Ipa MCQ

1.
The Limited Liability Partnership Act, 2008 (6 of 2009) is an Act to make provisions for the
(a) formulation and regulation of General Partnership Firms and Limited Liability formed under the Indian
Partnership Act, 1932
(b) formulation and regulation of Joint Ventures with unlimited liability formed under Indian Contract Act, 1872
(c) Formulation and regulation of Chit Funds Organisations with unlimited liability formed under the Chit Funds Act,
1982
(d) formation and regulation of a Limited Liability Partnership with limited liability formed under the Limited Liability
Partnership Act, 2008.
2. Foreign Limited Liability Partnership (FLLP) under the Limited Liability Partnership Act, 2008 means
(a) a Limited Liability Partnership formed, incorporated or registered in that country to which the partners belong
(b) a Limited Liability Partnership formed, incorporated or registered under Economic Council of UNO
(c) a Limited Liability Partnership formed, incorporated or registered in Indian territory
(d) a Limited Liability Partnership formed, incorporated or registered outside India which establishes a place of
business within India.
3. Every Limited Liability Partnership as per the Limited Liability Partnership Act, 2008 shall have at least two
Designated Partners (DPs) who are individuals and
(a) at least one among them shall be resident in India
(b) both of them shall belong to one family residing in India
(c) both of them should be non-resident Indians (NRIs)
(d) both of them should belong to a single country outside India.
4. Prior to the Indian Partnership Act, 1932 which came into force from 1 October, 1932 except section 69 which
came into force from 1 October, 1933, the law of partnership was provided in
(a) Sale of Goods Act, 1930 (b) Indian Contract Act, 1872
(c) Transfer of Property Act, 1908 (d) English Partnership Act, 1890.
5. Unilateral dissolution of partnership by partner who is minority shareholder is

(a) not permissible (b) permissible
(c) permissible if all minority share-holders agree (d) permissible if Memorandum of Association prescribes.
6. An act, to be called on 'act of a firm', within the meaning of section 2(a) of the Indian Partnership Act, 1932 is
(a) every act of the partners
(b) only such acts which give rise to a right enforceable by or against the firm
(c) such acts which do not give rise to a right enforceable by or against the firm
(d) either (a) or (b) or (c).
7. Any act or omission, to be an act of a firm, within the meaning of section 2(a) of the Indian Partnership Act, 1932
must be act or omission of
(a) all the partners (b) any of the partner (c) agent of the firm (d) either (a) or (b) or (c).
8. Whether an act of a partner or agent can be regarded as an 'act of the firm' is a

(a) question of fact (b) question of law (c) mixed question of fact & law (d) either (a) or (c).
9. The term 'business has been defined under

(a) section 2(a) (b) section 2(b) (c) section 2(d) (d) section 2(e).
10. Under section 2(b) of the Indian Partnership Act, business includes
(a) every trade and occupation (b) every occupation and profession
(c) every trade, occupation and profession (d) every trade and profession.
11. The term 'partnership' has been defined under

(a) section 3 (b) section 4 (c) section 5 (d) section 6.
12. Under section 4 of the Indian Partnership Act, partnership is a

(a) compulsory legal relation
(b) creation of the choice and voluntarily agreement between the concerned parties
(c) a relation arising from status
13. Which of the following enactments insist for a written agreement of partnership
(a) the Indian Partnership Act, 1932 (b) the Indian Contract Act, 1872
(C) The Indian Registration Act,1908 (d) Either (a),(b) or (c)
14. A partnership can be

(a) a general partnership (b) a particular partnership (c) either (a) or (b) (d) only (a) and not (b).
15. Section 8 of the Indian Partnership Act, 1932 provides for

(a) a particular partnership (b) a general partnership (c) a partnership at will (d) all the above.
16. The relation of partnership arises from contract and not from status, has been prescribed under
Section 7 of the Indian Partnership Act provides for

(a) partnership in a particular adventure or undertaking (b) general partnership
(c) partnership at will (d) all the above.
A partnership firm is
a) a distinct legal entity from its partners (b) not a distinct legal entity from its partners
(c) a juristic person (d) either (a) or (c).
19. For the purposes of income-tax, a partnership firm

(a) can be assessed as an entity distinct and separate from its partners
(b) cannot be assessed as an entity separate and distinct from its partners
(c) can be assessed as an entity distinct and separate from its partners only with the permission of the court
(d) can be assessed as an entity distinct and separate from its partners only if all the partners agree for the same.
20. A partnership cannot be constituted by

(a) two individuals (b) two Hindu joint families (c) both (a) and (b) (d) neither (a) or (b).
21. The historic case laying down the test for determining the existence of a partnership is
(a) Grace v. Smith (b) Waugh v. Carver (c) Bloream v. Pell (d) Coxv. Hickman.
22. The mode of determining the existence of partnership has been laid down in
23. Which of the following in itself is not sufficient to constitute a partnership

(a) the sharing of profits by persons having a joint or common interest
(b) the receipt by a person of a share of the profits
(c) the receipt by a person of a payment varying with the profits earned by a business
(d) all the above.
24. Which of the following is a valid partnership

(a) partnership between two partnership firm
(b) partnership between one partnership firm and an individual
(c) partnership between individual members of one firm and the individual members of another firm
(d) neither (a) nor (b) nor (c).
25. A partnership firm is entitled to enter into a partnership with

(a) another firm (b) Hindu undivided family (c) an individual (d) neither (a) nor (b) nor (c).
26. Mutual agency among the partner is
(a) a test to determine the existence of a partnership (b) a legal incidence of partnership
(c) both (a) and (b) (d) neither (a) nor (b).
27. A Hindu undivided family is entitled to enter into an agreement of partnership with
(a) another joint Hindu family (b) another partnership firm (c) an individual (d) neither (a) nor (b) nor
(c).
28. Which of the following is a valid partnership

(a) partnership between the Karta of a joint Hindu family in his representative capacity and an individual co-parcener
of the same family
(b) partnership between two Hindu joint families
(c) partnership between a Hindu joint family and a partnership firm
(d) all the above.
29. Section 5 of the Indian Partnership Act, 1932 does not apply to
(a) Muslim Trading Family (b) Christian Trading Family
(c) Burmese Buddhist husband and wife carrying on the business (d) all the above.
30. Section 5 of the Indian Partnership Act, 1932 does not apply to
(a) Muslim Trading Family (b) Christian Trading Family (c) both (a) and (b) (d) only (a) and not (b).
31. The concept of partnership commensu-rate with

(a) principal and agent (b) co-owners of property (c) joint owners of property (d) all the above.
32. A right to participate in profits, although strong but not a conclusive test of partnership. It was so held in
(a) Tellis v. Saldanha (b) Coxv. Hickman (c) Re: Stanton Iron Co. (d) Grace v. Smith.
33. Which of the following is not an essential requisite for creating a partnership as per section 4
(a) an agreement to carry on a business (b) sharing of profits
(c) sharing of losses (d) business to be carried by all or any of them acting for all.
34. A person who has lent money to a person or firm engaged in a business and has agreed to take a proportion of
the profits of the business in addition to or in lieu of his interest, does not by that reason alone becomes a partner, in
business, has been laid down in
(a) Badeley v. Consolidated Bank (b) Janes v. Whitbread

(c) Marconis Wireless Telegraph Co. v. Newmam (d) Price v. Groom.
35. The Indian Partnership Act, 1932 provides for and recognises
(a) partnerships for a specified and fixed period (b) partnership for a specified and fixed venture
(c) both (a) and (b) (d) only (a) and not (b).
36. A partnership for which no period or duration is fixed, under the Indian Partnership Act,1932 is known as
(a) general partnership (b) partnership at will (c) particular partnership (d) co-ownership.
37. Under section 7 of the Indian Partnership Act, 1932, partnership at will is subject to
(a) one exception (b) two exceptions (c) three exceptions (d) five exceptions.
38. Which of the following is an exception to the partnership at will, as provided under section 7 of the Indian
Partnership Act, 1932
(a) where there is a provision for the duration of the partnership
(b) where there is a provision for determination of the partnership
(c) both (a) and (b)
(d) only (a) and not (b).
39. Where a partnership firm is constituted for a fixed period and after the expiration of t term, the firm continues to
carry on business, without any new agreement,
(a) the partnership stands extended till the new agreement is made
(b) the partnership becomes partnership at will
(c) the partnership becomes illegal
(d) the partnership stands dissolved on the date of expiry of the term and no partnership can be said to be in
existence.
40. In a partnership at will

(a) a partner of a firm can retire from the firm at any time by giving a notice of his intention to retire to his co-
partners
(b) a partner of a firm can dissolve the firm at any time by giving a notice of his intention to dissolve the firm to his
co-partners
(c) either (a) or (b)
(d) only (b) and not (a).
41. The test to determine whether the given partnership is a 'partnership at will' and "whether the partnership could
be dissolved by a single partner, has been laid down in
(a) Crawshay v. Maule (b) Abbot v. Abbot (c) Cuffe v. Murtagh (d) Kurumuthu T. Chettiar v. EM. Muthappa
Chettiar.
42. For constituting a partnership within the meaning of section 4 of the Indian Partnership Act, 1932
(a) the business has to be of permanent nature
(b) the business can be of temporary nature
(C) it is immaterial as to whether the business 1S of temporary or permanent nature
43. The principles governing partners' mutual relations have been laid down in
(a) Chapter II of the Indian Partnership Act (b) Chapter III of the Indian Partnership Act
(c) Chapter IV of the Indian Partnership Act (d)Chapter V of the Indian Partnership Act.
44. General duties of partners have been laid down in

(a) section 9 of the Act (b) section 10 of the Act (c) section 11 of the Act (d) section 13 of the Act.
45, Under section9 of the Indian Partnership Act, 1932., in doing best for the common body
(a) partner is regarded as a kind of trustee for the other partners
(b) partner is liable to render the accounts to other partners in a fiduciary capacity
(d) neither (a) nor (b).
46. Under section 10 of the Indian Partnership Act, every partner is under a duty
(a) to indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm
(b) to render true accounts and full information
(c) not to carry on any business other than that of the firm
(d) to be just and faithful to each other.
47. The rights and duties of partners inter se can be regulated and varied by the consent of the partners by virtue of
(a) section 14 of the Act (b) section 13 of the Act (c) section 12 of the Act (d) section 11 of the Act.
48. Under section 11 of the Indian Partnership Act, 1932, in case of any conflict between the provision of the Act and
the articles of the agreement, the articles of the agreement with it, will be
(a) valid (b) invalid
(c) voidable at the instance of any of the partner (d) viodable at the instance of a third party.
49. An agreement in restraint of trade in a partnership under section 11 of the Act is

(a) valid (b) voidable (c) void (d) invalid.
50. Section 12 of the Indian Partnership Act, 1932 is
(a) a statement of rights of the partners in reference to the conduct of business
(b) a statement of duties of the partners in the conduct of the business

(c) a mixed statement of rights and duties of partners in reference to the conduct of the business
51. Section 12(c) of the Indian Partnership Act provides for a

(a) rule of majority (b) rule of unanimity (c) both (a) and (b) (d) only (a) and not (b).
52. The rule of majority contained in section 12(c) of the Indian Partnership Act, 1932 is applicable in
(a) trivial matters (b) ordinary matters (c) fundamental matters (d) all the above.
53. The rule of unanimity contained in section 12(c) of the Indian Partnership Act, 1932 has a reference to
(a) fundamental matters (b) ordinary matters (c) trivial matters (d) all the above.
54. The rights and duties of a partner contained in section 12 of the Indian Partnership Act, 1932 are
(a) subject to the provision of the Indian Partnership Act, 1932
(b) subject to a contrary arrangement between the partners
(c) subject to the provisions of the ndian Contract Act, 1872
(d) subject to the provisions of the Indian Trusts Act, 1882.
55. An agreement to carry on business in partnership in the future creates a partnership

(a) immediateiy on the agreement
(b) on the date mentioned in the agreement irespective of whether the business has commenced or not on that date
(c) only on the date when the business is actually commenced
(d) never creates a partnership and any such agreerment is void.
56. Whether a partnership exists or not is a

(a) question of fact (b) question of law (c) mixed question of fact and law (d) either (a) or (c).
57. The maxim 'sociti mei socius meu socius non est' means
(a) my partner's partrner is not necessarily my partner (b) my partner's partner is necessarily my partner
(c) the partnership has become illegal (d) the partnerships stands dissolved by the 'act of God'.
58. The minimum number of persons required for a partnership is

(a) two (b) five (c) ten (d) twenty.
59. The maimum number of partners in a partnership, has been provided under
(a) the Indian Partnership Act, 1932 (b) the Indian Companies Act, 1956
(c) the ndian Contract Act, 1872 (d) the Indian Trusts Act, 1882.
60. Under section 11 of the Indian Companies Act, 1956 for non-banking businesse, tho minimum number of
partners can be
(a) ten (b) twenty (c) twenty-five (d) thirty.
61. For a banking business, the maximum of partners in a partnership, under section 11 of the Indian Companies Act,
1956, can be
(a) ten (b) fifteen (c) twenty (d) twenty-five.
62. A partnership in which the number of partners exceeds than that allowed under section 11 of the Indian
Companies Act, shall be
(a) valid (b) voidable at the instance of any of the partners
(c) voidable at the instance of third parties (d) illegal.
63. An illegal partnership
(a) can sue (b) can be sued (c) cannot be sued (d) can sue and be sued.
64. The members of an illegal partnership

(a) have a remedy against each other for the partnership dealings and transactions
(b) have no remnedy against each other for the partnership dealings and transactions
(c) have a remedy against each other for the partnership dealings and transaction only with the permission of the
court
(d) either (a) or (c).
65. If the partners are equally divided on a issue, the rule is: in re communi potior est conditio prohibentis', which
means
(a) those who forbid a change must have ther way
(b) those who do not forbid i.e.. in favour of the change, must have their way
(c) the discussion on the issue be deferred tor another day
(d) opinion on the issue be taken from an expert.
66. Partner has a right to have access to all the books of accounts etc., of the firm
(a) duríng the subsistence of the partnership (b) during the proceedings for the dissolution of the firm
(c) after the dissolution of the firm (d) all the above.
67. A partner has a right to examine the account books etc., of the firm
(a) himself (b) through legal representatives (c) through agent (d) either (a) or (b) or (c).
68. A partner can examine the books etc., of the partnership firm
(a) as many number of times without any restriction (b) once a year
(c) once a month (d) once a week.
69. Section 13 of the Indian Partnership Act, 1932 is

(a) a mixed statement of rights and duties of the partners
(b) a mixed statement of duties and liabilities of the partners
(c) a mixed statement of rights and liabilities of the partners
(d) a mixed statement of rights, duties and liabilities of the partners.
70. The rate of interest prescribed under section 13, where a partner, advances money beyond the amount of capital,
for the business of the partnership, is
(a) six percent (b) nine percent (c) twelve percent (d) fifteen percent.
71.Where a partner is entitled to interest on the Capital subscribed, such interest is payable
(a) out of profits only (b) out of capital if no profits (c) out of capital if losses (d) either (a) or (b) or (c).
72. Section 13of the Indian Partnership Act,1932 provides for

(a) Payment of remuneration to a partner as a matter of right
(b) Payment of remuneration to a partner only when there is an agreement to that effect between the partners
(c) non-payment of remuneration to a partner only when there is an agreement to that effect between the parties
(d) both (a) and (c).
73. Under section 13(b) of the Indian Partnership Act, 1932 all the partners are entitled to
(a) share the profits and losses in the ratio of their capital contributions
(b) share the profits and losses equally irrespective of any agreement between them to the contrary
(c) share the profits and losses equally in the absence of any agreement to the contrary between them
(d) share the profits and losses in the ratio of their personal efforts input.
74. Where a change occurs in the constitution of a firm and no new agreement is made
(a) the ratio of profit sharing shall become equal for all the partners
(b) the ratio of profit sharing shall remain the same to the extent to which it is consistent with the altered
composition of the firm
(c) the ratio of profit sharing shall change in the ratio of capital contributions
(d) the ratio of profit sharing shall change in the ratio of personal efforts/ labour input of the partners.
75. As a general rule, by virtue of section 13 of the Indian Partnership Act, 1932
(a) partner is not entitled to interest on the capital subscribed by him

