The Indian Partnership Act, 1932

The Indian Partnership Act, 1932

Multiple choice questions of Subject Judiciary Topic The Indian Partnership Act, 1932 MCQs ( The Indian Partnership Act, 1932 Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

The Indian Partnership Act, 1932 and 2013 Bare Act MCQs

1. Persons who have entered into partnership ‘with one another are called

(a) Individually Partners

(b) Collectively Partners

(c) Not Partners

(d) None of the above

Ans. a

2. Persons who have entered into partnership with one another are called  individually partners and collectively a

(a) firm

(b) company

(c) corporation

(d) none of the above

Ans. a

3. The relations of partnership arises from

(a) Contract

(b) Status

(c ) Agreement

(d) None of the above

Ans. a

4. The members of a Hindu undivided family carrying on a family are

(a) Partners

(b) Not Partners

(c) Family Partners

(d) None of the above

Ans. b

5. Similarly, a Burmese Budhist husband and wife carrying on a family business

(a) Partners

(b) Not Partners

(c) Co-partners

(d) None of the above

Ans. b

7. Where a partnership is for a particular adventures or undertakings, the same is called

a) Partnership at will

b) Particular partnership

 c) Optional partnership

d) None of the above

Ans. b

8. The property of the firm includes

a) goodwill of the business

 b) does not include goodwill of the business

c) None of the firm.

d) None of the above

Ans. a

9. Partner is the agent of the firm

a) Yes

b) No

Ans. a

10. Every partner Is liable for all acts of the firm done while he is a partner

a) Jointly with all other partners

b) severally with all other partners

c) (a) & (b)

d) None of the above

Ans. c

Indian Partnership Firm MCQs

11. For the wrongful act or omission of a partner action in the original course of the business of a firm, or with the authority of his partners, loss or injury is caused to any third party. or any penalty is incurred the

a) Ann is liable to the same extent as the partner

b) only Arm is liable

c) has total liability

d) None of the above

Ans. a

12. Firm is liable for misapplication by partners where

a) a partner acting within his apparent authority receives money or property from a third party and misapplies it

b) a Ann in the course of its business receives money or property from a third party. and the money or property is misapplied by any of the partners while it is in the custody of the firm

c) (a) & (b)

d) None of the above

Ans. c

13. person Is liable as a partner of the firm on the principle of ‘Holding hat’ where he

a) represents himself to be partner of the firm

b) discloses himself to be partner of the firm

(c) intentionally promises others to represent him as partner in the firm

(d) Either (a) or (b) or (c)

Ans. d

14. The doctrine of ‘Holding Out’ is based on the principle of

(a) estoppal

(b) equity

(c) agency

(d) none of the above

Ans. a

15. Under the doctrine of ‘Holding Out’, a person who has represented himself to be a partner In the firm and on the faith of any such representation, the credit has been given to the firm it is immaterial

 (a) Whether the person representing himself or represented to be a partner does or does not know

(b) that the representation has reached the person so giving credit

(c) (a) & (b)

(d) None of the above

Ans. c

16. A minor cannot be a partner in a firm, but with the consent of all the partners, be may be admitted

(a) to the benefits of partnership

(b) to the partnership as a full rigged partner

(C) cannot be admitted to die partnership for want of free to contract

(d) both (a) & (b)

Ans. a

17. A minor can he admitted to the benefits of partnership

(a) with the consent of all the partners

(b) with the majority decision of partners

(c) without the consent of the partners by any of the partner

(d) by the managing partner lit.

Ans. a

18. A minor admitted to the benefits as agreed upon

(a) has a right to such share of property and of the profits of the firm

(b) have access to and inspect

(c) can copy any of the accounts of the firm

(d) none of the above

Ans. d

19. A minor admitted to the benefits of a firm has a right to

(a) share of the property and of the profits of the firm

(b) have access to and inspect and can copy any of the accounts of the firm

(c) both(a) & (b)

(d) none of the above

Ans. c

20. The liability of a minor admitted to the benefits of partners for the acts of the firm is

(a) personal

(b) personal and his share in the firm

(c) his share in the firm

(d) none of the above

Ans. c

21. When a minor who was admitted to the benefits of partnership severs his status with that firm, minor has no right to sue

(a) for accounts and his share

(b) for dissolution of the firm

(c) (a) & (b)

(d) none of the above

Ans. b

22. A minor who has been admitted to the benefits of partnership may come to give notice that he is elected to become or that he is elected not to become a partner in the firm at any time

(a) within six months of his attaining majority

(b) or of his attaining knowledge whichever date is later

(c) (a) & (b)

(d) None of the above

Ans. c

23.The option to stay or to leave partnership by a minor on attaining the age of majority can be exercised

(a) by giving a public notice

(b) by giving a notice to the adult partner

(c) by giving notice to the managing partner

(d) none of the above

Ans. b

24. If a minor admitted to the benefit of partnership in a firm fails to give public notice of his intention to become or not to become a partner within six months, he

(a) automatically becomes partner after expiry of said six months

(b) automatically seizes to be partner after the expiry of six months

(c) becomes a partner in the firm after expiry of six months with the consent of all other partners

