Partnership Act

A partner of an unregistered firm can sue for ____ of the firm.

• goodwill

• share in property

• dissolution

• nothing

Expulsion of a partner from the firm is regular when partnership deed authorizes the other partners, and this authority is used by __________

• any majority of the partners

• a two-third majority of the partners

• three-fourth majority of the partners

• unanimous consent of all the existing partners

In which of the following cases, is the firm not bound by the act of the partner?

• When an act is done by a partner or his agent on behalf of the firm.

• When an act is done by a partner in the name of the firm.

• When an act is done by a partner in any manner expressing or implying an intention to bind the firm.

• When an act is done fraudulently or negligently.

Ram, Sham, and Mohan are in partnership. Ram and Mohan are declared insolvent while Sham wants to continue the firm. Which of the following is true?

• The firm is also declared insolvent.

• Sham has to repay the debts of the firm.

• The firm is automatically dissolved, and hence Sham cannot continue.

• The court has to give the order for dissolution.

In which of the following cases, is the dissolution of partnership through court not possible?

• The insanity of a partner

• Misconduct by the partner

• Insolvency of partner

• Incapacity of partner

Which of the following acts is not included in the implied authority of a partner?

• To buy or sell goods on account of the partnership

• To borrow money for the purposes of the firm

• To enter into partnership on behalf of the firm

• To engage a lawyer to defend actions against the firm

Sourav and Gourav agree to divide the profit of a business in equal shares. But if there is any loss in the business, it will be borne by Sourav alone. The partnership agreement is ________.

• void

• lawful

• voidable

• illegal

The relation of partners arises from _________

• status

• an agreement

• legal provisions

• mutual understanding

A partnership firm is a/an _

• distinct legal entity from its partners

• independent juristic person agent of its partners

• agent of its partners

• none of the these

A firm may be dissolved by a court in all of the following circumstances, except

• misconduct by a partner

• insanity of partner

• completion of venture

• persistent breach of the agreement by a partner