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Partnership Act

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

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

a)

goodwill

b)

share in property

c)

dissolution

d)

nothing

2.

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

a)

any majority of the partners

b)

a two-third majority of the partners

c)

three-fourth majority of the partners

d)

unanimous consent of all the existing partners

3.

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

a)

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

b)

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

c)

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

d)

When an act is done fraudulently or negligently.

4.

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?

a)

The firm is also declared insolvent.

b)

Sham has to repay the debts of the firm.

c)

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

d)

The court has to give the order for dissolution.

5.

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

a)

The insanity of a partner

b)

Misconduct by the partner

c)

Insolvency of partner

d)

Incapacity of partner

6.

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

a)

To buy or sell goods on account of the partnership

b)

To borrow money for the purposes of the firm

c)

To enter into partnership on behalf of the firm

d)

To engage a lawyer to defend actions against the firm

7.

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 ________.

a)

void

b)

lawful

c)

voidable

d)

illegal

8.

The relation of partners arises from _________

a)

status

b)

an agreement

c)

legal provisions

d)

mutual understanding

9.

A partnership firm is a/an _

a)

distinct legal entity from its partners

b)

independent juristic person agent of its partners

c)

agent of its partners

d)

none of the these

10.

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

a)

misconduct by a partner

b)

insanity of partner

c)

completion of venture

d)

persistent breach of the agreement by a partner

11.

Upon the coming into force of the Limited Liability Partnership Act, 2008,

a)

the Indian Partnership Act, 1932 stands repealed

b)

the provisions of the Indian Partnership Act, 1932 ipso facto apply to limited liability partnerships (LLPs) also

c)

both the acts coexist, but the provisions of the Indian Partnership Act, 1932 are not applicable to LLPs, same as otherwise provided

d)

the Limited Liability Partnership Act, 2008 is applicable to only metropolitan cities

12.

What is the partnership written agreement known as?

a)

Partnership contract

b)

Agreement

c)

Partnership deed

d)

Partnership Act

13.

Which is not a feature of a partnership business?

a)

Ease of formation

b)

Limited liability

c)

Limited life

d)

Mutual agency

14.

The maximum number of members that can be a part of an LLP is __

a)

20

b)

50

c)

200

d)

no limit

15.

The Registrar shall reserve the proposed name of the LLP to be incorporated for a period of ______ from the date of intimation by the Registrar.

a)

3 months

b)

1 month

c)

6 months

d)

none of these