Indian Partnership Act MCQ question and answer

31

A dormant partner is one who is

A) Not interested in the business of the firm B) Not liable to outsider C) Entitled to share profits only D) Neither active nor known to outsiders

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Answer & Solution

Answer: Option D

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32

Minor can be admitted to the benefits of the firm

A) With the consent of all the existing creditors of the firm B) With the consent of all the partners C) With the consent of the guardian of such minor D) All of these

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Answer & Solution

Answer: Option B

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33

A partner cannot contract himself out of which of the following duties?
(1) Duty of utmost good faith, i.e. uberrimae fidei.
(2) Duty of carry on business to greatest common advantage.
(3) Duty to render true accounts and full information.
(4) Duty to indemnify for fraud.
(5) Duty to indemnify for willful neglect.
(6) Duty to properly use the firm's property.

A) (1), (2), (3) and (6) B) (1), (2), (4) and (5) C) (1), (2), (3) and (5) D) (1), (2), (4) and (6)

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Answer & Solution

Answer: Option C

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34

The Indian Partnership Act, 1932 provides for and recognises

A) Partnerships for a specified and fixed period B) Partnerships for a specified and fixed venture C) Both (A) and (B) D) Only (A) and not (B)

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Answer & Solution

Answer: Option C

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35

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

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Answer & Solution

Answer: Option D

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36

Identify the correct statement with respect to the Law of Partnership?

A) Though registration of the Partnership is not mandatory, registration of the Partnership deed is essential B) The Limited Liability Partnership is part of the Indian Partnership Act, 1932 C) The existence of a partnership can only be determined by the partnership deed D) Unless there is a contract to the contrary, death of a partner will automatically lead to the dissolution of the partnership

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Answer & Solution

Answer: Option D

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37

Read Assertion (A) and Reason (R) and answer using given below:
Assertion (A): Partner of an erstwhile unregistered partnership firm can bring a suit to enforce a right arising out of a contract falling within the ambit of Section 69 of the Indian Partnership Act.
Reason (R): Because Judgement in case of Loonkaran Sethia v. Ivan E. John laid down above judicial principle.

A) Both (A) and (R) are correct and (C) is correct reason for (A) B) Both (A) and (R) are wrong C) (A) is right, but (R) is wrong D) (A) is wrong, but (R) is right

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Answer & Solution

Answer: Option B

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38

On dissolution, the business firm which the partners have founded

A) Must necessarily abolish B) May remain and survive C) May carryon business D) Both (B) and (C)

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Answer & Solution

Answer: Option D

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39

A firm is liable to be compulsorily dissolved under Section 41 of the Indian Partnership Act on adjudication of

A) All the partners as insolvents B) All but one of the partners as insolvents C) Either (A) or (B) D) Neither (A) nor (B)

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Answer & Solution

Answer: Option D

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40

Which of the following sections of the Indian Partnership Act bestows every partner with the authority of an agent?

A) Section 17 B) Section 18 C) Section 19 D) Section 20

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Answer & Solution

Answer: Option B

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Indian Partnership Act MCQ question and answer | Law MCQ question