(b) partner is not entitled to interest on the advance made over and above the share of capital
76. As regards the capital contribution in the partnership business, the status of a partner is that of
(a) a creditor of the firm (b) a partner of the firm (c) an employee of the firm (d) all the above.
77. The status of a partner, making advances to the firm for its business, over and above the capital subscribed, that
of
(a) a partner of the firm (b) a creditor of the firm (c) an employee of the firm (d) both (a) and (b).
78, On the dissolution of the partnernlhip

(a) the interest n capital ceanes run wherean interest of advances keeping running plo the date of payment
(b) the interest on capital and he interest on advances cease to un
(c) the interest on capital keeps rnning upto the date of paynnent whereas interest on advanceN cease to run
(d) the interest on capital as well an On advances keeps running upto the date of payment.
79. Ordinarily, on the overdrawing by the partners from the firm

(a) no interest is chargeable
(b) interest is chargeable @ 6% p.a.
(c) interest is chargeable @ 9% p.a.
(d) interest is chargeable @ 12"% p.a.
80. A partner has a right to indemnity for the acts
done in
(a) the ordinary & proper conduct of the
business
(b) an emergency
81. The right to indemnity is lost on
(a) the dissolution of the partnership
(b) the death of the partner
(c) the retirement of the partner

82. Section 13(f) of the Indian Partnership Act, 1932 provides for
(a) indemnity in favour of the partner against the firm
(b) indemnity in avour of the firm against a partner
(c) indemnity in favour of the third parties against the firm
(d) all the above.
83. An action for indemnity against a partner can
be brought by
(a) the firm only
(b) an individual partner
34. What constitutes the property of the firmn has
been dealt with in
(a) section 16
(b) section 15
(c) section 14
(d) section 13.
I5. Section 14 of the Indian Partnership Act, 1932
is
Page 14
(a) exhaustive (b) inclusive
(c) conclusive
86. Under section 14 of the Indian Partnership
Act, 1932, the property thrown into
Comm0n stock at the commencement of the
business
(a) becomes the property of the firm (b) remains the individual property of e partners in the shares contributed by
foe (c) becomes the individual property of the partners in equal shares irrespective their contributions and profit
sharing rati, (d) either (a) or (c).
87. A property belonging to a partners an entering into a partnership and used for the purposes of partnership
(a) becomes the property of the firm (b) remains the property of that partner
(c) becomes the property of the partner having highest share of capital contribution
(d) becomes the property of the partners in their profit sharing ratio.
88. A1l the benefits and liabilities arising out of a contract made on behalf of a partnership do
not
(a) belong to the partnership if the contract has been performed before the dissolution of the firm
(b) belong to the partnership if the contract has been performed before the retirement of the firm
(c) belong to the partnership if the contract has been performed after the dissolution of the firm or retirement of a
partner
(d) none of the above.
89. The property of the firm includes all property
(a) acquired by or for the firm
(b) for the Purposes or in the course 0f business of the firm
(C) property purchase with money belongs to the firm
(d) all the above.
90. When the property is purchased out o partnership funds but in the name 0T individual partner, it
(a) becomes an estate of the partner
(b) becomes a joint estate
(C) is a question of fact to be determined w reference to the intention of the partners
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id) is a question of law to be decided on legal principles.
When the personal property of a partner is being used in the business of the firm. it ia) is a question of fact to be
determined with reference to the partner's intention whether it has become the property of the firm
b) becomes the joint estate
(c) remains an estate of the partner
(d) is a question of law to be decided on legal principles.

e Under section 14 of the Indian Partnership At. 1932, goodwill of the business is
(a) property of the firm
(b) property of the managing partner
ic) property of the partner having the highest share in the profits
(d) property of the partner having the lowest share in the profits.
93. Since the partnership property vests in all the partners and every partner has an interest in the property of the
partnership, đuring the subsistence of partrnership
(aj a partrner can deal with the property as his
OWn
tb) a partner can deal with a portion of the property upto his share in the partnership,
as his oWn
Ic) a partner can deal with a specific iten of the partnership property as his own
{a) a partner cannot deal with any particular property or any portion of the property as hus own.
In a parinership property, a partner has
la) something in the nature of personal
ownership
(b) only certain rights
(d) either (a) or (b).
partner chooses to use any assets of the Partnership for his oWn Purpose, it gives rise to
ta) & civil iability of that partner
b) a criminal liability of that partner IC) both (a) and (b)
{d) either (a) or (b).
Where Partner is authorised to recover dues of the partnership & spend the same for the business of the partnership
and if he does not deposit the money s0 collected in the bank,
the partner is
b 3ty of criminal breach of trust
accountable civilly to the other partners
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(c) both (a) and (b) (d) either (a) or (b).
97. Goodwill of the partnership business is the
property of the partnership (a) under section 14
(b) under section 15
(c) under section 16
(d) under section 17(b).
98. The term 'goodwill is a thing very easy to describe but very difficult to define, is stated by
(a) Lord Herschell
(b) Lord Haldane
(c) Lord MacNaughten
(d) Lord Eldon.
99. Section 15 of the Indian Partnership Act provides that
(a) the property of the firm shall be held and used by the partners exclusively for the prposes of the business of the
firm
(b) the property of the firm can be used by the partners for any of his/ their personal use (c) the property of the firm
can be used by the partners for the personal use of all the partners
100. Section 15 of the Indian Partnership Act is a statement of a
(a) right of the partners
(b) duty of the partners
(c) privilege of the partners
(d) liability of the partners.
101. Section 16 of the Indian Partnership Act states
the
(a) duties of the partners
(b) rights of the partners
(c) privileges of the partners (d) all the above.
102, Section 16(a) of the Indian Partnership Act, 1932 (a) permits a partner to derive any profit for himself from the
use of business connection of the firm
(b) prohibits a partner to device any profit for himself from the use of business connection of the firm
(c) partially permits and partially prohibits a partner to devive any profits for himself from the use of business
connection of the firm
(d) either (b) or (c).
103. Under section 16(b) of the Indian Partnership Act, 1932 a partner is accountable for the
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profits, to the firm, of a business carried on by him which is
(a) of the same nature as that of the firm but not competing with the firm
(b) competing with that of the firm (c) either (a) or (b)
104. A partner is not accountable to the firm, for the profits derived for himself, as provided under section 16 of the
Indian Partnership Act, 1932
(a) by using the property of the partnership (b) from any transaction of the firm
(c) by using the firm name
(a) neither (a) nor (b) nor (c).
105. The proper remedy for breach of đuty imposed on a partner under section 11 of the
Indian Partnership Act, 1932 is
(a) a claim for profits of the business
(b) dissolution of the firm
(a) either (a) or (b).
106. Section 16 of the Indian Partnership Act, 1932
is, 'subject to
(a) the agreement betweern the partners
(b) the provisions of the Act
107. Section 17 of the Indian Partnership Act, 1932 provides for the mutual rights and đuties of the partners to
rermain the same in the event of (a) charnge in the constitution of the firm
(b) continuation of the partnership after the expiry of the term of partnership
(c) carrying out additional undertaking apart from the one for which the partnership is constituted
(d) all the above.
108. Where an established partnership business is continued, without any further contract between the parties, after
the death of one of the partners, the same shall be governed by (a) section 13 of the Act
(b) section 17 of the Act
(c) section 13 and section 17 (d) section 16 of the Act.
109. The rule of facit relocation is contained in
(a) section 17 of the Indian Partnershúp Act (b) section 15 of the Indian Partnership Act (c) section 13 of the Indiarn
Partnership Act (d) section 1l of the Indiarn Partnership Act.
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110. The legal effect of the rule of facit relocation
is that
(a) all the stipulations and conditions of the original contract come to an end with the end of the contract and cannot
be implied
terms of the renewal contract
(b) all the stipulations and conditions of a original contract remain in force and e implied term of the renewal
contract (c) all the stipulation and conditions of original contract remain in force, in so fr
as these are not inconsistent with ay
implied term of the renewal contract (d) either (a) or (c).
111. Which of the following terms of the original contract do not apply to the partnershin continued after the
expiration of the original
term
(a) a clause giving one partner an option of
buying the other's share within thre months after the expiration of the partnership by efflux of time
(b) a clause providing for arbitration for resolution of disputes
(c) a clause empowering either partner, if the other neglects the business, to dissolve the partner-ship by notice and
purchase his share at a valuation
(d) all the above.
112. The principles governing the relations of partners to third parties, are certained in
(a) Chapter 4 of the Indian Partnership Act (b) Chapter 5 of the Indian Partnership Act (c) Chapter 3 of the Indian
Partnership Act (d) Chapter 6 of the Indian Partnership Act.
113. In the Indian Partnership Act, 1932, a partner has been described as an agent of the fim for the purposes of the
business of the firm, under (a) section 4
(b) section 5
(c) section 18 (d) section 19.
Act, 1932, partners are the agents
(a) of the firm for business purposes
(b) of the co-partners in individual or personl capacity
(C) of the firm for purposes outside the
business
(d) of all (a), (b) and (c).
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115. In case of immovable property of fim, the power to transfer must be given
ia) impliedly to the transferring partner
b) expressly to the transferring partner (c) both (a) and (b) are correct
(d) none of above are correct.
116. The scope of implied authority of a partner
under section 19 of the Indian Partnership Act is linked with
ia) the kind or nature of the business
i) the usual manner of carrying on the
business
(d only (b) and not (a).
17. Under section 19 a partner has an implied authority to
(a) compromise any claim or a portion of a claim by the firm
(b) relinquish any claim or a portion of a claim by the firm
116. The implied authority of a partner, under section 19 of the Act đoes not extend to
(a) withdrawal of a suit or proceedings filed on behalf of the firm
{b) submit a dispute relating to the business ot
the firm to arbitration
{c) both (a) and (b)
(d} oniy (a) and not (b).
19.A partner has no implied authority
ia) to ernter into a partnership with other persons in another business
D) to borrow money in case of a commercial firm
120. Under section 19(1) of the Partnership Act,
70, the acts of a partner which are done to CATy on, in usual way, business of the kind Carried on by the firm
la) binds the firm
binds the managing partner
() binds the sleeping partner (d) none of above.
124. .The propositions are
1 Where a partner of a professional business partnership borrows money in the usual and Tegular cause of business
stating that the money is to used for partnership business but misappropri-ates it, the other partners
Shall not be liable.
Page 20
II. Where money has been borrowed by a partner without authority, but has been applied to the legitimate business
needs of the firm, the firm is liable.
I. Where the act is within the scope of the implied authority of a partner, but it has been done by him, to the
knowledge of the third party, not for the firm but for his own purposes, the firm is liable.
Which of the following is true as to the aforesaid propositions
(a) I is correct, II and III are incorrect
(b) I& II are correct, IIT is incorrect
(c) I, Il and III all are correct
(d) II and III are correct and I is irncorrect.

122. In case of a mercantile firm, a partner has an implied authority to borrow, that implied authority to borrow
(a) includes the authority to acknowledge liability of the firm
(b) includes the authority to admit any liability in a suit or proceeding against the firm
123. Which of the following acts are not within the implied authɔrity of a partner
(a) to defend an action brought against the firm and to engage a lawyer for the purpose
(b) to appoint servants for the purposes of business
(c) to buy or hire on credit the goods that are used in the firm's business
(d) to submit to an injunction brought against the firm.
124. Section 1942) of the Indian Partnership Act, 1932 provides for
(a) statutory restrictions on implied authority
the partners
(b) contractual restrictiun on the partner's implied authority
(d) neither (a) or (b).
125. Statutory restrictions as contained in section 19(2) of the Indian Partnership Act, 1932 are (a) binding on all the
persorns dealing with the firm, without knowledge of the restrictions
(b) binding on all the person dealing with the firm, if they have knowiedge of the restrictions
Page 21
(c) not binding on all the persons dealing with the firm, if they do not have knowledge of the restrictions
(d) both (a) and (c) are correct.
126. Section 19(2) of the Indian Partnership Act, 1932 has
(a) contract between the parties as an exception to the statutory restrictions on the partner's implied authority
(b) custom or usage of the trade as an exception to the statutory restrictions on the partner's implied authority
(d) no exception to the statutory restriction on the partner's implied authority.
127. Under the implied authority within the meaning of section 19(1) of the Indian Partnership Act, a partner can
(a) acquire immoveable property on behalf of the firm

(b) transfer immoveable property belonging to the firm
128. A partner doing an act on behalf of the firm which he is not authorized to do, it open to the other partners to
(a) ratify or disclaim whole transaction
(b) ratify a part of the transaction and repudiate the remnainder
129. An act done by a partner on behalf of the firm
beyond the implied authority
(a) can be ratified expressly
(b) can be ratified impliedly by conduct
(d) can not be ratified.
130. Clause (b) of section 19(2) of the Indian
Partnership Act, 1932 owes its origin to a declaration made in
(a) Stead v. Salt
(b) Alliance Bank Ltd. v. Keansley
(c) Ram Bharose v. Kallu Mal
(d) Mohamnad Akbar v. Dwaraka Nath. 131. An
unauthorized compromise
or
relinquishment of any claim by a partner can
be questioned by
(a) the other partner(s)
(b) a third party

Page 22
132. Acknowledgment of a liability of the firmby
partner amounts to
(a) compromising a claim
(b) relinquishment of a claim
ic) admission of habihty n a suit proceedings against the firm (d) neither (a) nor (b) nor (c).
133. Section 20 of the Indian Partnership Ac
provides for (a) statutory
restrictions on
the impied
authority of the partner
(b) contractual restrictions on the partrers
implied authority
134. Contractual restrictions on the partners implied authority as provided in section 28 the Indian Partnership Act,
1932 are
(a) binding on all the persons dealing with te
firm, without knowledge of the restricticns (b) binding on all the persons dealing with the firm only if they have
knowledge of the restrictions
(c) not binding on the persons dealing w the firm at all
135. Section 20 of the Indian Partnership Act 19* provides for
(a) extension of partner's implied authority agreement between the partners
(b) imposition of restrictions on the partner š implied authority by agreement betwe the parties
(c) extension and restrictions on the partne implied authority by agreement betwee the partrners
136. When an outsider, dealing with a Parui does not know or does not believe that he
contracting with a partner, but an individual

only
(a) the firm incurs liability if the benefits ot te contract has gone to the firm
(b) the fim incurs no liability even if the benefits of the contract has gone to the fim (c) the firm incurs liability even if
the benefiS of the contract has not tgone to the firm
deals with
(a) a partner's position with regard to other
partners for acts done in an emergeny
Page 23
(b) a partner's position with regard to third parties for acts done in an emergency
(c) a firm's position with regard to third parties for acts done by a partner in an emergency
(d) both (b) and (c).
purports to
(a) externd the authority of a partner in
emergency
(b) restrict the authority of a partner in
emergerncy
(c) extend and restrict both, the authority of a partner in emergency
lays down
(a) a rule of procedure
(b) a rule of evidence
(c) a rule of substantive law
(d) all the above.
140. The mode of acting on behalf of the firm as

prescribed by section 22 of the Indian Partnership Act, 1932 is applicable to
(a) partners of the firm
(b) agents of the firm
(c) marnager of the firm
(d) all the above.
(a) authority of a partner in emergency
(b) mode of exercising authority to bind the firm
(c) extension and restriction on the partner's implied authority
(d) effect of admissions by a partner.
12. Section 22 of the Indian Partnership Act, 1932 İs a provision which shows
14) how a partner can bind the firm and the
rest of the partnerS of the firm, once his act is within the four corners of his implied authority
(b) how a partner can bind the firm and the rest of the partners of the firm, when his act is not within his implied
authority
(c) how the partners cạn
ratify the
unauthorized act of a partrner (d) both (a) and (b).
143, Under section 22 of the Indian Partnership
Act, 1932 in order to bind a firm, the act by the
Partner must be done
(a) in his own name
Page 24
(b) in the name of the managing partner (c) in the name of the firm
144. Section 22 of the Indian Partnership Act, 1932 requires that the partner contracting for the firm must
(a) expressly inform the other party that he intends to act for the firm
(b) impliedly inform the other party that he intends to act for the firm

