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WorksheetsM.Law: Partnership Act 1932
Total questions: 50
Worksheet time: 25mins
The maximum number of partners is mentioned in:
The Partnership Act
The Companies Act
The General Clauses Act
The Societies Registration Act.
In the absence of agreement to the contrary all partners are:
not entitled to share profits
entitled to share in capital ratio
entitled to share in proportion to their ages
entitled to share profits equally.
A partnership at will is one:
which does not have any deed
which can be terminated by a notice from any partner
which cannot be dissolved.
which does not have any partner
Each of the partner is _________
only agent of the firm
only co-partner of the firm.
only representative of the firm
principal as well as an agent of the firm
The Indian partnership act came into force on
1 st October,1932
1 st July, 1930
1 st October,1930
1 st September, 1932
An unregistered firm cannot claim ________
True
False
Partly True
Partly False
Which of the following statements, about the registration of firm, is not true?
it may be done at the time of formation
it may be done at any time after its formation.
it may be done before filing a suit against third party
it must be done at the time of its formation
The registration of the firm is considered complete when
Registrar files the statement and makes entries in the Register of firms
application for registration complete in all respects is filed with the Registrar
Court records the statement and certifies the entries in the Register of firms.
Registrar gives notice of registration to all partners
Which of the following is not disability of an unregistered firm?
it cannot claim a set-off exceeding Rs.100/-
it cannot file a suit against third parties
it can be sued by a third party
its partners cannot files a suit against a firm
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......................
partnership at will
partnership for a fixed term
particular partnership
any of the above.
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
True
Partly True
Partly False
False
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:
partnership
laborers
master-servant
carpenters
The partnership relation exist when:
joint owner of some property share profit or loss arising from the property
two friends A (age 19 years), B (17 years) decide to form a partnership
A and B agreed to sell clothes for their joint account and share the profits
a person receives a share of profit as a part of his remuneration
The partnership firm becomes an illegal association, when:
the number of partners in a non-banking business exceeds 10
the number of partners in a banking business exceeds 10
the number of partners in a banking business exceeds 100
none of above.
A partnership firm may be registered with:
High Court
Registrar of Companies
Registrar of Firms
Registrar of Partners
In case of registered partnership firm;
a partner cannot file a suit against any partner of the firm
a partner cannot file a suit against the firm
the firm cannot file a suit against third parties
None of the above
Active partner is one who:
has an ownership in the business of the firm
makes a show of authority.
actively shares the profits
actively participates in the day to day activities of the firm
A partner can retire on _________
on the balance in the capital account reaching a certain amount
in accordance with the provisions of partnership deed
on the condition of his nominee becoming a partner.
reaching the age of superannuation
A new partner can be admitted in the firm with the consent of:
all the partners
simple majority of partners
new partner only.
special majority of partners
A partner may retire from an existing firm:
by written notice in case of partnership at will
with consent of all partners
as per express agreement
all of the above
Which of the following statements is not true about minor's position as a partner?
He cannot become a full-fledged partner in a new firm
He can become partner on becoming a major
He can be admitted only to the benefits of any existing firm.
He can automatically become partner immediately on becoming a major
Every partner has the right to
take part in the business of the firm
give his name to firm
to use the property of the firm for personal purposes
to share exclusive profits
A partner can be expelled by complying the following conditions except_______.
such expulsion is in good faith
the majority of the partner agree on such expulsion
the partner to be expelled is given an opportunity of being heard
compensation is paid to the expelled partner
On dissolution the partners remain liable till.........
the registrar strikes off the name
public notice is given
partners dues are paid off
accounts are settled
Which of following is the right of a retired partner ?
right to share profits
right to take part in business
right to start a competing business
right to receive remuneration.
Which of the following acts are not included in the implied authority of a partner?
to buy or sell goods on accounts of partners
to engage a lawyer to defend actions against firm.
to enter into partnership on behalf of firm
to borrow money for the purposes of firm
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?
sleeping partner
active partner
representatives of deceased partner
both (a) and (c)
Doctrine of implied authority of a partner applies to the;
act of settling accounts of the creditor
act of admitting a liability in suit against the firm
act of acquiring immovable property on behalf of the firm
all of these
Death of 2 out 8 partners in a partnership firm has the effect of....
legal heirs automatically joining the firm
automatic dissolution of the partnership firm
automatic dissolution of the partnership but not the firm
all of the above
The reorganization of the firm takes place in case of........
admission of a partner
expulsion or death of a partner
retirement of a partner
all of the above.
A partnership firm is compulsorily dissolved where:
all partners have become insolvent
firm‟s business has become unlawful
the fixed term has expired
in cases (a) and (b) only
On which of the following grounds, a partner may apply to the court for dissolution of the firm?
insanity of a partner
perpetual losses in business
misconduct of a partner
all of the above.
The Partnership Act extends to
Whole of India
Whole of India except Jammu and Kashmir
Whole of India except Kashmir
Whole of India except Jammu
The term partnership has been defined in ............
section 2
section 3
section 4
section 5
Partnership arises from
Operation of law
Agreement
Status
All of these
An agreement of partnership can be........
Oral or in writing
In writing only
Express or implied
Both (a) and (c)
A and B having a joint house. They let it to C and share rent among themselves. They are
Partners
Company
Co-owners
Club
When a partner of a firm agrees to share his profit with an outsider, it is ..............
Particular partnership
Sub partnership
Partnership at will
None o these
When a person become a partner with another for a particular adventure or undertaking, this kind of partnership is called......................
Particular partnership
Sub partnership
Partnership at will
None of these.
When the partners carry on the business even after the expiry of agreed fixed period, it becomes................
Illegal association
Partnership by will
Particular partnership
None of these.
A person who lends his name to the firm without having any real interest in the firm, is a
Active partner
Nominal partner
Dormant partner
Inactive partner
A person who is given share by a partner is a
Active partner
Partner by holding out
Dormant partner
Sub partner
Partner by holding out is also known as............
Active partner
Nominal Partner
Dormant partner
Sub partner
For a valid partnership, there must be.........
Sharing of profits
Sharing of lossess
Both (a) and (b)
None of these
The liability of minor admitted to the benefit of partnership is.................
Limited only to the extent of his share in profits and property
No liability
Similar to that of any other partner
Unlimited liability
A partner who has not entered into partnership, but represent himself a partner is
Nominal partner
Partner by holding out
Active partner
Sleeping partner
Which of the following can become the partner in a partnership firm?
Company
Firm
HUF
Person of unsound mind.
A partner is liable for
Acts of the firm before becoming partner
Acts of the firm after becoming partner
After retirement but before giving public notice
Both (b) & (c)
Which of these acts falls within implied authority?
Withdraw any suit or proceeding filed on behalf of the firm
Compromise or relinquish any claim of the firm
Hiring solicitors to defend actions against the firm
All of these.
For acts of the firm done after the death of partner, his estate is................
Liable
Not liable
May be liable
None of these
