-
    (i) A partner of an unregistered firm cannot file suit against the firm or other partner.
    (ii) The firm cannot file a suit against third party.
    (iii) The firm cannot file a case against its partner.

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