145. Where a firm is named after the name of a partner, whether the partner intended to act for himself or for the
firm, is
(a) a question of fact
(b) a question of law
(c) a mixed question of fact and law (d) either (b) or (c).
146. Where the name of the firm and that of an individual partner of the firm is identical, the presumption is
(a) in favour of the liability of the individual partner
(b) in favour of the liability of the firm
(c) in favour of the liability of the individual partner whose name is identical with that of the firm
147. Effect of admissions by a partner, has been
dealt with under
(a) section 23 of the Act
(c) section 21 of the Act (d) section 24 of the Act.
148. Section 23 of the Indian Partnership Act, 1932 provides that an admission made by a partner
is an evidence
(a) against the partner
(b) against the firm
(c) against the managing partner
(d) all the above.
149. An admission made by a partner to be an evidence against the fim, under section 23 of the Indian Partnership
Act
(a) must be made in the ordinary course of business
(b) must be made in an emergency only

Page 25
150. An admission made by a partner to be an evidence against the firm, under section 23 of the Indian Partnership
Act, 1932 should
(a) occur in connection with the affair of the firm
(b) be made in the ordinary course of business (c) occur in connection with the affairs of the firm and be made in the
ordinary course of business of the firm
(d) occur in connection with the affairs of the firm or be made in the ordinary course of business of the firm.
151. The implied authority of a partner, by virtue of section 23 of the Indian Partnership Act, 1932, extends to making
admissions
(a) in a litigation
(b) in the ordinary course of business
(c) in a litigation and in the ordinary course of business
(d) only in a litigation and not in the ordinary Course of business.
Section 23 of the Indian Partnership Act, 1932
is an exception to (a) section 19(2)(a)
(b) section 19(2)(c)
(c) section 19(2)(e)
(d) neither (a) nor (b) or (c).
153. Admission made by a partner, in connection with the affairs of the firm and in the ordinary course of business of
the firm, by virtue ,of section 23 of the Indian Partnership Act, 1932,
are
(a) relevant and create estoppel
(b) relevant and conclusive
(c) relevant, create estoppel and are conclusive (d) neither (a) nor (c).
154. Notice to a partner is a notice to the firm' has
been provided under
155. For the application of the rule 'notice to a partner is a notice to the firm' the notice must be to
(a) an active partner (b) a dormant partner

(c) (a) and (b) both
156. The term 'notice' under section 24 of the Indian Partnership Act, 1932 has a reference to (a) actual notice
Page 26
(b) constructive notice (c) deerned notice (d) all the above.
157. Section 24 of the Indian Partnership Act, 1932,
in its operation applies to (a) partners only
(b) agents of the firm
(c) marnagers of the firm (d) all the above.
158. Jf two firms have a common partner, notice which is imputable to one of them ie imputable to the other
provided
(a) it relates to the affairs of a client of either firm
(b) if relates to the custorner of either firm (c) it relates to the business of that other firm (d) either (a) or (b) or (c).
159. The notice to a partner as contemplated by section 24 of the Indian Partnership Act, 1932 should relate to
(a) the affairs of a partner
(b) the affairs of the firm
(c) the affairs of the cliernt of the firm
160. Section 24 of the Indian Partnership Act, 1932, provides for
(a) effect of admnission by a partner on the fim (b) effect of representations by a partner on the firm
(c) effect of notice to a partner on the firm (d) both (a) and (c).
161. Notice to a partner, under section 24 of the Indian Partnership Act, 1932 does not operate as 'notice to the firm'
in case
(a) of a fraud on the firm committed by the partner having notice
(b) of a fraud on the firm committed by others with the consent of the partner having notice
provides for
(a) liability of the firm for the acts of a partner (b) liability of a partner for the acts of the firm (c) liability of the firm
for the wrongful acts ot a partner
(d) rights of a partner.
is declaratory of
(a) the general principle of the liability of e partners to the third parties
Page 27
AGGARWAL LAW HOUSE
391
The Indian Partnersip Act, 1932
section 25 of the Indian Partnership Act, 1932 is equafed with
b) the general principles f the liability of the Énter se partners cthe general priniples of rights and iabilities of the
partrers to the thírd parties (G) the general principles of the rights and iabilities of partners inte s.
(a) joint tort-fezsor
b) joint prornásos
(c) independert tort-fezsors (đ) all the above
16 The liability of the partners for the acts of the fi, under section 25 of the ndizn Partnership Act, 1932 is
(a) iability of the firm for the wongful acts of a partret
(b) liability of a partrer for the acts of the firrn (c) iability of fin for misapplication by parteS
b) several
c) joint or several
() joint and seeral
(d) iability of a partrer for the vrongful acts and misapplications.
16 Under section 25 of the Indian Partnership Ac 1932 the lizbility of the partners is joint nd several for the acts of
the fim
171. For holding the firm liable for the wIOngful
2cts of 2 partner, under section 26 of the Indizn Partnership Act, 1932, the act by the partner Must be done
(z whih are in the nature of wIongs/tort

6 wtich are in brezch of a contract
(c) irespectie of whether the acts of the firm 2re n the rature of wrongs or in brezch of
(a) in the ordinary course of business of the fm
(b) with fhe authority of his copartners (c) either (2) or (b)
(a) ry b) and not (2).
166 The liability, under section 25 of the Indian Pzrtnership At, 1932, is fastened on the partner, for the 2ts of the
firm, done l2) beiore the paree joined the partnership, if the liability is qualified while he was a
(đ) only b) and rot (a).
172 Under section 26 of the Indian Partnership A, 1932, the liability of the fim for the Wrongful 2ct of a partner,
2rises, if the 2ct is a (2) tortious act but not riminal act
b) riminal act but not tortious act
b) we he is a parer
(c) tortious and criminal act
lc) after the retirernent of the partne d all the 2bove
(d) tortious or criminal act
173. Liability of the firm for misapplication by partners has been dealt with under
57. The principle of joint and several liability ignifies that fot every 2ct of the firm, 2 partner an be sed
(2) irdividually
(bi jointly with other coparters
In the English lzw, the liability of each partner 174. Líability of the firm undđer section 27 of the
lc) eitter la) or (b)
Indian Partnership Act, 1932 arises where
(a) the property is received by a partner acting withún his apparent authority and he misepplies it
4 yirt in respet of the firm's contracts and pt several in respect of the firm's
(b) the property is received by a partner without his apparent authority and he misapplies it
o jpint b several in respect of the fim's Contracts and joint in respect of the firmn's
(c) the property is received by a partner apparent whether within or without his authority and he misapplies it
joint in respect of both Citracts and the firm's wrongs at e severa! in respect of both - the farm's cntracts and the
firm's wrongs.
the firm's
(d) reither (a) nor (b).
149. The position of the partners, with respect to
ar liability for the acts of the firm, under
Page 28
AGGARWAL LAW HOUSE
391
The Indian Partnerslip Act, 1932
section 25 of the Indian Partnership Act, 1932
(b) the general principles of the liability of the partners inter se
is equated with
(a) joint tort-fcasor
(c) the general principles of rights and liabilities of the partners to the third parties (d) the general principles of the
rights and liabilities of partners inter se.
(b) joint promisors
(c) independent tort-feasors (d) all the above.
164. The liability of the partners for the acts of the firm, under section 25 of the Indian Partnership Act, 1932 is
(a) liability of the firm for the wrongful acts of a partner
(b) liability of a partner for the acts of the firm (c) liability of firm for misapplication by partners
(a) joint
(b) several
(c) joint or several
(d) liability of a partner for the wrongful acts and misapplications.
(d) joint and several.
165. Under section 25 of the Indian Partnership Act, 1932, the liability of the partners is joint and several for the acts
of the firm
171. For holding the firm liable for the wrongful
acts of a partner, under section 26 of the Indian Partnership Act, 1932, the act by the partner must be done
(a) which are in the nature of wrongs/tort (b) which are in breach of a contract
etten that otet
(c) irespective of whether the acts of the firm are in the nature of wrongs or in breach of a contract
(a) in the ordinary course of business of the firm
onteml erstip A
(b) with the authority of his co-partners
166. The liability, under section 25 of the Indian Partnership Act, 1932, is fastened on the partner, for the acts of the
firm, done
172. Under section 26 of the Indian Partnership Act, 1932, the liability of the firm for the wrongful act of a partner,
arises, if the act isa (a) tortious act but not criminal act
the partnership, if
he firt
(a) before the partner joined while he was a
qualified
the liability
nerskip Ad
(b) criminal act but not tortious act
partner
while he is a partner
(c) tortious and criminal act
artrer an Fapurteat eran thein sertian 24ed does not
(b)
(c) after the retirement of the partner
(d) tortious or criminal act.

173. Liability of the firm for misapplication by partners has been dealt with under
(d) all the above.
167. The principle of joint and several liability signifies that for every act of the firm, a partner can be sued
(a) individually
(b) jointly with other co-partners
174. Liability of the firm under section 27 of the Indian Partnership Act, 1932 arises where
lb3. In the English law, the liability of each partner is
(a) the property is received by a partner acting within his apparent authority and he misapplies it
unitedbrate
(a) joint in respect of the firm's contracts and joint & several in respect of the firm's wrongs
(b) the property is received by a partner without his apparent authority and he misapplies it
(D) joint & several in respect of the firm's contracts and joint in respect of the firm's wrongs
(c) the property is received by a partner whether within or without his apparent authority and he misapplies it
the firm's
(C) joint in respect of both contracts and the firm's wrongs (a) joint & several in respect of both - the tirm's contracts
and the firm's wrongs.
169. The position of the partners, with respect to
eir liability for the acts of the firm, under
Page 29
175. A firm is liable for the misapplication by a partner, under section 27 of the Indian Partnership Act, 1932, where
(a) the property is received by the firm in the course of íts business and the property is misapplied by any partner
(b) the property is received by a partner withín or without his apparent authoríty
176. The scope of the apparent authority of a
partner is
(a) the same as implied authority
(b) wider than the implied authority
(c) narrower than the implied authority (d) either (a) or (c).
177. In which of the following case, the firm
cannot be held liable
(a) where a firm received the sale proceeds of
a customer's stock sold by a partner without the customer's consent
(b) where a partner of a firm of solicitors received money from a client for investment on a specific security and
misappropríated it
(c) where a partner of a firm of solicitors received money from a client for investrnernt generally at hís discretion and
misappropríates it
(d) all the above.
178. A fim can be held liable for the wrongful act of a partner where the act has been ratified by the partners,
provided
(a) the act could be legally done with the authority of all the partners
(b) the partners ratify the act with full knowledge of the facts
(d) both (a) and (b).
179. The principle of liability by holding out is contained in
(a) section 28 of the Indian Partnership Act, 1932
(b) section 30 of the Indian Partnership Act, 1932
(c) section 29 of the indian Partnership Act, 1932
(d) section 27 of the Indian Partnership Act, 1932.
180. A person is liable as a partner of a firm, on the principle of holding out, where he
(a) declares himself to be a partner of the firm

Page 30
(b) represents himself to be a partner of the
firm
(c) knowingly permits others to represent him
as a partner in the firm (d) either (a) or (b) or (c).
181. The liability by holding out is an application
of
(a) principle of undisclosed principal
(b) principle of estoppel
(c) principle of equity
(d) principle of agency.
182, The effect of the doctrine of holding ou4 :
that
(a) the persons may be partners towards #h. world without being partners betwen themselves
(b) the persons may be partners towards the world On being partners between themselves
(c) the persons may be partners towards the world without having done anything (d) both (a) and (b).
183. An illustration of representation by conduct within the meaning of section 28 of the Indian Partnership Act,
1932, is
(a) Bevan v. National Bank Ltd.
(b) Kirkwood v. Cheethan & Smith
(c) Porter v. Incell
(d) Tower Cabinet Co. v. Ingram.
184. The question whether or not there has been the representation of the type as is contemplated by
the doctrine of holding out is a
(a) question of fact
(b) question of law
(c) mixed question of fact & law
(d) only (a) and not (b) or (c).
185. Under the doctrine of holding out, liability

can be incurred for
(a) a tort
(b) a crime
(c) a wrongful conduct
186. Liability on holding out is incurred where
(a)
a person has the knowledge of representation
(b) a person has acted on the faith of that
representation
187, The effect of holding out is that
(a) the apparent partner becomes the real
partner
Page 31
h) the liability of the firm arises to those dealing with the firm on that basis
(c) the apparent partner gets certain rights against the firm
(d) all the above.
188. Which of the following is not an effect of holding out
(a) the apparent partner gets rights against the members of the firm
(b) an agency is established between the apparent partner and the real partners (c) the apparent partner incurs no
liability to the firm to whom any damage is caused by representing as partner
(d) all the above.
189. Where in a partnership firm, one of the partner retires and another joins, and no public notice of retirement
having been given, for the price of goods supplied after the joining of the new partner, the supplier of goods can sue
(a) the new partner
(b) the old partner

190. Under section 28 of the Indian Partnership Act, 1932, which of the following are not liable
(a) estate of a deceased partrner
(b) estate of the insolvent partner
191. The liability by holding out can be incured
by
(a) a minor
(b) a major
192, The liability under section 28 of the Indian
Partnership Act, 1932, depends on
(a) estoppel
(b) contract between apparernt partners (c) either (a) or (b)
O Kughts of transferee of a partner's interest
have been dealt with under
(a) section 30 of the Act (b) section 3] of the Act
(c) section 28 of the Act (a) section 29 of the Act.
Act, 1932, a partner has
Page 32
(a) a right to transter his nterest in the partnership firm only with t conent f all the ofher partners
(b) a right to transfer his interest in the partnership if permitted by the majority of the partrner
(e) a right to transfer his interest in fhe firm without any rider
(d) no right to transfer his interest in the firm,

195. A partner can transfer his interest in the firn, under sectíon 29 of the Indian Partnership Act, 1932
(a) absolutely
(b) by mortgage
(c) by the creation of charge
(d) cither (a) or (b) or (c).
196. A transferee of the partners interest in the
firm
(a) becomes a partner in the firm
(b) doe not becorne a partner but gets a right to require accounts or to inspect the boxks of the firm
(c) does not beCorne a partner but gets a ríght to receive the share of profits of the transferring partner
(d) both (b) & (c).
197. Section 29 of the Indian Partnership Act, 1932, provides for certain rights of the transferee, of the partner's
interest, in the firm
(a) while the firm is a going concern
(b) when the firm is dissolved
198. Which of the following rights is not available to the transferee of a partners' interest in the firm
(a) to interfere in the conduct of business
(b) to receive the profits which fail to the share of the transferring partner
199. Which of the following can be questioned by a transferee of a partner's interest in the firm
(a) the accounts of profits as is declared by the other partners
(b) the arrangement made by the partners as between themselves relating to their rights or profits
(c) the share of profits of the transferring partner being given to him
(d) neither la) nor (b) nor (c).
Page 33
200. What is due to the transferee of a partner's interest in the firm, under the interest which he has acquired will be
ascertained as it is (a) at the time of the transfer
(b) at the time when the transferor ceases to be
a partner
(c) at the time agreed upon by the partners (d) either (b) or (c).
the
201. The share/interest of a partner in partnership is a
(a) movable property
(b) immovable property
(c) a right to sue
(d) all the above.
202. When a transferring partner ceases to be a partner in the firm or where the firm comes, to be dissolved, the
transferee of the partner's interest in the firm is entitled to
(a) receive the share of the assets to which the selling partner was entitled
(b) an account from the date of dissolution (c) both (a) and (b)
203. If several persons are partners in a firm and one of them agrees to share the profits devised by him with a
stranger, the agreement, as per the law LT. laid down in Murlidhar v. Commissioner, AIR 1967 SC 383,
(a) makes the stranger a partner in the original
firm
(b) does not make the stranger a partner in the original firm
(c) makes the stranger a partner in the original firm for limited purposes
(d) makes the stranger a partner in the original firm in case of losses.
204. Transfer of his share in the firm by a firm
(a) by itself operates as a dissolution of the firm
(b) gives the other partner(s) a right to sue for dissolution on that ground
(c) neither (a) nor (b)
205. When a transferee of a partner's interest in the firm, pays off a partnership debt, without the consent of the
other partners but for the benefit of the partnership firm, he is
(a) entitled to the contribution for the sane from the partners
(b) entitled to be indemnified by the firm under section 13 of the Act
Page 34
206. A creditor of a partnership firm, Car demand the dues of the firm, from
(a) the firm or all or any of the partners
(b) the transferee of a partner's interest in he firm
207. The principles contained in section 29 of h Indian Partnership Act, 1932, can be applied to (a) voluntary transfer
of his interest in the firm by a partner
(b) involuntary transfer of his interest in the firm by a partner
208. A partnership deed that attempts to make a
minor a full-fledged partner
(a) valid
(b) invalid to the extent of making a minor a full-fledged partner
(c) voidable
(d) invalid in its entirety.
Act, 1932, a minor
(a) can be admitted to the partnership as a full- fledged partner
(b) cannot be admited to the partnership at all for want of capacity to contract
(c) can be admitted to the partnership for the benefits only
210. Under section 30 of the Indian Partnership Act, 1932, a minor can be admitted to the benefits of the partnership
(a) with the consent of all the partners

