WorksheetsCAF-LAW-5P2
Total questions: 100
Worksheet time: 2hrs 28mins
The incorporation document must be accompanied by a compliance statement made by which of the following?
An advocate or CS or CA or Cost Accountant and any one subscriber.
Any partner only.
The Registrar after inspection.
Any government official.
X and Y subscribe names for incorporation; they file the incorporation document but omit the registered office address. Registrar retains the document — proper outcome?
Registrar will not register until address provided.
Registrar will register within 14 days anyway.
Registrar may register but send notice to change later.
LLP deemed registered without defect.
A person knowingly files a false compliance statement for incorporation. The chapter prescribes the statutory maximum imprisonment of:
2 years.
6 months.
5 years.
No imprisonment mentioned.
Under Section 6, LLP has only one partner and continues business for 7 months. That remaining partner who knew of the single-partner status is:
Personally liable for obligations incurred during that period.
Protected by limited liability regardless.
Liable only if ROC obtains court order.
Liable only after 12 months.
A registered LLP wants to remove the words “LLP” from its name and instead use “Limited”. Permitted?
No — the name must end with “limited liability partnership” or “LLP”.
Yes — either “Limited” or “LLP” acceptable.
Yes — if Central Government permits.
Yes — for foreign LLPs only.
The Registrar issues certificate of incorporation. That certificate is:
Conclusive evidence that the LLP is incorporated by the name specified.
Prima facie evidence only.
Subject to tribunal confirmation.
Revocable at any time without reason.
A proposed LLP reserves a name. The reserved name validity period (as per chapter) is:
3 months from intimation by Registrar.
1 month only.
6 months.
12 months.
If an LLP’s registered name is identical or too nearly resembles a trade mark, the Central Government may direct it to change name within:
3 months.
15 days.
1 year.
No specific period given.
A LLP incorporated on 15 October 2019 — under the chapter, its financial year may end on:
31 March 2021 (special rule for incorporation after 30 Sep).
15 October next year only.
31 March 2020 only.
30 September 2020.
Which one is NOT included in the chapter’s list of important definitions?
Body corporate.
Designated partner.
Liquidator (of LLP).
Foreign LLP.
A LLP may have a common seal — which of the following is TRUE as per chapter?
Common seal is optional; if used, affixed in presence of at least two designated partners.
Common seal is mandatory.
Common seal must be kept at ROC.
Only one partner can affix the seal.
The chapter states mutual rights and duties of partners in absence of a formal agreement are governed by:
The First Schedule of the LLP Act.
The Indian Partnership Act, 1932.
Companies Act schedules.
Central Government notifications only.
A person who has applied to be adjudicated insolvent: can they be a partner on incorporation?
No — such person cannot become partner.
Yes — with court permission.
Yes — if body corporate nominee.
Yes — if designated partner not required.
Resident in India for DP purposes (as per the chapter) means a person who has stayed in India for at least:
120 days during the financial year.
182 days during the previous year.
365 days in two years.
60 days in the current year.
The incorporation certificate must be issued by Registrar within:
14 days after compliance with prescribed requirements.
30 days always.
60 days if fees paid.
No timeline specified.
A LLP changes its registered office; the change takes effect:
Only upon filing notice of change with the Registrar in prescribed form.
Immediately on board resolution.
Only after ROC inspection.
After 30 days automatically.
If LLP contravenes registered office provisions, penalty per day (chapter) is:
500 per day, up to 50,000 maximum for the LLP and each partner.
1000 per day without cap.
5000 once.
No penalty specified.
The LLP Agreement, where executed, governs:
Mutual rights and duties of partners and their relations with LLP.
Only capital contributions.
Only statutory filings.
ROC powers.
Which of the following does the chapter explicitly say LLP cannot be formed for?
Non-economic/charitable purpose (LLP must be for profit).
Professional services.
Small business.
Venture capital.
A conversion schedule in the Act that deals with conversion of a firm into LLP is:
Second Schedule.
First Schedule.
Third Schedule.
Fourth Schedule.
Under the chapter, which schedule contains mutual rights and duties where there is no formal agreement?
First Schedule.
Second Schedule.
