Indian Partnership Act MCQ question and answer

41

Effect of admissions by a partner, has been dealt with under

A) Section 23 of the Act B) Section 22 of the Act C) Section 21 of the Act D) Section 24 of the Act

Discuss

Answer & Solution

Answer: Option A

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42

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 B) Transactions already made as the revocation shall relate back to the date of guarantee C) Transactions already made as well as future transactions D) Neither (A) nor (B) but only (C)

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Answer & Solution

Answer: Option A

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43

A' and 'B', two members of a three member partnership firm, bring a suit for recovery of the debt due from 'X' to the firm, but their firm is not registered on the date of the institution of the suit. The suit

A) Is maintainable with leave of the court B) Is maintainable with the concurrence of 'X' C) Is liable to be rejected in view of section 69, Partnership Act D) Will become maintainable after the original defect is cured by subsequent registration

Discuss

Answer & Solution

Answer: Option C

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44

The scheme of settlement of account of a firm 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 D) Either (A) or (B)

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Answer & Solution

Answer: Option B

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45

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 partnership affairs C) Where the partner has abandoned his rights and obligations under the partnership D) All the above

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Answer & Solution

Answer: Option D

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46

Upon the coming into force of the Limited Liability Partnership Act, 2008:

A) The Indian Partnership Act, 1932 stands repealed B) The provisions of the Indian Partnership Act, 1932 ipso facto apply to Limited Liability Partnership (LLPs) also C) Both the Acts co-exist but the provisions of the Indian Partnership Act, 1932 are not applicable to LLPs save as otherwise provided D) The Limited Liability Partnership Act, 2008 is applicable to only metropolitan cities as defined therein and the Indian Partnership Act, 1932 continues to apply to the rest of the country

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Answer & Solution

Answer: Option C

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47

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 relate back to the date of his attaining majority irrespective of the date on which he exercised the option B) Shall relate back to the date when he was admitted to the benefits of the firm C) Shall commence from the date of his exercising the option by giving the public notice D) Shall commence from the date as decided by all the partners

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Answer & Solution

Answer: Option B

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48

Which of the following is not a true statement regarding minor's admission to partnership in a firm?

A) A minor may be admitted to the benefits of partnership with the consent of majority of partners B) A minor may be admitted to the benefits of partnership with the consent of all the partners C) A minor is not personally liable for any act of the firm D) A minor has a right to such profits as agreed upon

Discuss

Answer & Solution

Answer: Option A

Solution:

Option A: A minor may be admitted to the benefits of partnership with the consent of majority of partners Explanation in HTML format: According to the Indian Partnership Act, 1932, a minor cannot become a full partner in a firm, but can be admitted to the benefits of partnership.

Section 30 of the Act states that a minor may be admitted to the benefits of partnership only with the consent of all the partners, not just the majority.

Hence, Option A is incorrect because it wrongly states that majority consent is sufficient.

Option B is correct because unanimous consent is required.

Option C is correct because a minor is not personally liable for the debts of the firm.

Option D is also correct as the minor is entitled to receive only the share of profits as agreed upon.

Therefore, the correct answer is Option A.

49

For retirement of partners . . . . . . . is necessary

A) Public notice B) Dissolution of partnership C) Non-existence of firm D) None of the above

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Answer & Solution

Answer: Option A

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50

Z and W are partners in a stationery business. Z orders on the firm's letter head to supply two bags of wheat at his residence. What will be the liability of the firm under the Indian Partnership Act, 1932?

A) The firm is not liable to pay the debt B) The firm is liable to pay the debt C) The firm is liable only for half of the debt D) None of the above

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Answer & Solution

Answer: Option A

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Indian Partnership Act MCQ question and answer | Law MCQ question