(b) with the majority decision of the partners (C) by any of the partners without the consent of other partners
(d) by the managing partner without the consent of other partners.
211. Section 30 of the Indian Partnership Act, 1932, applies
(a) where a partnership is constituted of two
persons and one of them dies, and the other admits a minor to the benefits of the business
(b) where a minor is admitted to the benefits of subsisting partnership
() where a minor is admitted to the benefits of a future partnership (d) all the above.
Page 35
212. Benefits of partnership' within the meaning t section 30 of the Indian Partnership Act, 1932, means
(a) profit sharing
) assets-sharing in the event of dissolution of the firmn
13. A minor admitted to the benefits of the firm under section 30 of the Act has a right to
(a) share profits and the property of the firm
(b) have access to, inspect and copy accounts of the firm
14. Section 30(2) of the Indian Partnership Act, 1932, does not permits a ninor admitted to the benefits of the firm to
have
(a) access to, inspect and copy any of the accounts of the firm
(b) access to books of the firm which do not contain matters of accounts
215. The liability of a minor admitted to the benefits of the partnership, for the acts of the fim, is
(a) personal
(b) his share in the firm
(C) personal and his share in the firm

(d) his share in the firm only and not personal. lb. So long as a minor remains admitted to the benefits of the firm
under section 30(4) of the Act, the minor is
(a) Competent to sue the firm for account and payment of his share of profits of the firm competent to sue the firm
for account and payment of his share of property of the firm
competent to sue the firm for account and Payment of his share of both profits and Property of the firm
ncompetent to sue the firm for account or Payment of his share either of profits or Property of the firm.
217.Once a minor, who has been admitted for
benefits of the partnership, severs connection with that firm the minor has no
his
right to sue
(a) for accounts and his share 0) for dissolution of the firm (c) both (a) and (b)
Page 36
218. A mninor who has been admitted to the benefits of the firm, on an application to have the partners of the firm
adjudicated as insolvent
(a) can be adjudicated as insoivernt and his share seized by the receiver
(b) can be adjudicated as insolvent but hís share canot be seized by the receiver (c) carnot be adiudicated as
insolvent but his share can be seized by the receiver
(đ) carưnot be adiudicated as insolvent nor his share can be seized by the receiver.
219. Under sub-section (5) of section 30 of the Indian Partnership Act, 1932, a minor, who has been admitted to the
benefits of the firm immediately on attainíng majority (a) automatically becomes a partrer in the firm (b) becomes a
partner with the consent of all the other partnerS
(c) becomes a partner omly if he of his own chooses to become a partner
220. A minor, who has been admítted to the benefits of the partnership, under section 30(5) of the Act on attaining
majority has to exercise an option, to stay or to leave the firm, within (a) three months of attaining majority (b) six
months of attaining majority (c) one year of attaining majority
(d) a reasonable time of attaining majority. 221. Where a minor has been admitted to the benefits of the partnership
but he does not know that he has been so admitted, the option to stay in the partnership or to move out, on
attaining majority under section 30(5) of the Act has to be exercised within
(a) síx months of attaining majority
(b) six months of acquiring the nowledge of being so admitted into the firm
(c) six months of attaining majority or six months of acquiring the knowledge of being so admitted into the firm,
whichever is earlier
(d) six months of attaining majority or six months of acquiring the knowledge of being so admitted into the firm,
whichever is later.
222. The burden of proof that the minor who was admitted to the benefits of partnership, was not so aware, for the
purposes of
Page 37
exercising option under section 30(9) of the Act, is on
(a) the minor exercising the option on attaining the majority or the guardian of the minor
(b) the partners of the firm
(c) the creditor seeking partnerhip dues (d) either (a) or (t)
recovery of
223, The option to stay er to leave the partnership, by a minor on attaining majority under section 30(5} of the Act.
can he exercised
(a) by giving a notice to all the adult partners
(b) by giving a pubic notice of it
bv giving notie to the guardian (d) either (a) or (b) or (c).
(c)
224. 1 a minor, admitted to the benefits of the fim, on attaining majority, fails to give public notice of his intention to
become or not to become a partner, within the prescribed six months, by virtue of proviso to section 30(5) of the Ac,
he
(a) automatically becomes a partner in the firm atter the expiry of said six months
b) automatically ceases to be a partner in the firm after the expiry of said six months
{c) becomes a partner in the firm after the expiry of the said six months only if all the partners consent to it
225. On election to become a partner, on attaining majority, by a minor who was admitted to the benefits of the firm,
under section 30(7) of the Act, his rights and liabilities in the firm
(a) shall reiate back to the date of his attaining majority irrespective of the date on which he exercised the option
(b) shal} relate back to the date when he was admutted to the benefits of the firm
(c) shal commence trom the date of his exercising the option by givung the public
notice
(d) shall commence fron the date as decided by al the partners

226. On becoming a partner, on attaining majority by a minar who was admitted to the benefits of the firm, his
personal liability, under section 30(7) of the Act, for the acts of the firm, commences iron
(a) the date of majority
(b) the date ot exercising the option
Page 38
(c) the date of admission to the benefits of he
firm
(d) the date as decided by the partrer
themselves.
227. When a minor who was admitted t benefits of the firm, on attaining majomty becomes a partner in the firm, his
share in
property and the firm shall
(a) remain the sarre as it was during h minority
(b) be equal with all other partners
(c) be adjusted in proportion of the capita contribution
(d) be kept marginally lower than the exişting partners.
228. The effects of the minor dropping out of the firm on attaining majority have been provided under
(a) section 30(6) of the Act
(b) section 30(7) of the Act
(c) section 30(8) of the Act
{d) section 30(9) of the Act.
229. Chapter 5 of the Indian Partnership Act, 1932
deals with
(a) dissolution of the firm
(b) incoming and outgoing partners
(c) registration of firms
(d) supplemental.
230. Introduction of a partner into a firm is
regulated by
231. A new person can be introduced into a firn as
a partner under section 31 of the Act by (a) unanimous consent of all the partners (b) majority consernt amongst the
partners (c) with the consent of the managing partner (d) either (a) or (b).
232. A contract between the partners
{a) can provide for intrOduction of a new partner without the consent of al! the existing partners
(b) can provide kor introduction of
partner by nomination by one ot any of t partners
(e) can provide either (a) or (b) or both {d) can either provide for (a) nor for (b) 233. In Commissioner of ncome Tax
VA Govindram Sugar Mils, AIR 1966 SC 24, it h been held
Page 39
iat a clause in the partnership agreement enabling a partner to nominate his suocessor does not appiy to a
partnership of two partners which is dissolved by the death of one of them
) a clause in the partnership agreement enabling a partner to nominate his successor is valid in case of a partnership
of two persons which may be dissolved by the death of one of them
ic none can be introduced in the partnership by nomination
Id) none can be introduced in the partnership without the consent of all the partners. 34. The liability of a person
introduced in the partnership, under section 31(2) of the Act (a) is for pre-existing debts of the firm
b commences from the date of his admission (c depends on the agreement between the parters
(d) is for the pre-existing debts as well as the one contracted after his admission.
235. The rule under section 31(2) of the Indian
Partnership Act, 1932, recognises
(a) section 30 as its exception
b) section 31(1) as its exception
(c) both section 30 and section 31(1) as its
exceptions
ia) no eXception.
36 Section 32 of the Indian Partnership Act, 1932,

deais with
(a) liability of new partner
(b) rights of new partner
(c) retirement of a partner
id) insolvency of a partner.
. Ihe jural relationship between the partners
inter se does not come to an end on
(a) retirement of a partner
b) dissoiution of the firm
ic) both (a) and (b)
id) neither (a) or (b).
.Secion 32 of the Indian Partnership Act, 1932,
Prescribes
a) one mode of retirement of a partner
three modes of retiremnent of a partner C) ive modes of retirement of a partner J two modes of retirement of a
partner.
partner can retire from a partnership by
a consent of all the partners
b) where there is an agreement about
tetrement, in accordance with the terins of
Page 40
that agreement whether the other partners are willing or not
(c) giving a notice of his intention to retire (d) either (a) or (b) or (c).
240. A partner can retire by notice of his intention to retire, where
(a) the partnership is at will
b) the partnership is for a specified period
(c) where a contract has been made between the partners for its determination
(d) all the above.

241. Notice of intention to retire by a partner under section 32(1Hc) of the Indian Partnership Act, 1932, should be
served on
(a) any one of the other partner as notice to a partner is a notice to the firm
b) the managing partner as notice to a managing partner is a notice to the firm
(c) all the partners
242. Notice of intention to retire by a partner, under section 32(1c) of the Indian Partnership Act, 1932 to be valid,
must be (a) in writing and signed by the partner
(b) in writing but need not be signed by the partner
(c) orally communicated to all the partners (d) either (a) or (b) or (c).
243. A partner in a fimn can retire by consent, of the Indian
under section 32(1Xa) Partnership Act, of
(a) all the partners (b) majority of the partners
(c) the managing partner (d) either (a) or (b) or (c).
244. Retirement of a partner means
(a) retirement from subsisting liabilities
(b) retirement from a firm
245. Where a retiring pzrtner has agreed with his co-partrners, under which he is released from liability for
outstanding debts, his liability to the creditors
(a) comes to an end
(b) stil remains
(c) partiy comes to an end and partiy remains (d) either (b) or (c).
246. When creditors continues to deal with the re- constituted firm after he is informed of the retirement of a
partner and the agreement of
Page 41
release, the liability of the retiring partner towards the creditors
(a) conmes to an end
(b) still remains

(c) partly comes to an end and partly remains (d) either (a) or (c).
247. Sub-section (3) of section 32 of the Indian Partnership Act, 1932, requires that the retirement of a partner
should be nade known through
(a) notice to third parties specifically
(b) public notice
(c) notice to the partners
248. "Public Notice' of retirement of a partner from the firm, is required to be given by
(a) the retired partner
(b) the firm
(c) both the retired partner and the firm
(d) either the retired partner or the firm.
249. The default in giving public notice of the
retirement of a partner, results in
(a) holding out of the retired partner
(b) estoppel against the firm
0. Where a partner retires from a partnership, as long as public notice is not given
(a) the firm will be answerable for the acts of the retired partners
(b) the retired partner will be answerable for the acts of the firm
(c) only (b) and not (a)
251. No public notice is required to be given in the
case of
(a) a deceased partner
(b) an insolvent partner
(c) a dormant partner (d) all the above.
252. A retiring partner having purchased his release from the remaining partners
(a) is liable for the tort or some other wrong
committed at the time when he was a member only if the action is instituted before his retirement
(b) is liable for the tort or some other wrong committed at the time when he was a partner, if the action is instituted
and decided before his retirement
(c) is liable for the tort or some other wrong committed at the time when he was a
Page 42
partner, irrespective of whether the action (d) is not liable for the tort or some other is instituted before or after his
retirement wrong committed at the time when he was a member having purchased his release
from the remaining partners.
253. Expulsion of partner has been provided unde: (a) section 33 of the Act
(c) section 35 of the Act
(d) section 34 of the Act.
254. A partner can be expelled in exercise of
powers conferred by
(a) the Partnership Act, 1932
(b) the contract between the partners
255. Where a contract between the partners
provides for expulsion of a partner, the power to expel can be exercised by the consent of
(a) majority of partners
(b) the managing partner
256. The status of a partner who has been expelled
is that of
(a) an existing dormant partner
(b) an insolvent partner

(c) a retired partner
257. The power to expel a partner conferred under the contract between the partners must be exercised
(a) bona fide, in good faith and for the benefit of the firm
(b) bona fide, in good faith and for the benefit of individual partners
(d) at the instance of one partner.
258. Expulsion of a partner, without affording him
an opportunity of being heard is
(a) valid
(b) voidable at the instance of expelled partner (c) voidable at the instance of any co-partner (d) void.
259. The proper remedy for a partner who has been
expelled is to
(a) claim re-instatement in his right
(b) claim and sue for damages
Page 43
260. On expulsion from a partnership, the partner
so expelled
(a) ceases to be a partner
(b) continues to be a partner and his status becomes as of a retired partner
lc) dissolves the firm automatically
(d) continues to be a partner and his status becomes as of a sleeping partner.
261. Section 34 of the Indian Partnership Act, 1932, deals with
(b) expulsion of a partner
(c) insolvency of a partner (d) death of a partner.

262. Where a partner in a firm is adjudicated an insolvent, the said partner
(a) ceases to be a partner in the firm
(b) continues to be a partner and his status is that of a retired partner
(c) continues to be a partner and his status is that of a dormant partner
263. Where a partner in a firm is adjudicated an insolvent, he ceases to be a partner
(a) on the date on which the petition for
insolvency was filed
(b) on the date on which the order of adjudication is made
() on the date fixed by the court
L64. A receiver of the insolvent partner's property
in the partnership
(4) can claim exclusive possession of the assets
of the partnership
(b) becomes a joint tenant
(C) becomes a tenant in common
Under section 34 of the Indian Partnership AC, 1932, on adjudication of a partner as Insolvent, the partner-ship firm
(a) stands dissolved automatically
(b) does not dissolve at all
may or may not dissolve depending on the Contract between the partners only (a) and not (b) or (c).
h6. Where on adjudication of a partner an insolvent, the firm is not dissolved remains in
business
(a) the insolvent partner's estate is liable for the acts of the firm after the date of his
insolvency
Page 44
(b) the firm is liable for the acts of the insolvent partner
267. On the death of a partner, by virtue of section 35 of the Indian Partnership Act, 1932, the partnership firm
(a) automatically stands dissolved (b) does not dissolve at all
(c) may or may not dissolve depending on the contract between the partners
268. Where the firm is not dissolved by the death of a partner, under section 35 of the Indian Partnership Act, 1932
(a) the estate of the deceased partner is not liable for any act of the firm done after his death
(b) the estate of the deceased partner is liable for the acts of the firm done after his death (c) the estate of the
deceased partner is liable for acts of the firm which are within the implied authority of the partner
(d) the estate of the deceased partner may or may not be liable for the acts of the firm depending on the contract
between the partners.
269. An express agreement by the creditor to discharge a retired partner and to look only to a continuing partner, for
the partnership debts, is (a) void for want of consideration
(b) voidable
(c) invalid
(d) valid.
270. Rights of an outgoing partner have been provided under
(a) section 36 and section 38
(b) section 36 and section 37
(c) section 36, section 37 and section 38 (d) section 38 only.
271. By virtue of section 36 of the Indian Partnership Act, 1932, an outgoing partner has (a) a right to carry on a
business competing with that of the firm
(b) no right to carry on a business competing with that of the firm
(c) a right to carry on a business competing with that of the firm only with the permission of all the partners even
though under the contract of partnership there is not restriction imposed
Page 45
(d) a right to carry on a business competing
with that of the firm only with the permission of the majority of the partners even though in the contract of
partnership there is no restriction imposed.
272. Under the scheme of section 36 of the Indian Partnership Act, 1932, an outgoing partner, in the absence of any
agreement to the contrary, has
(a) a right to carry on business competing with that of the firm
(b) a right to use the firm name
both (a) and (b)
(c)
273. When the firm is named after the retiring partner, the retiring partner has a right to
(a) set up a precisely similar business under
the same name
(b) set up a precisely similar business but not under the same name
(c) set up a precisely similar business under a new name which suggests a connection with the firm he has left
274. A retiring partner can treat his new business
as
(a) connected with the old firm
(b) an extension or a branch of the old firm
(c) unconnected with the old firm and not an extension or a branch of the old firm
(d) connected with the old firm and an extension or a branch of the old firm.
275. Under section 36 of the Indian Partnership Act, 1932, the position of a retired partner is (a) the same as that of a
seller of goodwill (b) different from that of a seller of goodwill (c) the same as that of a partner who has died (d) the
same as that of a partrner who has been adjudicated as insolvent.
276. Section 36(2) of the Indian Partnership Act, 1932 (a) authorises the partners to alter the statutory scheme
prescribed under section 36(1) of the Act, by agreement
(b) prohibits the partners to alter the statutory scheme prescribed under section 36(1) of the Act by agreement
(c) authorises the partners to alter the statutory scheme prescribed under section 36(1) of the Act, particularly only,
by agreement
Page 46
Hhership het,
277. Section 362) o the