Third Schedule.
Fourth Schedule.
Small LLP criteria (chapter) give contribution limit as upto:
₹25 lakh (subject to prescribed higher amount not exceeding ₹5 crore).
₹10 lakh only.
₹50 lakh only.
No contribution limit in chapter.
For “small LLP”, turnover threshold in the immediately preceding year per chapter is upto:
₹40 lakh (subject to higher prescribed amount not exceeding ₹50 crore).
₹1 crore only.
₹10 lakh only.
Not defined.
Which of the following is a characteristic of LLP according to chapter?
Perpetual succession.
Unlimited liability of partners in all cases.
Directors elected by shareholders.
Mandatory audit in all cases (chapter doesn’t state always).
The effect of registration (Section 14): a registered LLP can:
Sue and be sued in its name, hold property, have a common seal, and do acts as bodies corporate.
Only hold movable property.
Cannot be sued in its name.
Must have court permission to hold immovable property.
If Registrar accepts compliance statement under s.11(1)(c) as sufficient evidence of subscription requirement, such acceptance is:
Permitted — Registrar may accept it as evidence.
Prohibited — Registrar must inspect all documents physically.
Void unless tribunal confirms.
Only allowed for foreign LLP.
A LLP changes its name under s.17 — within how many days must it give notice of change to Registrar along with Government order?
15 days.
3 months.
30 days.
No notice required.
After changing name, LLP must change its name in the LLP agreement within:
30 days of change in certificate of incorporation.
60 days.
7 days.
No timeframe.
Which of the following statements about mutual agency in LLP (per chapter) is CORRECT?
Partners are agents of the LLP only; one partner cannot bind another by independent acts.
Each partner binds all others for any act always.
Mutual agency identical to partnership firm in all respects.
Mutual agency does not exist even vis-à-vis LLP.
A LLP incorporated with only one individual DP and one corporate partner — is it valid per chapter?
No — every LLP must have at least two designated partners who are individuals and at least one resident.
Yes — corporate partner suffices as DP.
Yes — if corporate partner nominates a director.
No — at least three DPs required.
Which of these is explicitly stated as NOT included in “body corporate” definition in chapter?
A corporation sole and a co-operative society.
A private company.
An LLP.
A foreign company.
A foreign LLP establishes a place of business in India. Under the chapter it is termed:
Foreign LLP.
Joint venture only.
Indian LLP automatically.
A branch office only.
In absence of any LLP agreement, the mutual rights and duties are governed by:
First Schedule provisions.
Indian Partnership Act.
ROC circulars only.
Central Government order only.
Which of the following is a correct incorporation element per the chapter?
Statement in prescribed form made by an advocate/CS/CA/CWA and by a subscriber that requirements complied with.
Arbitration clause mandatory.
Inspector’s certificate mandatory.
Statutory auditor signature mandatory.
The LLP Act as per chapter contains how many sections and schedules?
81 sections and 4 schedules.
50 sections and 2 schedules.
100 sections and 6 schedules.
10 sections only.
When LLP files incorporation documents satisfying ss.11(1)(b) and (c), Registrar shall:
Retain incorporation document and register it and give certificate within 14 days.
Forward to Central Government for approval.
Publish notice in newspapers only.
Call for public comments for 30 days.
Which of these is an advantage of LLP noted in the chapter?
Easy to form and partners enjoy limited liability.
Free from all statutory compliance.
Unlimited partner liability.
Exempt from taxes.
The chapter states LLP is suitable for:
Professionals, small enterprises, venture capital investments, and knowledge/technology fields.
Only manufacturing concerns.
Only government undertakings.
Only banks.
A LLP is said to be an “artificial legal person” in chapter — which of the following consequences was stated?
It cannot marry, take oath, or be sent to jail, but can hold property and sue.
It may be imprisoned like an individual.
It has personal rights identical to natural persons in all respects.
It cannot hold movable property.
Under the chapter, who is primarily responsible for legal compliance of LLP?
Designated partners.
Every partner equally.
The Registrar.
The Central Government.
The chapter makes clear LLP cannot be created for:
Charitable non-economic purpose (must be for profit).
