Question

The provision for interest on partners' capital balances will not be honoured when the result of operations is a net loss, even if the agreement provided for such interest.

a. True
b. False

Answer 1

The claim that proprietors in a proprietary colony had no responsibilities other than collecting profits is false. Proprietors were responsible for the governance and maintenance of the colony, including legislation, defense, and welfare of its residents.

Step-by-step explanation:

The statement that 'In a proprietary colony, the Proprietors have no responsibilities except to collect the profits' is false.

Proprietors in a proprietary colony had several responsibilities beyond merely collecting profits. They were tasked with establishing a functioning government, overseeing colonial affairs, and ensuring the colony's overall success and sustainability.

These responsibilities could include instituting laws, managing relations with indigenous peoples, and providing for the defense and well-being of the colony's inhabitants.

In a proprietary colony, the proprietors have no responsibilities except to collect the profits.

This statement is false. In a proprietary colony, the proprietors were granted a charter by the king or queen, which gave them rights and privileges over the land.

However, the proprietors were still responsible for governing the colony and ensuring its success.