1932, carves out arn exception to
(a) sectíon 25 of the Indiar Catract Act, 11 (b) section 26 of the Indiarn Contract Act, 1 (c) sectíon 27 of the Indian
Contract Act, 129 (d) section 28 of the Indian Contract Act. 1
278. An agreement in restraint of trade between the
partners to be valid must relate to
(a) the period of restraínt and be reasnable
(b) the local límíts of restraint and reasonable
279. Where on the outgoing of a partner, Gfher partners continue in busíness without a final settlement of accounts,
under the scheme of section 37 of the Indian Parternership At 1932 the outgoing partner is entitled to (a) interest on
the unpaid capítal (b) share in the profits
280. The outgoing partner, where the partnership business is continued by other partners without a final settlement
of accounts, under section 37 of the Act, the outgoing partner is entitled to interest on the unpaid capita, at the rate
of
(a) 6 per cent per anum
(b) 9 per cent per arnum
(c) 12 per cent per annum
(d) as decided by the partners.
281. Where the partnership business is carried on by the other partners after the outgoing of 2 partner, without a
final settlement of accounts, under section 37 of the Act, the outgoing partner is entitled to a share of profits (a) in
equal share with other partners (b) proportionate to the share of assets (c) higher than what he was getting when
was a partner
(d) as decided by the partners.
282. Where under a contract between the partne the remaining partners have opted to purchas the share of the
outgoing partner, the outgotn partner, under section 37(2) of the Act has (a) a right to receive the interest on the
urnp capital but his right to share of prou
ceases
(b) a right to receive share of profits Proportion of the assets but his right receive interest ceases
Page 47
(c) a right to receive share of profits or the interest on the unpaid capital
(d) no right to receive share of profits or the interest on the unpaid capital as the same
ceases.
83, Under section 37(2) of the Indian Partnership Act, 1932, on exercise of option to purchase the share of the
outgoing partner under an agreement between the partners resulting in the right of the outgoing partner to receive
the share of profits or interest on the unpaid capital to cease, such right of the outgoing partner
ia) can be revised at the option of the outgoing partner at any time
6) can be revived in case default is made by the opting partners in fulfilling the terms of the agreement
(c) cannot be revised under any circumstances (d) either (a) or (b).
284. The principles contained in section 37 of the Indian Partnership Act, 1932, apply where a partner ceases to be a
partner by
(a) voluntary retirement from the firm (b) death
(c) expulsion
285. The retiring partner, is bound to make the election as to whether he would claim a share of the profits or
interest on the unpaid capital (a) on the date he retires from the partnership
(b) at any time before the share of profits and assets that would fall to him is ascertained
(C) at the time when the share of profits and assets that would fall to his share is ascertained
0b, The principles contained in section 37 of the Indian Partnership Act, 1932, are based on
(a) the law of trust
(b) the law of contract
(c) and is the creation of law of partrnership (d) either (a) or (b) or (c).
O Section 38 of the Indian Partnership Act, 1932 provides for
(a) continuatíon of continuing guarantee by change in the constitution of the firm
0) revocation of the continuing guarantee by Change in the constitution of the firm (c) both (a) and (b)
Page 48
(d) alteration/modification of the continuing guarantee according to the change in the constitution of the firm.
288. The revocation of continuing guarantee on the change of constitution of the firm under section 38 of the Act, is
in respect of
(a) future transactions from the date of change in the constitution of the firm already
(b) transactions the revocation shall relate back to the date of guarantee
made
as
(c) transactions already made as well as future
transactions
(d) neither (a) nor (b) but only (c).
289. The continuing guarantee liable to be revoked under section 38 of the Indian Partnership Act, 1932, on the
change in the constitution of the firm, must be the one
(a) given to a firm
(b) given to a third party in respect of transaction of a firm
290. The principles governing the dissolu-tion of a
firm have been dealt with under
(a) chapter 5 of the Act
(b) chapter 6 of the Act
(c) chapter 4 of the Act
(d) chapter 7 of the Act.
291. Chapter 6 of the Indian Partnership Act, 1932 provides for
(a) incoming and outgoing partners
(b) registration of firm
(c) dissolution of a firm
(d) relation of partners inter se.
292. Dissolution of a firm has been defined under
293. Section 39 of the Indian Partnership Act, 1932, defines dissolution of a firm as
(a) dissolution between some of the partners of a firm

(b) dissolution between majority of the partners of a firm
(c) dissolution between all the partners of the
firm
294. The modes of dissolution of a firm provided under the Indian Partnership Act, 1932 are (a) exhaustive
Page 49
(b) illustrative
(c) inclusive
(d) only (b) and not (a) or (c).
295. On dissolution, the business firm which the
partners have founded
(a) must necessarily abolish (b) may remain and survive
(c) may carry on business (d) both (b) and (c).
provides for
(a) dissolution by court
(b) dissolution by notice
(c) dissolution by agreemnent
(a) compulsory dissolution.
Act, 1932, a firm can be dissolved
(a) with the consent of majority of partners
(b) with the consent of all the partners
(c) with the consernt of the managing partner (d) either (a) or (b) or (c).
298. Where a contract between the partners provides for the mode of dissolution, and the firm is dissolved in
accordance with that subsisting contract, such a dissolution of firm is called
(a) dissolution by agreement under section 40 of the Act
(b) dissolution by notice under section 43 of the Act

(c) compulsory dissolution under section 41 of the Act
(d) dissolution by operation of law under section 42 of the Act.
299. A dissolution of a firm can be inferred from (a) refusal of some partners co-operate and doing anything to keep
the business alive (b) inability to pay its debts and liabilities (c) closure of business
300. Where there is a subsisting contract between the partners as to dissolution,
(a) the firm can be dissolved in accordance with that agreement only with the consent of all the partners
(b) the firm can be dissolved in accordance with that agreement only with the consent of majority of the partners
(c) the firm can be dissolved in accordance with that agreement even if all the partners are not willing to do so at the
moment
Page 50
301. Compulsory đissolution of a firm has bee
provided under
(a sectinn 42 of the Act (b) section 41 of fhe Act
fc section 44 of the Act (d} setio 43 of the Act
302 Under section 41 of the Indian Partnershóp Act, 1932, a fim is liabie to be compuisorily
dissolved on the ground of
(a) isalvency
(b) ilegality of business
(c) both (a) and b)
(d) either (a) or b}.
303. A fin is iable to be compulsorily dissolved under section 41 of the Act on adfudicatiom f (a) al the partners as
insolvents
b) all but one of the partrners 2s insolvents c either (a) or b)
(d) onis (a) and not b).
304. The fim is liable to be compulsorily dissolved under section 41b) of the Indizm Partnership Act, 1932
(a) where the business of the firm is egal from the very beginning
b) where the business of the firm is lawful in the beginning but sub-sequentiy he business becomes unlawful
(c) both (a) and b)

(d) either (a) or b).
305. Where a fim is canying on more than one type of business, under the proviso to section 41b) of the Act, the
firmn escapes compulsory dissolution if
(a) all the businesses emain lawful
b) majority of the businesses remain lawful (c) least business remains lawful
(d) either (a) or (b} or (c).
306. The type of đissolution described under section 42 of the Indian Partnership Act, 1932,
(a) contingent dissołutio
b) compulsory dissolution
(c) dissolution by the court (d) dissolution by notice. 307. Dissolution
the happening of contingencies as mentioned in section 42 0 the Indian Partnership Act, 1932, is prevented by
(a} a epress agreenent to the contrary between the partrers
(b) an impied agreement to the contrary between the partners
Page 51
(c) either (a) or (b) (d) only (a) and not (b).
ang The contingencies stated in section 42 of the Indian Partnership Act, 1932, include
(a) where a partnership has been constituted for a fixed term or to carry out specific adventures, the expiry of that
term or completion of specific adventure
(b) the death of a partner
(c) adjudication ofa partner as insolvent (d) all the above.
a09. The type of dissolution provided under section 43 of the Indian Partnership Act, 1932
is
(a) dissolution by court
(b) dissolution by notice
(c) dissolution by agreement
(d) dissolution by insolvency.
310. The dissolution by notice as described under section 43 of the Indian Partnership Act, 1932, is applicable where
the partnership is (a) at will
(b) for a fixed term

(c) for a specific adventure
(d) all the above.
311. The partnership at will can be dissolved by giving a notice of intention to dissolve the
partnership to
(a) the managing partner
(b) the majority of the partners
OL The notice of intention to dissolve the firm, under section 43 of the Act, must be
(a) in writing
(b) a verbal communication
(a) only (a) and not (b).
In case of dissolution by notice under section %5 of the Act. the dissolution of the firm takes effect from the date
(a) on which the notice is sent
(D) on which the notice is received
mentioned in the notice as the date of dissolution
(a) as decided by the partners.
314. Where the notice of dissolution of the firm does not mention any date as the date of
firm shall be dissolved on the
dissolution, date
the
(a) on which the notice is sent
(b) on which the notice is communicated
Page 52
(c) which is decided by the partners (d) fixed by the court.
315. The Supreme Court in Banarasi Dass v. Kaushi Ram, AIR 1958 SC 1165, has held that (a) filing of plaint in a suit
for dissolution by
one partner and service of summons thereof, amounts to notice of intention to dissolve a partnership at will
(b) filing of a plaint in a suit for dissolution by
one partner and service of summons thereof is does not amount to notice of intention to dissolve, a partnership at
will (c) filing of a plaint in a suit for dissolution by
one partner and service of summons thereof may amount to notice of intention to dissolve a partnership at will
316. Where a firn's dissolution is brought about by a regular deed of dissolution which purports to effect the
dissolution from an anterior date
(a) the deed of dissolution shall effect the dissolution from the date of the deed
(b) the deed of dissolution shall effect the dissolution from the anterior date mentioned in the deed
(c) the deed of dissolution shall be ineffective and a fresh agreement of dissolution has to be entered into
(d) only (c) and not (a) or (b).
317. A notice of dissolution of a firm under section
43 of the Act, once served
(a) cannot be withdrawn at all
(b) can be withdrawn at any time as a matter of right unilaterally
(c) can be withdrawn only with the consent of those upon whom it was served
(d) either (b) or (c.
318. A 'notice' under section 43 of the Act
(a) must be in writing which may be vague (b) must be in writing which may be ambiguous
(c) must be in writing, factual, explicit and final (d) either (a) or (b) or (c).
319, A resolution passed by a majority of the partners that their partnership should be dissolved, is not
(a) a notice of dissolution of the firm within the meaning of section 43 of the Act
(b) an agreement to dissolve the firm under section 40 of the Act
Page 53
(c) a record of deliberations arrived at by a majoritv of votes
320. Dissolution of a firm by court has been dealt with under
(a) section 44 of the Act b) section 43 of the Act
() section 46 of the Act

prescribes
(a) nine grounds of dissolution of a firm by
COurt
(b) seven grounds of dissolution of a firm by
court
(c) five grounds of dissolution of a firm by
COurt
(d) four grounds of dissolution of a firm by Court.
322. Under section 44 of the Indian Partnership Act, 1932, the court can order dissolution of a firm on the ground of
insanity ordinarily where
(a) 2 dormant partner becomes insane
(b) an active partner becomes insane
323. A suit for dissolution of a firm on the ground of unsoundness of mind of a partner, can be filed under section
44(a) of the Act, by
(a) any One of the partners
b) the insane partner
(d) onlv (a) and not (b).
324. The date of dissolution of a firm where the court orders for dissolution of a firm on the ground of insanity of a
partner under section 44a) of the Act, shall be
(a) the date of insarity of the partner
(b) the date on which the suit for dissolution was filed
(c) the date of the order
(dj the date of the order or any other date fixed by the court.
325. Under section 44(b) of the Act the court can order dissolution of a firm, where a partner becomes
(a) permanently incapable of performing his đuties as partner
b) ternporarily incapable of performing his duties as partner
(c) eiter (a) or (b)
Page 54
326. A suit for dissolution of a firm on the gros3 of permanent incapability of a partner, under section 44(b) of the
Act can be filed by (a) any partner including the partner who hae become permanently incapable
(b) any partner, other than the partner who has become permanently incapable
(c) the partner who has become permanently incapable only
327. The permanent incapacity of a partner under section 44(b) of the Act
(a) must be due to illnesS-mental or physical (b) must be due to disablement of any kind
(c) may be due to illness or disablement of any kind
328. Ina suit for dissolution of a firm and accounts
a creditor is entitled to be added as
(a) a necessary party
(b) a proper party
329. Misconduct of a partner is a ground on which the court can order dissolution of a firm, as provided under
(a) section 44(b) of the Act
(b) section 44(c) of the Act
(c) section 44(d) of the Act
(d) section 44(g) of the Act.
330. Under section 44(0) of the Indian Partnership Act, 1932, the misconduct of a partner to order dissolution of a
firm must be
(a) such which is likely to affect the business prospects of the firm
(b) the one connected with the business of the firm