Providing professional services.
Scientific research with profit motive.
Small sector enterprises.
Which provision states that the Indian Partnership Act, 1932 does NOT apply to LLP?
Section 4 (Non-applicability) — subject to other provisions.
Section 2 only.
Section 10 only.
No provision; both Acts apply concurrently.
A proposed name is undesirable in opinion of Central Government — Registrar should:
Refuse registration of that name.
Register it but add suffix.
Approve it conditionally.
If LLP is registered with a name too nearly resembling an existing company and does not change it within time, the Central Government may:
Allot a new name and Registrar will issue fresh certificate.
Dissolve LLP immediately.
Fine the company director only.
Allow both names to coexist.
The chapter’s example defines resident in India for DP purposes as a person who stayed in India for not less than 120 days during the:
Financial year.
Calendar year.
Two preceding years.
Incorporation month only.
A LLP may change its registered office and such change will take effect only upon:
Filing notice with Registrar in prescribed manner and complying with conditions.
Passing internal resolution only.
Informing partners only.
Immediate operation without filing.
Which of these is NOT a characteristic of LLP listed in the chapter?
Directors elected by public shareholders.
Limited liability.
Perpetual succession.
Separate legal entity.
The chapter specifies that foreign nationals can:
Become partners in a LLP.
Never become partners.
Be only nominee partners.
Only be designated partners.
A person found of unsound mind by competent court (finding in force) can:
Not be a partner of LLP.
Be designated partner nonetheless.
Become partner with consent of ROC.
Become partner only as nominee.
Minimum number of partners required on incorporation is:
Two.
One.
Three.
No minimum.
If a LLP’s partner list includes bodies corporate and individuals, designated partners requirement (chapter) mandates:
At least two individuals who are partners or nominees act as designated partners.
Bodies corporate may be sole designated partners.
One individual sufficient.
All partners must be individuals.
The Chapter’s “Effect of registration” includes which of the following about seal?
LLP may have a common seal if it decides to have one.
Seal must be deposited with ROC.
Seal must always be used for contracts.
Seal is prohibited.
The chapter indicates LLP is appropriate for venture capital because:
It combines risk capital with professional expertise and flexible structure.
It offers tax exemptions to venture funds.
It limits government oversight.
It guarantees quick IPO.
Which of the following is required among incorporation documents per chapter?
Name, proposed business, registered office address, names & addresses of partners and designated partners, and prescribed other information.
Only MOA and AOA.
Only DPIN numbers.
Only bank statements.
The chapter mentions conversion of which entities into LLP (select description matching chapter)?
Firm, private company, and unlisted public company (Second, Third, Fourth Schedules).
Listed company only.
Government departments only.
Banks only.
A LLP whose incorporation document is registered — the certificate of incorporation is signed and authenticated by:
The Registrar with official seal.
Any designated partner.
Central Government.
The auditor.
The chapter states that LLP’s partners may include:
Any individual or body corporate subject to disqualifications listed (unsound mind, undischarged insolvent, pending insolvency application).
Only Indian citizens.
Only professionals.
Only companies.
The chapter’s example about designated partners highlights that naming two non-resident persons as DPs would:
Not satisfy requirement — at least one DP must be resident.
Be acceptable if one is a body corporate.
Be acceptable with ROC permission.
Automatically triggered fine.
The chapter lists “business” definition which includes:
Every trade, profession, service and occupation except activities excluded by Central Government.
Only trading and manufacturing.
Only profit and non-profit activities.
Activities overseas only.
In the incorporation process the Registrar may accept the compliance statement under s.11(1)(c) as sufficient evidence that subscribers have complied with subscription requirement — this saves:
Need for independent inspection of subscription by Registrar.
Need for any further documentation ever.
Criminal liability removal.
Requirement for DPIN.
If LLP changes name under s.17 and fails to give notice to Registrar within 15 days, subsequent statutory consequence in chapter is:
Central Government may allot a new name and Registrar will issue fresh incorporation certificate.
Immediate dissolution.
Fine 1 lakh.
Auditor appointment by Registrar.
Which of the following is TRUE about “entity” as per chapter?
