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M.Law: Partnership Act 1932

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

The maximum number of partners is mentioned in:

a)

The Partnership Act

b)

The Companies Act

c)

The General Clauses Act

d)

The Societies Registration Act.

2.

In the absence of agreement to the contrary all partners are:

a)

not entitled to share profits

b)

entitled to share in capital ratio

c)

entitled to share in proportion to their ages

d)

entitled to share profits equally.

3.

A partnership at will is one:

a)

which does not have any deed

b)

which can be terminated by a notice from any partner

c)

which cannot be dissolved.

d)

which does not have any partner

4.

Each of the partner is _________

a)

only agent of the firm

b)

only co-partner of the firm.

c)

only representative of the firm

d)

principal as well as an agent of the firm

5.

The Indian partnership act came into force on

a)

1 st October,1932

b)

1 st July, 1930

c)

1 st October,1930

d)

1 st September, 1932

6.

An unregistered firm cannot claim ________

a)

True

b)

False

c)

Partly True

d)

Partly False

7.

Which of the following statements, about the registration of firm, is not true?

a)

it may be done at the time of formation

b)

it may be done at any time after its formation.

c)

it may be done before filing a suit against third party

d)

it must be done at the time of its formation

8.

The registration of the firm is considered complete when

a)

Registrar files the statement and makes entries in the Register of firms

b)

application for registration complete in all respects is filed with the Registrar

c)

Court records the statement and certifies the entries in the Register of firms.

d)

Registrar gives notice of registration to all partners

9.

Which of the following is not disability of an unregistered firm?

a)

it cannot claim a set-off exceeding Rs.100/-

b)

it cannot file a suit against third parties

c)

it can be sued by a third party

d)

its partners cannot files a suit against a firm

10.

Rishi and Irfan have entered into a partnership agreement and the partnership deed provides neither for the duration nor for the determination of partnership. This type of partnership is commonly known as......................

a)

partnership at will

b)

partnership for a fixed term

c)

particular partnership

d)

any of the above.

11.

Mr. Amar and Mr. Akbar purchased 10,000 bags of cement, which they agree to sell for their joint account. The relation between X and Y is is called partnership

a)

True

b)

Partly True

c)

Partly False

d)

False

12.

Suresh and Ramesh agreed to work together as carpenters but Suresh shall receive all profits and shall pay wages to Ramesh . The relation between X and Y is that:

a)

partnership

b)

laborers

c)

master-servant

d)

carpenters

13.

The partnership relation exist when:

a)

joint owner of some property share profit or loss arising from the property

b)

two friends A (age 19 years), B (17 years) decide to form a partnership

c)

A and B agreed to sell clothes for their joint account and share the profits

d)

a person receives a share of profit as a part of his remuneration

14.

The partnership firm becomes an illegal association, when:

a)

the number of partners in a non-banking business exceeds 10

b)

the number of partners in a banking business exceeds 10

c)

the number of partners in a banking business exceeds 100

d)

none of above.

15.

A partnership firm may be registered with:

a)

High Court

b)

Registrar of Companies

c)

Registrar of Firms

d)

Registrar of Partners

16.

In case of registered partnership firm;

a)

a partner cannot file a suit against any partner of the firm

b)

a partner cannot file a suit against the firm

c)

the firm cannot file a suit against third parties

d)

None of the above

17.

Active partner is one who:

a)

has an ownership in the business of the firm

b)

makes a show of authority.

c)

actively shares the profits

d)

actively participates in the day to day activities of the firm

18.

A partner can retire on _________

a)

on the balance in the capital account reaching a certain amount

b)

in accordance with the provisions of partnership deed

c)

on the condition of his nominee becoming a partner.

d)

reaching the age of superannuation

19.

A new partner can be admitted in the firm with the consent of:

a)

all the partners

b)

simple majority of partners

c)

new partner only.

d)

special majority of partners

20.

A partner may retire from an existing firm:

a)

by written notice in case of partnership at will

b)

with consent of all partners

c)

as per express agreement

d)

all of the above

21.

Which of the following statements is not true about minor's position as a partner?

a)

He cannot become a full-fledged partner in a new firm

b)

He can become partner on becoming a major

c)

He can be admitted only to the benefits of any existing firm.

d)

He can automatically become partner immediately on becoming a major

22.

Every partner has the right to

a)

take part in the business of the firm

b)

give his name to firm

c)

to use the property of the firm for personal purposes

d)

to share exclusive profits

23.

A partner can be expelled by complying the following conditions except_______.

a)

such expulsion is in good faith

b)

the majority of the partner agree on such expulsion

c)

the partner to be expelled is given an opportunity of being heard

d)

compensation is paid to the expelled partner

24.