331. A suit for the dissolution of a firm on the ground of misconduct of a partner, under section 44(c) of the Act, can
be instituted by (a) the partner who has misconducted himself only
(b) any partner including the one who has misconducted himself
(C) any partner other than the one who has misconducted himself
(d) only (b) is correct and not (a) or (c).
332. Which of the following is not held to be misconduct within the meaning of section
Page 55
A4tc) of the Act, warranting an order of dissolution of a firm by the court
(a) commiting adutery with several women in the city where the business was carried on by the firm, by a partner of
the firm engaged in banking
(b) committing adultery with the wife of a fellow partner
(c) conviction for travelling without ticket (d) misconduct towards the clients of the firm. 333. The court can order for
dissolution of firm under section 44(d) of the Act, where a partner is guilty of
(a) wilful & persistent branch of agreement for management of affairs or conduct of business, of the firm
(b) conducting in such a manner making it not reasonable practical for other partners to carry on busincss in
partnership with him (c) either (a) or (b)
334. Under section 444d) of the Indian Partnership Act, 1932, the wilful and persistent breach of agreement on the
part of a partner must relate to the
(a) express contract between the partners (b) implied duties and obligations
(c) only (a) and not (b)
335. In order to invoke the power of the court under section 444d) of the Act, the alleged violation of the articles of
contract of partnership, on the part of a partner
la) must be of substantial nature
(b) may be of trifling nature
(c) may be a partnership squable (d) either (a) or (b) or (c).
336. The action for the dissolution of a firm under section 444d) of the Act can be brought by
partner
(a) any partner including the
responsible for destruction of mutual confidence
(D) any partner other than the one responsible for destruction of mutual confidence
(©) the managing partner irrespective of Whether he is responsible for destruction of mutual confidehnce
(d) only (c) and not (a) or (b).
O97. Clause (e) of section 44 of the Indian Partnership Act, 1932, covers cases of
(a) voluntary transfer of his interest in the partnership, by a partner
Page 56
(b) involuntary transfer of his interest in the partnership by a partner (c) both (a) and (h)
(d) neither (a) or (b).
338. An action for đissolution of a firm nder section 44(e) of the Act, lies where a partner has transferred his interest
in the partnership firm
(a) wholly
(b) partly
(c) fractionally
(d) either wholly or partly or fractionally.
339. A dissolution of a firm can be claimed under section 44te) of the Act, where a partner has transferred his
interest in the partnership firm
to
(a) a partner
(b) a third party
340. An action for dissolution of a firm under section 44(e) of the Act can be brought by
(a) any partner including the partner who has transferred his interest
(b) any partner other than the partner who has transferred his interest
(c) the transferee of the interest (d) either (b) or (c).
341. In cases, where there is an agreement to purchase the share of a partner, the value of the share of the outgoing
partner or retiring partner shall be ascertained on the basis of (a) value of share on the date of retirement (b) value
of share on the date of admission of the retiring partner
(c) vałue on the date of commencement of the partership business
(d) none of above.
342. For the purposes of section 444) of the Indian Partnership Act, 1932, the luss must be attributable to
(a) any nterent defect in the business
(b) the mismaragenent
(c) either (a) ox (b)
(d) totth (a) ard (b)
343. The court is enpowered to oder dissulution of a fi where t is just and equitabie to dissolve the fiv, under
(a} seticn 14(g)of the Ast (b) extarn 14) of the Act (s) xtion 4e) ot the Act (d) sextioan 14(d) of the Act.
Page 57
344. Just and equitable' within the meaning of section 444g) of the Act, means (a) converient
(b) something tnore than convenient
(c) opirion of the court to be the best course (d) either (a) or (b) or (c).
345. Section 44{g) of the Indian Partnership Act, 1932, is to be regarded as
(a) independent of section 44(a) to 44() of the Act
(bj ejusdem generis with sections 44(a) to 44() of the Act
{c) either (a) or (b)
(d) oniy (a) and not (b).
346. In which of the following cases, it is held to be just and equitable to order dissolution under section 44(g) of the
Act
(a) where there is a state of hostility between partners resulting in a breakdown of mutual confidence
(b) where the partners habitually change one another with gross misconduct in the partnershíp affairs
(c) where the partner has abandoned his rights and obligations under the partnership (d) all the above.
347. Where the arbitration clause in a partnership agreement provides that the question whether the partnership
should be dissolved, is to be decided by the arbitrator, a suit for dissolution of partnership under section 44(g) of the
Act (a) the suit is liable to be stayed
(b) the court has the discretion to stay or not to stay the suit
(c) it is mandatory for the court to stay the suit (d) either (a) or (c).
(a) mode of settlerment of accounts between partners

(b) authority of partners for the purposes of winding up
(c) liability for acts of the partners after classification
(d) right of partners to have the business would up after dissolution.
349. Section 45 of the Indian Partnership Act, 1932, requires
(a) that a public notice of the fact of dissolution should be given
(b) that a public notice of the fact of dissolution need not be given
Page 58
(c) notice of the fact of dissolution be given each of the partners
(d) notice of the fact of dissolution need not he given to any of the partners.
350. In the absence of a public notice of the fact nf dissolution of the firm, the authority of partners
(a) stands determined between the partners as well as publicly
(b) does not stand determined between the partners nor publicly
(c) stands determined between the partners but publicly it continues
(d) stands determined publíicly, but continues between the partners.
351. Under section 45 of the Indian Partnership Act, 1932, if no public notice of the dissolution of the firm is given
and a partner contracts in the name of the firm, which would have been within the implied authority of the partner
(a) only that partner will be liable who has entered into the contract
(b) that partner and all his co-partners shall be liable
(c) only the other co-partners shall be liable (d) neither that partner nor his co-partners shall be liable.
352. Who amongst the following is not liable, in the absence of a public notice of dissolution, under section 45 of the
Indian Partnership Act, 1932, after dissolution of the firm
(a) deceased partner
(b) insolvent partner
(c) dormant partner (d) all the above.
353. It is necessary under section 45 of the Indian Partnership Act, 1932, that the public notice as to the dissolution
of the firm, be given by (a) the firm and the partners separately
(b) all the partners separately
(c) any of the partners
(d) the majority of the partners separately.
354. Rights of partners to have the business wound

up after dissolution has been provided under (a) section 46 of the Act
355. The right of partners after dissolution under section 46 of the Indian Partner-ship Act, 1932 is in the nature of
Page 59
(a) lien affecting partnership surplus assets
particular piece of
(b) general lien upon the partnership surplus
assets
S6 The right of a partner under section 46 of the Indian Partnership Act, 1932 extends
Over the property of the firm
(b) to separate interest of each partner in such
(a)
property
(d) onlv (a) and not (b).
357. In a firm where a partnership is in respect of profits only but that which produces those profits belongs
exclusively to one of the partners, under section 46 of the Indian Partnership Act, 1932
(a) the lien extends to the profits as well as to that whih produces the profits
(b) the lien is confined to the profits and does not extend to that which produces the profits
(c) the lien neither extends to the profits nor to that which produces the profits
358. As a general ruie
(a) a partner can bring an action against the other partner for partnership without praying for dissolution
(b) a partner cannot bring an action against the other partner for partnership without praying for dissolution
(C) a partner can bring an action against the other partner for partnership accounts without praying for dissolution
only with the permission of the court
(a) ondy (a) and not (b) or (c).
can be
339. Which of the following suits
aaintained by one partner against the other Partner during the subsistence of partnership without praying for
dissolution
(a) suit in respect of any transaction which
forms an item of the partnership acCount
(b) suít for money lent by him to a firm of
which he is a member
Suit for contributions in respect of moneys an express borrowed by him under greement with them for the purposes
of partnership (d) all the above.
Page 60
360. Where an individual is a common partner in two firms,
(a) no action can be brought by one firm
against the other upon any transaction between them so long as that individual continues to be a common partner
(b) an action can be brought by one firm against the other upon any transaction between them even though that
individual continues to be a common partner
(c) an action can be brought by one firm against the other firm upon any transaction between them but the common
partner shall not be arrayed as a defendant
(d) an action can be brought by one firm against the other firm upon any transaction between them but the common
partner shall be excluded from participating in the proceedings.
361. In a suit for partnership accounts, all the partners and the legal representatives should be made parties and if a
party is added after the ban of limitation
(a) the suit shall be barred against that party only
(b) the suit will be barred against all the parties (c) the suit shall continue against that party as well and the bar of
limitation shall not operate
(d) the suit will continue against the already impleaded parties.
362. In a suit for dissolution and accounts of a firm which carried on business outside India, the relevant date for
determining the exchange rate
(a) is the date on which the suit was instituted (b) is the date on which the preliminary decree is passed
(c) is the date on which the final decree is passed

(d) is the date on which the accounts had been closed and the business wound up.
363. Where a partnership is dissolved by the death of a partner, in the absence of a provision expressly meant and
clearly implied, a legal representative of the deceased partner is (a) entitled to a share in the goodwill
(b) entitled to a share in the goodwill only with the consent of all other partners
(c) not entitled to a share in the goodwill at all (d) entitled to a share in the goodwill only if the court so directs.
Page 61
364. Where the exÍstence of a partnership is in issue, the court shall
(a) always appoint a receiver
(b) never appoint a receiver
(c) be slow in appointing the receiver (d) either (a) or (c).
365. In case of partnership, receivers and managers appointed by the court are
(a) officers of the court and succeed to the personal fiduciary relations of the partners (b) officers of the court and do
not succeed to the personal fiduciary relations of the partners
(c) not officers of the court and succeed to the personal fiduciary relations of the partners (d) nor officers of the court
nor succeed to the personal fiduciary relation of the partners. 366. A partner appointed as receiver by the court on
the usual terms is
(a) entitied as such to his rernuneration and
costs out of the assets in his hand, although as a partner, he is in debt and unable to pay (b) entitled as such to his
renuneration and costs out of the assets in his hand only if as a partner is not in debt
(c) not entitied to any remuneratíon and costs (d) not entitied to any renuneration but only Costs.
367. Assets of 2 partnership in the hands of a receiver
(a) can be attached by a creditor of the firm always
b) cannot be attached by a creditor of the firmn at all
(c) cannot be attached by a creditor of the firm without first obtaining the leave of the
COurt
368. The period of limitation for a suít for an account and a share of the profits of dissolved partnership, where the
instrument of partnership is not registered, is
(a) ore year frorn the date of dissolution (b) two years frorn the date of dissolution (c) six months from the date of
disolution
(d) three years from the date of dissolution.

369. Where the instrument of partnership is registered, the period of limitation for a suit for an account and a share
of the profits of a dissolved partnership is
(aj three years frorn the date of dissolution (b) twelve years from the date of dissolution
Page 62
(c) thírty years from the date of dishutim
(d) one year from the date of dissolution
370. The period of limitation for a suit by a legal representatíve of the deceased partner for
share in the assets of the partnership is
(a) three years from the end of the finariai year in whích the death of the partner has
taken place
(b) three years from the end of the calendar year in whích the death of the partnes has taken place
(c) three years from the death of the decessed partner
(d) either (a) or (b) or (c) which ever is later. 371. In Mir Abdul Khalid v. Abdul Gaffar Sheriff & others, AIR 1985 SC
608, a suit for accounts against the retired partner filed beyond three years from the date of dissolution was held to
be
(a) within limitation as the period of lirnitation for such a suit is 30 years
(b) withín limitation as the period of limitation for such a suit is 12 years
(c) barred by limitation as the period st limitation for such a suit is six months
(d) barred by limitation as the period of limitation for such a suit is three years.
372. Interest on any sum found due to a partner
runs from
(a) the date of the plaint
(b) the date of the preliminary decree
(c) the date of the final decree
373. Reconstitution of a partnership firm means and implies that
(a) the firm became extinct and thereafter re formulated
(b) the firm never became extinct and continued under altered circumstances a5 to membership
(c) a change in the profit sharing ratio with all existing partners

374, Section 47 of the Indian Partnership Act, 1932 provides for
(a) mode of settlement of accounts betwee partners after dissolution
(b) rights of partners to have the business wound up after dissolution
(c) continuíng authority of partners tor purposes of winding up after dissolution
Page 63
(d) liability for acts of the partners done after dissolution.
Act, 1932, the authority of a partner is
(a) limited to certain purposes
b) general and not limited to certain purposes (c) absolute
id) the authority of a partner as in emergency. 76. The partner's authority to act for the firm and to bind the co-
partners under section 47 of the Indian Partnership Act, 1932, continues
(a) so far as it is necessary for the purposes of winding up the affairs of the firm after dissolution
(b) to complete transactions begun, but not finished at the time of dissolution of the firm
377. In case where the dissolution of firm has taken place by efflux of time, and at that time certain transactions
remained unfinished, for a suit for accounts, the period of limitation of three years shall commence from
(a) the date of completion of the last transaction
(b) the date of expiry of the term of the partnership
(c) the date of completion of the first transaction
(d) either (a) or (b) or (c) as per the discretion of the court.
378. The proviso to section 47 of the Indian Partnership Act, 1932
(a) affects the liability of the firm for the acts of any partner adjudicated an insolvent
(b) affects the liability of any person who represents himself as a partner of the insolvent
(c) does not affect the liability of any person who represents himself as a partner of the insolvent
2 Where there is no assignment of right, title or Interest in the earlier firm to the re-constituted firm, the original firm
(a) can sue in the name of the firm for recovery before
its
of its claims accrued
) can be sued in the name of the firm in respect of its liabilities which accrued prior to change in its constitution
reconstitution
Page 64
380. The rules as to the settlement of account of a firm after dissolution are contained in
(c) section 47 of the Act
381. The scheme of settlement of account of a fim after dissolution as provided under section 48
of the Indian Partnership Act, 1932
(a) can be altered by the court
(b) can be altered by the partners by
agreement
(c) cannot be altered
382. In respect of a sum of mnoney given by a partner to the firm, in addition to the capital contributions, is a loan to
the business which ranks
(a) above the outside creditors
(b) equal to the outside creditors
(c) lower than the outside creditors
(d) the same as claim of the partrners on capital account.
383. The loan(s) advanced to the business by a partner, in the event of settlement of accounts under section 48 of
the Indian Partnership Act, 1932, rank
(a) above the claim of the partners on capital account
(b) lower than the claims of the partrners on capital account

(c) equal to the claim of the partners on capital account
(a) equal to the claim of the outside creditors. 384. Under section 48 of the Indian Partnership
Act, 1932, the residue, on the settlement of accounts after dissolution, shall be divided among the partners (a)
equally the (b) in contributions
proportion of their capital
(c) in the proportion of their profit sharing ratio
385. Where at the stage of refund of capital to partners, it is found that the assets are not sufficient to repay each
partner his capital in full, then the deficiency will have to be made by the partners in
(a) capital contribution/sharing ratio
Page 65
(b) profit sharing ratio (c) equal proportion (d) either (a) or (b) or (c).
386. After the liabilities of the firm to creditors, on dissolution, have been satisfied, passing the remaining assets not
sufficient to repay the capital in full, and one of the partner fails to pay his share on account of his insolvency, the
solvent partners are
(a) not bound to make up the share of losses of the insolvent partner
(b) bound to make up the share of losses of the insolvent partner
(c) bound to make up the share of losses of the insolvent partner only if directed by the
court
387. On the settlement of account after dissolution of a firm, the assets should be valued on the basis of
(a) the book-value
(b) the book-value adjusted with the cost-
index
(c) the market value
388. The distribution of surplus assets of the partnership firm, among the partners amounts
to
(a) adjustment of the rights of the partners in the assents of the partnership
(b) transfer of assets of the partnership

(c) release of the assets of the partnership
(d) relinquishment of the assets of the partnership.
(a) payment of separate debts of the partners in priority to payment of firm debts out of the partnership assets
(b) payment of firm debts in priority to payment of separate debts of the partners out of the partnership assets
(c) payment of firm debts and the separate debts of the partners simultaneously, out of the partnership assets
(d) payment of firm debts and the separate debts of the partners out of the partnership assets as per the directions
of the court.
390. According to section 49 of the Indian Partnership Act, 1932, out of the separate property of a partner
Page 66
(a) payment of firm debt shal| have priority
over the payment of separate debt of the partner
(b) payment of firm debt shall be simultaneous
to payment of separate debt of the partner without any priority
(c) payment of firm debt and the separate debts of the partner as per the agreement between the partners
(d) payment of separate debts of the partner in priority over the firm debts.
391, Section 49 of the Indian Partnership Act, 1932 lays down the rule that in cases of firm debts and the separate
debts of a partner
(a) the partnership property shall be applied
first in payment of firm debts and the separate property of a partner shall be applied first in payment of his separate
debts
(b) the partnership property and the separate property of a partner shall be applied first in payment of firm debt and
thereafter payment of separate debts of the partner (c) the partnership property and the separate property of a
partner shall be applied first in payment of separate debts of the partner and thereafter in payment of firm debts (d)
the partnership property shall be applied first in payment of the separate debts of the partners and the separate
property of a partner shall be applied first in payment of firm debts, if the separate debts of the partner are more
than the firm debt. 392. Under section 49 of the Indian Partnership
Act, 1932
(a) the partnership property can be applied for payment of separate debts of a partner (b) the share of the partner in
the partnership property can be applied for paymernt of separate debts of a partner
(c) the share of the partner in the partnership property, after payment of firm debts, shall be applied for payment of
separate debts ot a partner
(d) the share of the partner in the partnership property, after the payment of firm debts, shall not be paid to the
partner if there are separate debts of the partner.
393. Section 50 of the Indian Partnership Act, 1932, is an extension of the principle laid down under
Page 67
(a) section 16(d) of the Act (b) section 16{c) of the Act (c) section 16(b) of the Act (d) section l6(a) of the Act.
s94. Section 50 of the Indian Partnership Act, 1932. applies in a case where the firm is dissolved on account of
(b) death of a partner
(c) adjudication of a partner as insolvent (d) all the above.
395. Under the proviso to section 50 of the ndian Partnership Act, 1932, the purchase of the goodwill of the firm, on
dissolution
(a) is not to account for the personal profits earned after dissolution and before winding up, in the final settlenment
of accounts
(b) is to account for the personal profits earned after dissolution and before winding up, in the final settlement of
accounts
(c) is to account for the personal profits earned after dissolution and before winding up, in the final settlement of
accounts only if the considera-tion for purchase of goodwill is inadequate
(d) can be restrained from using the firm name after dissolution and before the winding
up.
applies to
(a) partnership at will
(b) partnership for a particular undertaking
(c) partrnership for a fixed term
(d) all the above.
S97. Section 51 of the Indian Partnership Act, 1932, does not appiy to đissolution of a firm occasioned by
(a) death of a partner
(0) adjudication of a partrer as insolvent (c) notice
398. Under section 51 of the Indian Partnership Act, 1932, on pre-mature dissolution of a firm, the partner having
paid premíun for

