Mercantile Law - The Partnership Act, 1932
Exam Duration: 45 Mins Total Questions : 30
The term "Act of a Firm", means an act or omission by .................. , which gives rise to a right enforceable by or against the Firm
- (a)
all the Partners
- (b)
any Partner
- (c)
agent of the Firm
- (d)
any of the above
The unrepealed provisions of the ............. Act shall continue to apply to Firms, save insofar as they are inconsistent with the express provisions of the Partnership Act.
- (a)
Transfer of Property Act
- (b)
Indian Evidence Act
- (c)
Indian Contract Act
- (d)
Sale of Goods Act
Section .......... of the Partnership Act, defines the term "Firm Name", "Partner" and "Firm".
- (a)
3
- (b)
4
- (c)
5
- (d)
6
M, is employed by PQR Bros., a Partnership Firm. M is entitled to remuneration of Rs.40,000 p.m. plus 12% on the Profits of the Firm, if profits exceed Rs.10 Lakhs. Here-
- (a)
M is not deemed as a Partner in the Firm
- (b)
M is deemed as a Partner in the Firm
- (c)
The appointment of M is invalid
- (d)
M can claim only Rs.40,000 p.m. but not share of profits
A particular Partnership-
- (a)
Is void-ab-initio
- (b)
Is voidable at the instance of the Creditor
- (c)
Will stand dissolved when the adventure is completed
- (d)
Should be entered into only between two persons
A change in nature of business can be effected only based on
- (a)
Unanimous consent of all the Partners
- (b)
Consent of majority Partners
- (c)
Consent of the Working Partners
- (d)
Consent of Sleeping Partners.
Every Partner shall indemnify the Firm for any loss caused to it by his fraud in the conduct of the Firm's business. However, the Parties may agree that some Partners need not indemnify the Firm.
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above
Which of the following is not covered by the term "Property of the Firm'?
- (a)
Property and rights and interest in property originally brought into the stock of the Firm
- (b)
Property acquired by or for the Firm
- (c)
Goodwill of the business
- (d)
Property of the Partners.
A induces B to believe that he (A) is a Partner of a Firm PQ & Co. B believing that A is a Partner, gives c;e itto PQ & Co. What is A's liability?
- (a)
A is liable to compensate B
- (b)
A can plead innocence saying that he is not a Partner of PQ & Co.
- (c)
A can require B to give credit to him (A) and not the Firm
- (d)
A is liable to PQ & Co.
A Partnership deed provides that the minor were to share the profits and losses, such a document is -
- (a)
Valid
- (b)
Invalid
- (c)
Valid to the extent of profit sharing but not loss sharing
- (d)
Valid to the extent of loss sharing and not profit sharing.
Retiring Partner continues to be liable for acts of the Firm done-
- (a)
upto the date of admission of a new Partner
- (b)
upto the date of giving public notice of retirement
- (c)
upto the close of the financial year in whid1 he retires
- (d)
all of the above
The third party deals with the Firm without knowledge that Sri.Raman has retired from the Firm, in such a case, Sri.Raman -
- (a)
Is not liable to the third parties
- (b)
Is liable to the third parties
- (c)
Is liable to the Firm
- (d)
Is liable to the continuing Partners.
When a Partner is expelled otherwise than in good faith, it is-
- (a)
generally valid
- (b)
valid vis-a-vis third parties
- (c)
in restraint of trade
- (d)
null and void.
In case of invalid expulsion of a Partner, the Firm automatically gets dissolved
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above.
Where the continuing Partners carry on the business of the Firm, the Outgoing Partner is entitled to share of profits or interest. For this purpose, the condition is that -
- (a)
The Partner must not have been expelled
- (b)
No new Partner must not have been admitted
- (c)
Final Settlement of accounts has not been done between the Firm & Outgoing Partner
- (d)
There is a change in the nature of the Firm's business
Dissolution agreement u/s 40, can be -
- (a)
in a express form i.e. written document
- (b)
implied from conduct of the parties
- (c)
both (a) and (b)
- (d)
either (a) or (b)
Where more than one separate adventure or undertaking is carried on by the Firm, the illegality of one or more shall cause the automatic / compulsory dissolution of the Firm in respect of all its lawful adventures and undertakings.
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above.
Partners of a Particular Partnership for carrying out specific adventures or undertakings cannot continue the Firm after completion of those adventures or undertakings. The Firm is compulsorily dissolved.
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above.
A & B are Partners in a Firm. A has adulterous relations with B's wife. This is a sufficient ground for the compulsory dissolution of the Firm on grounds of misconduct by Partner.
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above.
The Court may dissolve a Firm if a Partner wilfully and persistently commits breach of agreements relating to management of the affairs of the Firm or the conduct of the Firm's business.
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above.
After dissolution, the person who has represented himself or knowingly permitted himself to be represented as a Partner of the insolvent, after the adjudication, will be liable for the insolvent's acts.
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above.
In case of Joint Debts due from Firm and also separate debts due from Partners, the separate property of the Partners shall be applied first -
- (a)
to pay the Firm's debts
- (b)
to pay the separate debts of the Partners
- (c)
both (a) and (b) on pro-rata basis
- (d)
(a) or (b) whichever is lower.
Outgoing Partner agrees not to carry on similar business for a specified period or within the specific local limits. This agreement in restraint of trade is -
- (a)
Valid
- (b)
Invalid
- (c)
Voidable
- (d)
Wholly void.
If X,Y,Z are partners and Z is murdered by 'W'. W comes with a proposal to enter into partnership and Y objects. What is the situation?
- (a)
Estate of 'w' is liable after 'Z's death
- (b)
W is liable after 'Z's death
- (c)
Z's estate is liable for the debts before his death
- (d)
Z's estate is not liable for the debts after his death
Sec .............. deals with Sale of Goodwill after Dissolution of Firm.
- (a)
52
- (b)
53
- (c)
54
- (d)
55
Which of the following words are not permissible in a Firm's name?
- (a)
Associates
- (b)
& Co.
- (c)
& Brothers
- (d)
Corporation.
An unregistered firm is not a?
- (a)
A Legal association
- (b)
An Illegal association
- (c)
An Association of person
- (d)
None of the above
A Partner of an Unregistered Firm can sue the Firm or any other Partner of the Firm to enforce a right arising from a contract or a right conferred by the Partnership Act.
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above.
Penalty for furnishing false particulars to the Registrar of Firms is dealt with u/s ................ of the Partnership Act, 1932.
- (a)
70
- (b)
71
- (c)
72
- (d)
73
Notice to Registrar of Firms constitutes sufficient Public Notice, in case of Registered Firms.
- (a)
True
- (b)
Partly True
- (c)
False
- (d)
None of the above.