Partnership Act 1961 Quiz

Which section of the Partnership Act 1961 allows a partner to apply to the court for dissolution?

• Section 25

• Section 30

• Section 37

• Section 40

When a partnership is dissolved, partners are:

• Released from all prior obligations

• Still bound by contractual obligations made before dissolution

• No longer required to communicate with each other

• Obligated to renew the partnership

Dissolution by mutual agreement requires what percentage of consent among partners?

• 51%

• 75%

• 100%

• Any percentage, as long as all partners are informed

Which of the following is a ground for dissolution by court due to a partner’s incapacity?

• Temporary illness

• Permanent physical disability

• Long vacation

• Financial hardship

In what scenario does a partnership end automatically by law?

• Agreement of all partners

• Partner’s retirement

• Expiry of a fixed term

• Non-consensual withdrawal

Which condition is not considered a valid reason for dissolution by the court?

• Partner’s fraud

• Persistent breach of duty

• Consistent profit generation

• Permanent mental disability of a partner

If a partner continuously breaches their duty, it may lead to:

• Dissolution by operation of law

• Dissolution by court order

• Dissolution by notice

• Automatic renewal of the partnership

Which of the following is not an advantage of a partnership?

• Requires registration

• Easy and cheap to set up

• Partners share profit and losses

• Partners may take part in management

In a partnership, liability of partners is:

• Limited

• Unlimited

• Based on the capital contributed

• Limited to profits only

When can a partner give notice to dissolve the partnership?

• Only at the end of the fiscal year

• At any time, if no fixed period is set for the partnership

• Only with court permission

• Only with a 75% partner vote