(d) None of the above

Ans. a

25. Where a minor has been admitted to the benefits of a partnership in a firm, the burden of proving the fact that such person had no knowledge of such admission until a particular date after expiry of six months of his attaining majority shall lie

(a) on the person. asserting that fact

(b) on all the partners

(c) on managing partner

(d) None of the above

Ans. a

26. Where a minor elects to become a partner on attaining majority, his rights liability in the firm as a minor

(a) relate back to the date when he was admitted to the benefits of firm

(b) relate back to the date of his attaining majority

(c) shall commence from the date which is exercising upon by giving public notice

(d) None of the above

Ans. a

27. On becoming a partner on attaining majority by a minor who was admitted to the benefits of a firm, is personally liable towards third party for the acts of the firm commences from

(a) date of majority

(b) date of exercising upon

(c) date of admission to the benefits of the firm

(d) none of the above

Ans. c

28. When a minor becomes a partner in the firm, his share in the property and firm shall

(a) remain the same to which he was entitled as a minor

(b) equal with other partners

(c) lower than the other partners

(d) none of the above

Ans. a

29. Where a minor who was admitted to the benefits of partnership elects not to become a partner

(a) his rights and liability shall continue to be those of a minor under this section unto the date on which he gives public notice

(b) his share shall not be liable for any acts of the firm done after the day of notice

(c) he shall he entitled to sue the partners for his share of the property and profits in accordance with subsection

(d) all the above

Ans. d

30. 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

Ans. d

31. A retiring partner may he discharged from any liability to any third party for acts of the firm done before his retirement

(a) by an agreement made by him with such third party

(b) with the partners of the reconstituted firm

(c) (a) & (b)

(d) None

Ans. c

32. Retirement of a partner from a firm does not escape the liability partner or firm unless

(a) a notice is given of the retirement

(b) public notice is not given for the retirement

(c) neither a nor b

(d) none of the above

Ans. b

33. Notice of retirement of a partner may be given

a) by the retired partner

b) by any panner of the reconstituted firm

c) (a) & (b)

d) None of the above

Ans. c

34. An outgoing partner, subject to the contract to the contrary may not

a) use the firm name

b) represent himself us carrying on the business of the firm

c) solicit the custom of persons who were dealing with the firm before he ceased to be a partner

d) all the above

Ans. d

35. The dissolution of partnership between all the partners of a firm is called

a) dissolution of a firm

b) dissolution of status

c) dissolution of membership

d) none of the above

Ans. a

36. A firm may be dissolved

a) with the consent of all the partners

b) in accordance with the contract between the partners

c) (a) & (b)

d) none of the above

Ans. b

37. A firm may be compulsorily dissolved

a) by the adjudication of all the partners or of all the partners but one can insolvent

b) by the happening of any event which makes it unlawful for the business of the fine to be carried on or for the partners to can it on in partnership

c) (a) & (b)

d) none of the above

Ans. c

38. A firm may be dissolved on the happening of these contingencies

a) if constituted for a fixed term, by the expiry of that term

b) if constituted to carry out one or more adventures or undertakings by the completion thereof

c) by the death of a partner and by the adjudication of a partner as an insolvent

d) All the above

Ans. d

39. Where the partnership is at Will, the firm may be dissolved by any partner giving notice in writing or his Intention to dissolve the firm

a) to all the other partners

b) to any one of them

c) to the managing partner

d) none of the above

Ans. a

40. The firm is dissolved from the date mentioned in the notice

(a) as the date of dissolution

(b) if no date is mentioned from the date of communication of the notice

(c) (a) & (b)

(d) none of the above

Ans. c

41. The court can dissolve the firm on any of the grounds that

(a) the partner has become of unsound mind

(b) the partner other than the partner suing. is guilty of conduct which is b to affect prejudicially the carrying on of the business, regard being had to the nature of the business and wilfully or persistently commits breach of agreements relating to the management of the affairs of the fir= the conduct of its business , or otherwise so conducts himself in matters relating to the business that it is not reasonably practicable for the cc partners to carry on the business in partnership with him

(c) that a partner, other than the gonna suing has in any way transience whole of his interest in the firm to a third patty, or has allowed his to be charged under the provisions of rule 49 of Order 21 of the F Schedule to the Code of Civil Procedure, 1908 (5 of 1908) or has it to be sold in the recovery of arrears of land revenue or of an) a recoverable as arrears of land revenue due by the partner

(d) all the above

Ans. d

42. A suit to enforcement a right arising out of a contract of a partner apeS the firm can be instituted unless

(a) the firm is registered

(b) the firm is unregistered

(c) the firm is solvent

(d) none of the above

Ans. a

43. A suit for enforcement of u right arising out of a contract against party can he instituted by

(a) an unregistered finn

(b) a registered firm

(e) a partner of a finn

(d) none of the above

Ans. b

44. The bar of section 69(2) of the Indian Partnership Act, 1932 applies with the right which is sought to he enforced arises from

(a) a contract

(b) conferred by the Act

(c) (a) & (b)

(d) none of the above

Ans. c

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