Question

Under what circumstances, a partner can get exemption from sharing losses in a firm?

• A. If he is a senior citizen
• B. If he is minor
• C. If he is retiring partner
• D. All of the above

Hint:

A minor in partnership: \[ \mathrm{Shares\ profits\ but\ is\ not\ personally\ liable\ for\ losses} \]

Answer 1

The Correct Option is B

Concept: Under the Indian Partnership Act, 1932, a minor cannot become a full-fledged partner, but he may be admitted to the benefits of partnership with the consent of all partners. A minor:
• Can share profits of the firm
• Is not personally liable for losses beyond his share in the firm Thus, a minor gets exemption from sharing losses personally.

Step 1: Understand the position of a minor in partnership.
A minor is admitted only to the benefits of partnership. Therefore: \[ \mathrm{Minor\ is\ exempted\ from\ personal\ liability\ for\ losses} \] Thus: \[ \boxed{\mathrm{If\ he\ is\ minor}} \]

Step 2: Analyze the remaining options.
If he is a senior citizen Senior citizenship does not provide exemption from losses. \[ \Rightarrow \mathrm{Incorrect} \] If he is retiring partner A retiring partner remains liable for obligations until proper retirement procedures are completed. \[ \Rightarrow \mathrm{Incorrect} \] All of the above Since only one condition is correct, this option is incorrect. \[ \Rightarrow \mathrm{Incorrect} \]

Step 3: Identify the correct option.
Therefore, exemption from sharing losses is available when: \[ \boxed{\mathrm{If\ he\ is\ minor}} \] Hence, the correct answer is: \[ \boxed{\mathrm{(B)}} \]