Entity includes any body corporate and includes, for certain sections, a firm setup under Indian Partnership Act, 1932.
Entity only means LLP.
Entity excludes firms always.
Entity equals shareholder.
Under the chapter, every form or application required to be filed shall be:
Filed in computer-readable electronic form on MCA website and authenticated by partner or designated partner using electronic/digital signature.
Filed physically only.
Filed with local police.
Filed only annually by auditor.
A LLP wants to register a name that “in opinion of Central Government is undesirable” — the Registrar should:
Not register the name.
Register after 90 days automatically.
Register and send notice to proprietor.
Register only if proprietor pays extra fee.
The chapter explains that LLP is a hybrid — combining limited liability (company) and:
Flexibility of partnership.
Features of sole proprietorship.
Banking regulations.
Government enterprise rules.
Which of these filing penalties is explicitly mentioned in the chapter?
Penalty of 500 per day upto 50,000 for default regarding registered office.
Penalty 10,000 per day for late annual return.
No penalties mentioned.
Automatic criminal prosecution for any default.
A LLP agreement is absent — which will apply automatically to govern internal relations?
First Schedule of the LLP Act (mutual rights & duties).
Companies Act rules.
Indian Partnership Act in full.
No rules apply — partners are free.
The chapter states LLP’s liability:
LLP is liable to the full extent of its assets while partners’ liability limited to their agreed contribution (except in willful fraud).
Partners always personally liable for all LLP debts.
LLP never liable; partners only.
Liability randomly apportioned.
Under the chapter, which is required for designated partner appointment at incorporation?
DPIN (Designated Partner Identification Number) allotted by MCA (mentioned under essential elements).
Certificate of practice only.
ROC permission for each DP individually.
Ministry of Law approval.
The chapter’s “Characteristics” box lists which of the following as an LLP trait?
Investigation (Central Government power to investigate affairs).
No legal compliance at all.
Mandatory public listing.
Unlimited partners’ liability in all cases.
A LLP’s partner wants to admit a minor to the benefits of LLP — chapter position?
Minor cannot be admitted to benefits of LLP.
Minor may be admitted with consent of partners.
Minor can be full partner if parent is partner.
Minor can be designated partner.
The chapter prescribes that designated partners are responsible for:
Legal compliances of the LLP.
Only profit distribution.
Voting rights of shareholders.
Tax assessments of unrelated companies.
The chapter notes that LLP may be used for professions such as:
CA, CS, CMA, Advocates, Engineers, Doctors, Consultants.
Only manufacturing.
Only agriculture.
Only retail trade.
A proposed LLP file for reservation of name — Registrar satisfied the name is not rejectable — he reserves name for a period of:
3 months from intimation.
1 month.
6 months.
12 months.
The chapter states “Business” excludes:
Any activity which Central Government may, by notification, exclude.
All services.
All professions.
Agricultural activity only.
A LLP’s certificate of incorporation being conclusive means third parties:
Can rely on it for existence and name of LLP.
Must independently verify existence always.
Cannot rely on certificate under any circumstance.
Must apply to ROC every time.
In conversion facts limited in chapter: which schedule deals with conversion of a private company into LLP?
Third Schedule.
First Schedule.
Second Schedule.
Fourth Schedule.
LLP’s minimum designated partners who must be individuals (chapter) are:
At least two, of whom at least one shall be resident in India.
At least one only.
At least three.
No such requirement.
Under the chapter, a partner who is an undischarged insolvent is:
Incapable of becoming partner.
Fully capable to become partner.
Can be partner if nominated by court.
Can be DP only.
The chapter’s text states that LLP allows partners to:
Organise internal structure as partnership but enjoy limited liability.
Evade all statutory duties.
Transfer all liabilities to Central Government.
Escape taxation entirely.
A LLP incorporated but fails to mention the names of designated partners in incorporation document — consequence per chapter?
Registrar will not complete registration until incorporation document contains names and addresses of designated partners.
Registration completes without names and they can be added later.
Registrar will register and appoint DPs himself.
No consequence.
Which of these is true about the chapter’s treatment of e-filing?