On dissolution the partners remain liable till.........

a)

the registrar strikes off the name

b)

public notice is given

c)

partners dues are paid off

d)

accounts are settled

25.

Which of following is the right of a retired partner ?

a)

right to share profits

b)

right to take part in business

c)

right to start a competing business

d)

right to receive remuneration.

26.

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

a)

to buy or sell goods on accounts of partners

b)

to engage a lawyer to defend actions against firm.

c)

to enter into partnership on behalf of firm

d)

to borrow money for the purposes of firm

27.

After retirement from firm, which of the following partners is not liable by holding out, even if the public notice of retirement is not given?

a)

sleeping partner

b)

active partner

c)

representatives of deceased partner

d)

both (a) and (c)

28.

Doctrine of implied authority of a partner applies to the;

a)

act of settling accounts of the creditor

b)

act of admitting a liability in suit against the firm

c)

act of acquiring immovable property on behalf of the firm

d)

all of these

29.

Death of 2 out 8 partners in a partnership firm has the effect of....

a)

legal heirs automatically joining the firm

b)

automatic dissolution of the partnership firm

c)

automatic dissolution of the partnership but not the firm

d)

all of the above

30.

The reorganization of the firm takes place in case of........

a)

admission of a partner

b)

expulsion or death of a partner

c)

retirement of a partner

d)

all of the above.

31.

A partnership firm is compulsorily dissolved where:

a)

all partners have become insolvent

b)

firm‟s business has become unlawful

c)

the fixed term has expired

d)

in cases (a) and (b) only

32.

On which of the following grounds, a partner may apply to the court for dissolution of the firm?

a)

insanity of a partner

b)

perpetual losses in business

c)

misconduct of a partner

d)

all of the above.

33.

The Partnership Act extends to

a)

Whole of India

b)

Whole of India except Jammu and Kashmir

c)

Whole of India except Kashmir

d)

Whole of India except Jammu

34.

The term partnership has been defined in ............

a)

section 2

b)

section 3

c)

section 4

d)

section 5

35.

Partnership arises from

a)

Operation of law

b)

Agreement

c)

Status

d)

All of these

36.

An agreement of partnership can be........

a)

Oral or in writing

b)

In writing only

c)

Express or implied

d)

Both (a) and (c)

37.

A and B having a joint house. They let it to C and share rent among themselves. They are

a)

Partners

b)

Company

c)

Co-owners

d)

Club

38.

When a partner of a firm agrees to share his profit with an outsider, it is ..............

a)

Particular partnership

b)

Sub partnership

c)

Partnership at will

d)

None o these

39.

When a person become a partner with another for a particular adventure or undertaking, this kind of partnership is called......................

a)

Particular partnership

b)

Sub partnership

c)

Partnership at will

d)

None of these.

40.

When the partners carry on the business even after the expiry of agreed fixed period, it becomes................

a)

Illegal association

b)

Partnership by will

c)

Particular partnership

d)

None of these.

41.

A person who lends his name to the firm without having any real interest in the firm, is a

a)

Active partner

b)

Nominal partner

c)

Dormant partner

d)

Inactive partner

42.

A person who is given share by a partner is a

a)

Active partner

b)

Partner by holding out

c)

Dormant partner

d)

Sub partner

43.

Partner by holding out is also known as............

a)

Active partner

b)

Nominal Partner

c)

Dormant partner

d)

Sub partner

44.

For a valid partnership, there must be.........

a)

Sharing of profits

b)

Sharing of lossess

c)

Both (a) and (b)

d)

None of these

45.

The liability of minor admitted to the benefit of partnership is.................

a)

Limited only to the extent of his share in profits and property

b)

No liability

c)

Similar to that of any other partner

d)

Unlimited liability

46.

A partner who has not entered into partnership, but represent himself a partner is

a)

Nominal partner

b)

Partner by holding out

c)

Active partner

d)

Sleeping partner

47.

Which of the following can become the partner in a partnership firm?

a)

Company

b)

Firm

c)

HUF

d)

Person of unsound mind.

48.

A partner is liable for

a)

Acts of the firm before becoming partner

b)

Acts of the firm after becoming partner

c)

After retirement but before giving public notice

d)

Both (b) & (c)

49.

Which of these acts falls within implied authority?

a)

Withdraw any suit or proceeding filed on behalf of the firm

b)

Compromise or relinquish any claim of the firm

c)

Hiring solicitors to defend actions against the firm

d)

All of these.

50.

For acts of the firm done after the death of partner, his estate is................

a)

Liable

b)

Not liable

c)

May be liable

d)

None of these