Teaching Business Studies Forms Of Business Organisation Question Bank MCQ - Forms of Business organisations

  • question_answer
    Direction: In the question given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements which one of the following is correct?
    Assertion (A) All partners are responsible for the debts according to the proportion to their share in business.
    Reason (R) Each partner can be held responsible for repaying the debts of business.
    Codes

    A)  Both A and R are true and R is the correct explanation of A

    B)                     A is true, but R is false

    C)                     Both A and R are false

    D)         Both A and R are true, but R is not the correct explanation of A

    Correct Answer: D


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