Every form/application to be filed electronically on MCA site and authenticated by partner or designated partner using electronic/digital signature.
Physical filing is preferred.
Email attachment to Registrar sufficient.
Only auditors can e-file.
What does the chapter say about LLP being allowed to hold property?
It may acquire, own, hold and develop or dispose of property movable or immovable, tangible or intangible.
It can only own movable property.
It cannot hold immovable property.
It must obtain central permission to hold property.
The chapter notes LLP cannot be a substitute for:
A vehicle for non-profit charitable purposes (LLP is for profit).
A structure for professionals.
A form for venture capitalists.
A basis for small enterprises.
A LLP’s partner roster falls below two partners; if it continues more than six months and the sole remaining partner knows, the chapter says he shall be:
Personally liable for obligations incurred during that period.
Protected by LLP limited liability.
Liable only for amounts above capital.
Automatically replaced by ROC.
Which schedule handles conversion of an unlisted public company into an LLP?
Fourth Schedule.
First Schedule.
Second Schedule.
Third Schedule.
A LLP agreement is silent on some partner duties; chapter provides recourse by:
Applying First Schedule provisions to fill gaps.
Applying Companies Act.
Applying partnership firm rules automatically.
Leaving gaps unregulated.
Who administers the LLP Act according to the chapter?
Ministry of Corporate Affairs and Registrar of Companies.
Ministry of Finance only.
Supreme Court.
Reserve Bank of India.
The chapter states the Central Government may frame Rules with regard to the Act and can amend them by:
Notification in the Official Gazette from time to time.
Registrar discretionary orders only.
A partner’s contribution to an LLP according to the chapter may be:
Tangible or intangible or both (contribution not limited to cash).
Cash only.
Gold only.
Bank guarantee only.
Under the chapter, which of the following is true about an LLP’s “perpetual succession”?
Death, insanity, retirement or insolvency of partners does not affect the LLP’s existence.
The LLP dissolves on the death of the first partner.
The LLP must re-register every 5 years.
Perpetual succession applies only to companies.
The chapter lists Investigation as a characteristic — which authority has power to investigate LLP affairs?
Central Government (by appointing a competent authority).
Registrar of Companies only.
Court only.
Local police only.
The chapter’s summary mentions LLPs are likely to provide multidisciplinary solutions internationally because:
Professionals can combine knowledge and risk capital in flexible vehicles.
An LLP grants diplomatic immunity.
An LLP always obtains foreign licences.
An LLP exempts partners from professional ethics.
If the Registrar is satisfied that the requirements of ss.11(1)(b) and (c) have been complied with but clause (a) (subscription by two or more persons) is doubtful, the Registrar may:
Accept the compliance statement as sufficient evidence and proceed.
Refuse to act and refer to the tribunal immediately.
Strike off the proposed LLP.
Require ministerial approval.
An LLP incorporated with a name infringing an existing trade mark — the proprietor of the trade mark can apply within how many years from the date of incorporation or change of name to maintain the application?
3 years.
1 year.
6 months.
10 years.
The chapter emphasizes an LLP is NOT relieved of liability for obligations as a separate entity when:
Partners’ internal agreements cannot absolve the LLP of external obligations.
Partners agree otherwise in private.
The Central Government modifies liabilities arbitrarily.
The LLP chooses to disclaim obligations.
The chapter’s “Important Concepts” box lists in-scope items — which of these is explicitly included?
Conversion into LLP.
Stock exchange listing.
Nationalization.
Agricultural produce marketing.
The chapter requires at incorporation that one of the subscribers must file a statement that the LLP is organized and operates on the basis of an agreement — who may make this statement (per s.11)?
An advocate, Company Secretary, Chartered Accountant or Cost Accountant engaged in formation and by any one subscriber.
Any employee of the proposed LLP only.
Only the Registrar.
Only the Central Government.
Which of the following is NOT a requirement for the incorporation of an LLP?
Having a registered office.
Approval from the Central Government.
Filing of incorporation documents.
Obtaining a certificate of incorporation.
In case of a dispute among partners, which document primarily governs the resolution?
Memorandum of Association.
LLP Agreement.
Partnership Act.
Articles of Association.
