Assertion and Reason.

MCQ 11 Mark

Assertion (A): Shares cannot be allotted unless minimum subscription is received.
Reason (R): SEBI has prescribed that a company issuing shares to public cannot allot shares unless it receives subscription of 90% of the shares issued.

A
Both A and R are true and R is the correct explanation of A.
B
Both A and R are true but R is not the correct explanation of A.
C
A is true but R is false.
D
A is false but R is true.

Answer

(a) Both A and R are true and R is the correct explanation of A.
Explanation:
Both A and R are true and R is the correct explanation of A.

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MCQ 21 Mark

Assertion (A): Each partner is a principal as well as an agent for all the other partners.
Reason (R): As per the definition of Partnership Act, partnership business may be carried on by all the partners or any of them acting for all.

A
Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
B
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
C
Assertion (A) is correct, but Reason (R) is incorrect.
D
Assertion (A) is incorrect, but Reason (R) is correct.

Answer

(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
Explanation:
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

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Accountancy Assertion and Reason.

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