Indian Partnership Act MCQ question and answer

91

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)

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Answer & Solution

Answer: Option B

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92

Match List I with List II and select the correct answer using the given below:

List I (Duties of partners)	List II (Relevant section under the Indian Partnership Act)
a. Duty of absolute good faith	1. Section 16(b)
b. Duty not to compete	2. Section 12(b) and 13(f)
c. Duty of due diligence	3. Section 10
d. Duty to indemnify for fraud	4. Section 9

A) a-1, b-4, c-2, d-3 B) a-4, b-1, c-2, d-3 C) a-4, b-1, c-3, d-2 D) a-2, b-3, c-1, d-4

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Answer & Solution

Answer: Option B

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93

Under the Indian Partnership Act, 1932, where the partnership is at will, the firm may be dissolved by any partner by giving notice in writing of his intention to:

A) All the other partners B) Majority of the other partners C) Anyone of the other partners D) The registrar of firms

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Answer & Solution

Answer: Option A

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94

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 fdissolution D) None of above

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Answer & Solution

Answer: Option A

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95

Who is a dormant partner?

A) He is known to outsiders as a partner but does not take part in the management B) He is not known to outsiders as a partner, does not take part in the management C) He is known to outsiders as a partner and takes part in the management D) He is not known to outsiders as a partner but takes part in the management

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Answer & Solution

Answer: Option B

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96

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) D) Only (A) and not (B)

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Answer & Solution

Answer: Option C

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97

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) Cox v. Hickman C) Re: Stanton Iron Co. D) Grace v. Smith

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Answer: Option B

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98

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 D) Either (A) or (B)

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Answer: Option C

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99

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 partnership D) Either (A) or (B) or (C)

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Answer & Solution

Answer: Option A

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100

According to Section 31 of the Act, a new partner can be introduced into an existing firm

A) With the consent of all the existing partners B) With the consent of majority of the partners C) Any partner can introduce any person as new partner without the consent of other partners D) Either (A) or (B)

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Answer & Solution

Answer: Option A

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Indian Partnership Act MCQ question and answer | Law MCQ question