(a) is entitled to repayment of the entire
admission
(b) is entitled repayment of a reasonable part
premium
1S not entitled for any refund of premium (d) either (a) or (b).
of the premium
Page 68
399. A partner who has paid premium for admission into the partnership, in the pre- mature dissolution of the firm,
under section 51 of the Indian Partnership Act, 1932, is not entitled to refund of the premium if the dissolution is
occasioned by
(a) his own misconduct
(b) agreement between the partrners, which is silent about the refund of the premiun
400. The remedy of rescission of a partnership contract is available under
(a) the Indian Contract Act, 1872
(b) the Indian Partnership Act, 1932
(c) the Indian Trusts Act, 1882
(d) all the above.
401. A partnership contract based on fraud or
misrepresentation is
(a) valid
(b) voidable at the instance of the victim of fraud or misrepresentation
(c) voidable at the instance of any of the partners
(d) void.
402. The right to rescind the contract of partnership (a) is an absolute one and cannot be lost (b) is lost if the contract
is not repudiated within a reasonable time of discovery of fraud
(c) is lost if the contract is not repudiated within one year of discovery of fraud
(d) is lost if the contract is not repudiated within 3 years of discovery of fraud.
403. The right of rescind the contract of

partnership is lost by
(a) laches
(b) affirmation
(c) disabling himself from restoring what he may himself have received
404. The rights of a partner entitled to rescind a contract of partnership on the ground of fraud or misrepresentation
have been prescribed under
(c) sectian 52 of the Act (d) section 51 of the Act.
405. Undet section 52 of the Indian Partnership Act, 1932, the partner entitled to rescind the
Page 69
contract of partneship on the ground of fraud or misrepresentation has
(a) a right of lien over the partnership property
(b) a right to rank as creditor of the firm
(c) a right to be indemnified by the guilty
partner
(d) all the above.
(a) agreements in restraint of trade by the
partners
use of firm name or property, of a partner after dissolution
(b) right to restrain from
(c) right to restrain fromn use of firm name or property, of a partner during the subsistence of partnership
(d) all the above.
407. Under section 53 of the Indian Partnership Act, 1932, the duration of restraint can be
(a) for a reasonable period
(b) for a period agreed upon by the partners (c) for a period after dissolution upto which the winding up of the firm
lasts
(d) for a period fixed by the court.
408, The Goodwill of a firm is stated to be an asset of the firm, in the Indian Partnership Act, 1932, under
(a) section 54 of the Act (b) section 55(1) of the Act
(c) section 55(2) of the Act
{d) section 55(3) of the Act.
409. Under section 55(1) of the Indian Partnership Act, 1932, the goodwill as an asset of the firm can be sold
(a) separately from the other property of the
firm
(b) alongwith the other property of the firm () either (a) or (b)
(d) only (b) and not (c).
410. Under section 55(1) of the Indian Partneship Act, 1932, goodwill can be taken into account
(a) when there is a general dissolution of the firm
(b) when the representative of a partner claims his share in the assets of the firm
Page 70
411. The scheme as to goodwill of a firrn under section 551) of the Indian Partnership
1932, can be altered by
(a) agreement between the partners
(b) agreetnent between the buyer of fhe
goodwill and the partrers
() the court
412. Section 55(2) of fhe Indian Partnership he 1932 provides for
(a) the right of the partrers to sell the goodwa of the firm
(b) rights of the buyer and selier of tu goodwill
(c) agreernert in restrain of trade upon sale of goodwill
(d) all the above.

413. After selling the goodwill of the firm under section 55(2) of the Indian Partnershíp Ad 1932, a partner
(a) can carry on a business competing with that of the buyer
(b) cannot carry on a business competing with that of a buyer
(c) can use the firm name
414. Where under a partnership agreement the goodwill belongs to a partner, after the dissolution, the goodwill
(a) shall belong to all the partners and everyone has a share in the goodwill
(b) shall belong to the same partner and he shall be in the sarne position as the buyer ot the goodwill
(c) shall not belong to any of the partners
(d) shall belong to the partner having highest contribution.
415. A partner, under section 55/2) of the Indian the selling
Partnership Act, 1932, after goodwill, can
(a) carTy on a business competing with that
the buyer of the goodwil! (b) advertise his
attrat
and
business
Customers
oft
416. An agreement in restraint of caryins
sinilar business as that of the firm betweet
g0odwill
the partner and the buyer of the
under section 55(3) of the Indian Partnership
Act, 1932 shall
(a) be valid if restriction imposed i are absolute

Page 71
) be valid if the restriction imposed, under
the agreement are reasonable, but may not relate to the period or local limits
(c) be invalid
id) be valid if relates to period or local limits and the restrictions imposed reasonable.
are
17. An application for registration of a firm under section 58 of the Indian Registration Act, 1932,
is
(a) is required to be presented personally to the Registrar of firm
(b) is required to be sent by post
418. Under the scheme of the Indian Partnership
Act, 1932, the registration of a firm is
(a) compulsory
(b) optional
(c) not required (d) prohibited.
419. The application/statemnent for registration of a fim, under section 58 of the Indian Partnership Act, 1932
(a) has to be signed by all the partners
(b) has to be signed by a majority of partners (c) has to be signed by the managing partner (d) either (a) or (b) or (c).
420. Sub-section (3) of section 58 of the Indian Partnership Act, 1932, furnishes certain words which
(a) can always form part of the firm name (D) can never form part of the firm name
(C) which the firm name shall not contain without the written consent of the State Government
(a) which the firm name shall not contain without the written per-mission of the Central Government.
41, Under Order XXXIII Rule 1 CPC, a suit by a Partnership firm, can be brought in the
(a) name of the firm as plaintiff
(b) name of the partner as plaintiff
() name of a managing partner (d) either (a) or (b) (C).

422., Where a firm whose proposed name is similar
to that of a firm already registered, the registrar of firms
(a) has to refuse registration
0 cannot refuse registration
(©) may refuse registration
Page 72
(d) has to return the statement to the party for change of name.
423. The changes in the constitution of the firm or dissolution of the firm, where the firm is a registered firm, under
section 63 of the Indian Partnership Act, 1932, has to be notified to the Registrar by
(a) all the partners
(b) the majority of partners
(c) any of the partners
(d) an outsider/creditor of the firm.
424. Where in a registered firm, a minor who has been admitted to the benefits of the firm attains majority and
makes his election to become or not to become a partner, under section 63(2) of the Indian Partnership Act, 1932,
has to be notified to the Registrar by (a) the minor who on attaining majority has exercised the option
(b) all the partners
(c) the majority of the partners (d) any creditor of the firm.
425. The changes/dissolution/election of the minor on attaining majority, of a firm, has to be notified to the Registrar
within
(a) immediately on the occurrernce
(b) 60 days of the occurrence
(c) 90 days of the occurrence (d) no time limit prescribed.
426. Section 64 of the Indian Partnership Act, 1932, authorises
(a) rectification of mistakes in the register of firms maintained by the Registrar
(b) rectification of mistakes in the documents submitted by a firm with the Registrar
427. An application for rectification of mistake(s) in the document filed with the Registrar of firms, by a firm, under
section 64 of the Indian Partnership Act, 1932
(a) has to be signed by all the partners
(b) has to be signed by the majority of the partners
(c) has to be signed by the managing partner only
(d) has to be signed by any partner.
lays down
(a) the rules of procedure
(b) the rules of evidence
(c) the rules of adjective law
Page 73
429. As regards the statements or intimation recorded or noted in the Register of firms, section 68 of the Indian
Partnership Act, 1932, provides for its being
(a) a presumption of fact against the person making the statement
(b) a rebuttable presumption of law against the person making the statement
(d) an irrebuttable presumption of law against the person making the statement.
430. The effects of non-registration of a firm under the Indian Partnership Act, 1932, have been prescribed under
(b) section 70 of the Act (c)
section 68 of the Act
431. A partnership firm is required to be registered
under
(a) the Indian Registration Act, 1908
(b) the Companies Act, 1956
(c) the Indian Partnership Act, 1932 (d) either (a) or (b) or (c).
432. Maintainability of a suit by a partnership
firm, under section 69 of the Indian

Partnership Act, 1932 is
(a) a question of fact
(b) a question of law
(c) a mixed question of fact & law
is a
(a) direct compulsion for registration
(b) indirect compulsion for registration
(c) non compulsion for registration (d) neither (a) nor (b).
434. Section 69 of the Indian Partnership Act, 1932 prohibits
(a) enforcement of rights in respect of unregistered firms
(b) does not prohibit enforcement of rights in respect of unregistered firms
(c) enforcement of rights in respect of registered firm
(d) none of above.
435. In Commissioner of Income Tax v. Jaya Lakshmi Rice & Oil Mills, AIR 1971 SC 1015, it has been held
Page 74
(a) where a suit has been fle
registration, such t can be terttiet subsequent registratir
(b) where a suit has beer filed registration, such suit te reti subsequent registratíon
() where a suit has been files registratíon, such suit ca be tetet subsequernt rezistration rith the lee the court
(d) where a suít has been fied wcs registration, such suit cannt be rette subsequent registratíon with the ieare the
court
436. For the enforcerment ofa ríght arísing frm : contract, a partner of an unregistered fie under section 69(1) of the
Indían Partnertis Act, 1932 can sue
(a) the firm
(b) the co partners)

437. A partner of an unregistered fim, zde section 69(1) of the Indian Registraticn Ad 1932, cannot file a suit azzinst
the firm or partners for the enforcement of a right (a) arisíng out ofa contract
(b) conferred by the Act
(d) neither (a) nor (b). 438. Which
of the following 2mounts enforcemnent of a right, by a partner of unregistered firm, arising out of a contrat between
the parties
(a) an action between two forrmer partners enforce an agreement restraining z outgoing partner from carryng on in
se area any business similar to that of the fi (b) suit for recovery of money due on i contract entered into between the
partres of an unregistered firn after settlement accounts between partners of a dissove firm
(c) suit for permanent injunction for pass off
439. In Shreeram Finance Corporation v. Yasin Khs & Others, AIR 1989 SC 1764, it has been held
that
(a) where there was a change in the constitution of the firm, a suit instituted after change in constitution, but before
the
Page 75
change notified in the register, is not maintainable
where there was a change in the constitution of the firm, a suit instituted after the change but before the change
notified in the register is maintainable, as the notifying change in the register shall relate back to the date of
application for change
(c) The maintainability of a suit, where there was a change in the constitution of the irm, a suit instituted after the
change but before the change notified in the register, shall be in the discretion of the court (d) both (b) and (c).
40. A suit for the enforcement of a right arising out of a contract against third party, under section 69(2) of the Indian
Partnership Act, 1932, can be instituted by
(a) an unregistered firm
b) a registered firm
(c) a partner of a firm
41. The bar of section 69(2) of the Indian Partnership Act, 1932, applies when the right which is sought to be
enforced arises otherwise by way of
(a) torts
(b) statutory provisions

2 For the bar of section 69(2) of the Indian Partnership Act, 1932, not to apply to a suit instituted by a fim against a
third party for entorcing the rights arising out of contract, the fim must be a registered firm
(a) on the date when the cause of action has arisen
O) on the date when the suit was instituted (C) on the date when the suit was decided (d) either (a) or (b) or (c).
443. Where a suit instituted by an unregistered firm
3ainst a third party for enforcing its rights aising out of a contract, has been dismissed nder section 69(2) of the
Indian Partneship
Act, 1932, a fresh suit on the same cause of
chon, after registration of the firm is (a) barred by res judicata
(b) maintainable only if the court while
dismissing the earlier suit has granted the liberty to file a fresh one
S) maintainable if within limitation
Page 76
(d) maintainable only with the leave of the
Court.
444. Sub-section (2) of section 69 of the Indian Partnership Act, 1932 bars
(a) a suit to enforce a right arising from a contract by or on behalf of a firm against any third party in the case of
unregistered firm (b) a suit to enforce a right arising from a contract by or on behalf of a firm against any third party
irrespective of registration (c) does not bar a suit
445. The bar under section 69 of the Indian Partnership Act, 1932 applies to
(a) arbitration proceedings (b) execution proceedings (c) both (a) and (b) (d) neither (a) nor (b).
446. It has been held that the words "other proceedings" in section 69(3) of the Indian Partnership Act, 1932, must
receive their full meaning untranslated by the words "a claim to set off", the latter words neither intend nor can be
centred to cut-down the generality of the words "other proceedings", by the Supreme Court in
(a) Girdharmal Kapur Chand v. Dev Raj (b) Commissioner of I.T. v. Jayalakshmi Rice & Oil Mills
(c) Jagdish Chandra Gupta v. Kajaria Traders (India) Ltd. (d) Loonkaran Sethia v. Ivan E-John.
447. The distribution of surplus on dissolution of partnership

(a) does not amount to transfer of assets (b) does amount to transfer of assets
(c) assets are not distributed on dissolution (d) none of above.
448. Under section 69(3) of the Indian Partnership Act, 1932, a partner of an unregistered firm has a right to sue
(a) for the dissolution of the firm
(b) for the accounts of a dissolved firm
(c) for the realisation of the assets of a dissolved firm
(d) all the above.
449. The right to sue for the realisation of the assets of the dissolved firm by a partner of an unregistered firm, under
section 69(3) of the Indian Partnership Act, 1932, a partner can sue
(a) a third party (b) a co-partner
(c) both a third party and a co-partner (d) either a third party or a co-partner.
450. Which of the following is not a suit for the realisation of assets of an unregistered dissolved firm
(a) A suit ty a partner of an unregistered dissolved firm to recover damages for breach of a contract
(b) A suit by a partner of an unregistered dissolved firm for recovery of money after suit during the continuance of
partnership was dismissed
(c) a suit by former partners of an unregistered dissolve firm for compensation for non- delivery of consignment
(d) neither (a) nor b) or (c).
451. non-registration of a partnership firm under section 69 of the Indian Partnership Act, 1932, is not a bar for a firm
in respect of
(a) civil proceedings (b) criminal proceedings
(c) both civil and criminal proceedings (d) neither civil nor criminal proceedings.
452. in absence of a contract between the partners, after a firm being dissolved every partner or his representative
has a right
(a) to restrain any other partner representatives from carrying on similar business in the firm name
(b) has no right to restrain any other partner or representatives from carrying on similar business in the firm name
(c) only (b) is correct
(d) None of above.
458. When among the following appoints the Registrar of Firms in the States?
(a) concerned State Government (b) Central Government
(c) Chairman of Company Law Board (CLB) (d) Registrar of companies.
454. Penalty for furnishing false particulars within the meaning of Section 70 amounts to:
(a) up to 3 months imprisonment or with fine or with both
(b) up to 6 months imprisonment or with fine or with both
(c) up to 9 months imprisonment or with fine or with both
(d) None of the above
455. In setting the account of the firm after dissolution, the goodwill shall:
(a) be included in the assets
(b) it may be sold either separately along, with other property of the firm
(d) None of above.
456. A firm can be dissolved

(a) with consent of all the partners (b) in accordance with a contract between the partners
(c) both (a) and (b) (d) None of above.
457. Dissolution of firm occurs when:

(a) dissolution of partnership between all the partnerships (b) dissolution of 4 of partnership
(c) dissolution of 2/3 of partnership (d) at least one leaves the firm.
458. A partner may retire:

(a) with the consent of all the other partners
(b) in accordance with an express agreement by the partners
(c) where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire
(d) All the above.
459. Where under a contract between the partners, the firm is not dissolved by the death of & partner, the estate of
a deceased partner:
(a) is not liable for any act of the firm done after his death (b) is liable for any act of the firm done after his
death
(c) is forfeited by government (d) None of above.
460. Subject to the contract between the partners, the property of the firm shall be:
(a) held and used by the partners exclusively for the purposes of business
(b) not eld and used by the partner exclusively for the purports of business
(c) shall be deposited into the bank custody
(d) None of above.
461. Whether reference application to appoint arbitrator for taking partnership accounts (a be converted into a suit
for dissolution of partnership?
(a) yes (b) no (c) coalitional (d) exceptional.
462. Suit for dissolution is proceeding?

(a) not an independent (b) an independent (c) an invalid (d) a conditional.
A63, For retirement of partners...is necessary

(a) public notice (b) dissolution of partnership (c) non-existence of firm (d) none of the above.
464, 1f a suit is filed for recovery and transaction is made subsequent to retirement of partners from firm but plaintiff
is not aware of that fact then the partners
(a) cease to be as partners (b) continue as partners and liable for transaction
(c) are known to be as sleeping partners (d) are called as retired partners.
465. Bar of non-registration of firm under section...... of Partnership Act does not affect maintainability of petition
under section 9 of Arbitration and Conciliation Act
(a) 69 (b) 64 (c) 62 (d) 61.
466. Alterations in partnership deeds are to be brought to notice of

(a) sleeping partners (b) Registrar of Firms (c) retired partners (d) none of the above.
467. Alteration in partnership deed are to be brought to notice of Registrar of Firms within a period of ...... days
(a) 20 (b) 90 (c) 60 (d) 100.
468. Under which Act alteration of partnership becomes mandatory to inform?
(a) Partnership Act (b) Sale of Goods Act

(c) Maharashtra Amendment Act (d) none of the above.
469. Section provides recording of alteration in firm name

(a) 64 (b) 60 (c) 32(3) (d) none of the above.
470. Is it necessary to show HUF trading firm in transaction of Bills?

(a) no (b) yes (c) mandatory (d) conditionals.
471. If arbitration proceedings commence adjudicate disputes, then question for dissolution of partnership should be
settled by arbitrators. The statement to
(a) is correct (b) depends upon proceedings (c) depends upon parties (d) is incorrect.
472. If suit filed by a firm which is not registered firm on date of filing of suit and also partners not shown in register
of firms, suit will be
(a) dismissed (b) not dismissed
(c) dismissed within limitation period given for registration (d) none of the above.
473. Section. . provides for recording of entry regarding registration of firm?

(a) Section 49 (b) Section 50 (c) Section 57 (d) Section 59.
474. Agreement of partnership is in ordinary course of business dealings

(a) necessary (b) not necessary (c) based on specific performance (d) conditional
475. .is not absolved of his liability

(a) a sleeping partner (b) an outgoing partner (c) a retired partner (d) none of the above.
476. Is it necessary that Managing Partner is registered

(a) yes (b) no (c) he is independent partner (d) none of the above.
477. Mere production of document, appeal, memorandum but no registration of partner who institutes the suit does
not fulfil requirement of
(a) Order 41, rule 27 CPC (b) Order 40, rule 26 CPC (c) Order 29, rule 29 CPC (d) Order 41, rule 26
CPC.
478. A partnership firm from a proprietary concern owned by an individual

(a) is independent (b) differs (c) is subordinated (d) none of the above.
479. Partnership is.........

(a) juristic person (b) group of people (c) not a juristic person (d) a firm.
480. In which among the following cases it was held that the "assignment of share of partner inclusive of immovable
property does not require registration under Registration Act?
(a) MC. Sivagamui v. M.C. Kuppusamy, AIR 2010 Mad 1
(b) Union of India v. M/S Sarvana Construction, AIR 2010 Mad 6
{c) Thangaraja v. Ameer, AIR 2010 Mad 13
(d) Dolly Roy v. Raja Roy, AIR 2010 Ori 1.
481. A partnership firm is... ...by acts of a partner who has been adjudicated insolvent
(a) not bound (b) bound (c) independent (d) dependent.
482. In which case it was held that "Actual Starting of business prior to registration not a condition precedent under
section 4 of Partnership Act, 1932"?
(a) Registrar of Firms, Societies and Non-Trading Corporations, West Bengal v. Taruna Manny, AIR 2010 Cal 79.
(b) Bank of India v. Aswi Electricals, AlR 2010 Jhar 6
(c) Angad Das v. Union of India, AIR 2010 SC 1613
(d) C. Sebastian v. State of Kerala, AIR 2010 Ker
483. Amended provisions section of section 69 (Maharashtra Amendment Act, 1984) is in operation
(a) retrospective (b) prospective (c) not retrospective (d) not prospective.
484. What is true about the Indian Partnership Act, 1932 (9 of 1932) after the enactment of the Limited Liability
Partnership Act, 2008 (6 of 2009).
(a) the Act is not applicable to Limited Liability Partnership Firms
(b) the Act is repealed by the Limited Liability Partnership Act, 2008
(c) the Act is also applicable to Limited Liability Partnership firms
d) the Act was amended by the Limited Liability Partnership Act, 2008.
485. The Limited Liability Partnership Firms (LLPs) under the provisions of the Limited Liability Partnership Act, 2008
(6 of 2009) within the meaning of its section 3 and sections 11 to 21, is a
(a) body corporate under the Limited Liability Partnership Act, 2008
(b) body corporate under the Companies Act, 1956
(c) body corporate under the Indian Partnership Act, 1932
(d) body corporate under the Securities and Exchange Board of India Act, 1992.
486. The liability of holding out is based upon the legal principle of
(a) Estoppel (b) Agency (c) Vicarious liability (d) Constructive liability (e) All of the above.
487. By implied authority, each of the partner binds all other partners by his acts which are within the scope and
objects of partnership. ln a partnership of general commercial nature which of the following is not within the implied
authority of the partners?
(a) That every partner may pledge or sell the partnership property.
(b) That any partner may admit any liability in a suit against the firm.
(c That every partner may borrow on account of the partnership.
(d) That every partner may engage servants for the partnership business.
488. Where a partner becomes insolvent, he ceases to be the partner in the firm
(a) On the date on which order of adjudication in this regard is passed by a court of law.
(b) On the date which is agreed by him with other partners for declaring him insolvent.
(c) Either (a) or (b)
(d) Both (a) and (b).
489. The authority of a partner to bind the firm by his acts done in the usual course of business is called his "implied
authority". Such authority does not include:
(a) Selling the firm's goods.
(b) To borrow in a trading firm.
(c) Setting accounts with the persons dealing with the firm.
(d) Withdraw a suit for proceeding filed on the firm's behalf.
490. A notice to one partner operates as a notice to the whole firm. However, for that:
(a) The notice must have been given to a partner who habitually acts in the business of the firm.
(b) Notice to a dormant or a sleeping partner would also suffice.
(c) Notice to a partner who commits a fraud on the firm will not be a notice to the firm.
(d) Both (a) and (c) are correct.
491.The right to rescind the contract of partnership.

(a) Is an absolute one and cannot be lost.
(b) ls lost if the contract is not repudiated within a reasonable time of discovery of fraud.
(c) Is lost if the contract is not repudiated Within one year of discovery of fraud.
(d) ls lost if the contract is not repudiated within 3 years of discovery of fraud.
492. Where in a contract between the partners no provision is made for duration of their partnership or for
determination of their partnership, the partnership is
(a) Unlimited partnership (b) Particular partnership (c) Implied partnership (d) Partnership at will
493. Which of the following is not a mode of dissolution of firm under Indian Partnership Act, 1932?
(a) Dissolution by agreement (b) Compulsory dissolution (c) Dissolution by Registrar (d) Dissolution by Court
494. The Propositions are:

I. Where a partner of a professional business partnership borrows money in the usual and regular course of business
stating that the money is to be used for partnership business but misappropriates it, the other partners shall be
liable.
II. Where money has been borrowed by a partner without authority, but has been applied to the legitimate business
needs of the fim, the firm is liable.
III. Where the act is within the scope of the implied authority of a partner, but it has been done by him, to the
knowledge of the third party, not for the firm but for his own purposes, the firm is liable.
Which of the following is true in accordance with Indian Partnership Act, 1932 as to the aforesaid propositions?
(a) I is correct, II and IiI are incorrect
(b) I &ll are correct, III is incorrect
(c) I, II & III, are correct
(d) II & II are correct, I is incorrect
495. Goodwill of a partnership business is the property of the partnership

(a) under Section 14 (b) under Section 13 (c) under Section 12 (d) under Section 11
496. On the death of a sole proprietor, his/her heirs automatically become the partners of old firm. This statement is
(a) True (b) Partly true (c) False (d) None of these
497. Which of the following is the duty of a partner?

1. Duty of absolute good faith 2. Duty to render the true account
3. Duty not to compete 4. Proper use of property
(a) 1,2 and 4 (b) 2, 3 and 4 (c) 1 and 3 (d) All of the above
498. A firm consists of X,Y and Z. A who is not a partner, makes a representation to B that he is also a partner and on
the faith of this representation B gives credit to the firm.
(a) B can make A liable on the basis of holding out (b) A is estopped from denying that he is a partner in the
firm
(c) X,Y and Z will be liable for A's act (d) Both a and b
499. The deed provided that the partnership was to continue till there were two partners. In which of the following
cases the Supreme Court held that it was a provision for duration and therefore the firm was not at Will ?
(a) CSTv. Kelukkutty (b) Neuw Horizon Ltd v. Union of India
(c) uảuman v. Aslum (d) None of the above
500. Which of the following is not a partnership?

(a) A club (b) A debating society (c) A resident's welfare association (d) All of the above
501. In which of the following cases the Supreme Court held that by agreement between the partners, a partner can
be given remuneration for attending partnership work:
(a) VD Dhanwatey v. CIT (b) CIT v. Juggilal (c) Dulichand v. CIT (d) None of the above
502. Distinction between retirement and dissolution was explained by Supreme Court is explained in
(a) CITv. A W Figgis and Co (b) Muralidhar v. CIT (c) CITv. Shah Mohan Das Sadhuram (d) None of the above
503. In which of the following cases the Supreme Court held that quota is not an asset of the firm
(a) Shadilal v. Nagin Chand (b)VH Patel v. HH Patel
(c) Addankí Narayanappa v. Bhaskara Krishnappa (d) None of the above
504. Where partners upon or in anticipation of the that some or all of them will not carry on a dissolution of the firm
make an agreement business similar to that of the firm within specified period or within specified local limits, such
agreement is
(a) Valid, if restrictions imposed are reasonable; notwithstanding anything contained in Section 27 of the Indian
Contract Act
(b) Void, irrespective of the nature of restrictions imposed, on the ground of being an agreement in restraint of trade
(c) Voidable
(d) None of the above
505. In which of the following situations, a public notice is not required to be given under the Indian Partnership Act,
1932
(a) When a partner retires from the firm (b) When partner is expelled from the firm
(c) When the firm is dissolved (d) When an alteration is made in the name of the firm
506. An act of firm means:
(a) Any act of partner or agent of the firm which gives rise toa right enforceable by or against the firm
(b) Any act by all the partners
(c) Any omission by all the partners
(d) All of the above
507. Find out the correct answer from the following statements for partnership.
(a) In overall analysis, it appears that every agency is based on mutual partnership
(b) On comparing the functions, every partner happens to be sleeping partner
(c) There must be an agreement entered into by all the persons forming partnership.
(d) The agreement must necessarily provide for sharing of profit as well as loss of the business.
508. Which one of the following statements is no correct for a dormant partner?
(a) A dormant partner is not interested in the business of the firm.
(b) A dormant partner is not liable for the firm's liability to outsiders.
(c) A dormant partner is entitled to share the profits of the firm.
(d) A dormant partner is neither active nor mown to outsider.
509. Out of the following statements, point out which one is tot correct regarding implied authority of the partner to
act as agent of the firm.
(a) He has right to sell the goods or chattels of the firm.
(b) He has right to receive payment of debts due to the firm an equitable mortgage by depositing the title deeds
belonging to the firm.
(c) He has right to make
(d) He has right to acquire immovable property on behalf of the firm.
510. Which one of the following statements is correct for a minor who has been admitted to the benefits of the
partnership? against the
(a) A creditor of the firm sues minor's share in the firm for his credit.
(b) Such minor sues partners accounts of the firm for access
(c) Such minor sues the partners for share of the profits of the firm:
(d) On finding some foulness in the business, he files a case of dissolution of the firm.
511. A partner wants to dissolve the partnership firm before the agreed time. Select which one of the following is not
a perfect ground for dissolution of the firm for such partner.
(a) That one of the partners has become permanently incapable of performing his duties as a partner
(b) That other partner has transferred the whole of his interest in the firm to a third party
(c) That the business of the firm cannot be carried on except loss
(d) That the partner suing is in adulterous relationship with the wife of another partner which is apprehensive to
affect the business of the firm

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1.

5. Unilateral dissolution of partnership by partner who is minority shareholder is

8. Whether an act of a partner or agent can be regarded as an 'act of the firm' is a

9. The term 'business has been defined under

11. The term 'partnership' has been defined under

12. Under section 4 of the Indian Partnership Act, partnership is a

14. A partnership can be

15. Section 8 of the Indian Partnership Act, 1932 provides for

Section 7 of the Indian Partnership Act provides for

19. For the purposes of income-tax, a partnership firm

20. A partnership cannot be constituted by

23. Which of the following in itself is not sufficient to constitute a partnership

24. Which of the following is a valid partnership

25. A partnership firm is entitled to enter into a partnership with

28. Which of the following is a valid partnership

31. The concept of partnership commensu-rate with

(a) Badeley v. Consolidated Bank (b) Janes v. Whitbread

40. In a partnership at will

44. General duties of partners have been laid down in

49. An agreement in restraint of trade in a partnership under section 11 of the Act is

(b) a statement of duties of the partners in the conduct of the business

51. Section 12(c) of the Indian Partnership Act provides for a

55. An agreement to carry on business in partnership in the future creates a partnership

56. Whether a partnership exists or not is a

58. The minimum number of persons required for a partnership is

64. The members of an illegal partnership

69. Section 13 of the Indian Partnership Act, 1932 is

72. Section 13of the Indian Partnership Act,1932 provides for

(a) partner is not entitled to interest on the capital subscribed by him

78, On the dissolution of the partnernlhip

79. Ordinarily, on the overdrawing by the partners from the firm

(b) interest is chargeable @ 6% p.a.

(c) interest is chargeable @ 9% p.a.

(d) interest is chargeable @ 12"% p.a.

80. A partner has a right to indemnity for the acts

(a) the ordinary & proper conduct of the

(c) both (a) and (b)

(d) only (b) and not (a).

81. The right to indemnity is lost on

(a) the dissolution of the partnership

(b) the death of the partner

(c) the retirement of the partner

(a) indemnity in favour of the partner against the firm

(b) indemnity in avour of the firm against a partner

(c) indemnity in favour of the third parties against the firm

(d) all the above.

83. An action for indemnity against a partner can

(a) the firm only

(b) an individual partner

(c) either (a) or (b)

(d) neither (a) nor (b).

34. What constitutes the property of the firmn has

been dealt with in

(d) section 13.

I5. Section 14 of the Indian Partnership Act, 1932

(d) both (a) and (c).

86. Under section 14 of the Indian Partnership

Act, 1932, the property thrown into

Comm0n stock at the commencement of the

(d) none of the above.

89. The property of the firm includes all property

(a) acquired by or for the firm

(b) for the Purposes or in the course 0f business of the firm