1
Section 25 of the Indian Partnership Act, 1932, provides for
A)
Liability of the firm for the acts of a partner
B)
Liability of a partner for the acts of the firm
C)
Liability of the firm for the wrongful acts of a partner
D)
Rights of a partner
Answer & Solution
Answer: Option
B
2
Where a partner is entitled to interest on the capital subscribed, such interest is payable
A)
Out of profits only
B)
Out of capital if no profits
C)
Out of capital if losses
D)
Either (A) or (B) or (C)
Answer & Solution
Answer: Option
A
3
Section 44(g) of the Indian Partnership Act, 1932, is to be regarded as
A)
Independent of section 44(a) to 44(f) of the Act
B)
Ejusdem generis with sections 44(a) to 44(f) of the Act
C)
Either (A) or (B)
D)
Only (A) and not (B)
Answer & Solution
Answer: Option
D
4
Which of the following suits can be maintained by one partner against the other partner during the subsistence of partnership without praying for dissolution
A)
Suit in respect of any transaction which forms an item of the partnership account
B)
Suit for money lent by him to a firm of which he is a member
C)
Suit for contributions in respect of moneys borrowed by him under an express agreement with them for the purposes of partnership
D)
All the above
Answer & Solution
Answer: Option
C
5
Which of the following rights is not available to the transferee of a partners' interest in the firm
A)
To interfere in the conduct of business
B)
To receive the profits which fall to the share of the transferring partner
C)
Both (A) and (B)
D)
Neither (A) nor (B)
Answer & Solution
Answer: Option
A
6
Which of the following is not correct about a minor?
A)
He cannot become a partner
B)
He can be admitted to the benefits of partnership
C)
He is personally liable for the acts of the firm
D)
He can elect to become or not to become a partner on attaining the majority
Answer & Solution
Answer: Option
C
7
Under section 49 of the Indian Partnership Act, 1932
A)
The partnership property can be applied for payment of separate debts of a partner
B)
The share of the partner in the partnership property can be applied for payment of separate debts of a partner
C)
The share of the partner in the partnership property, after payment of firm debts, shall be applied for payment of separate debts of a partner
D)
The share of the partner in the partnership property, after the payment of firm debts, shall not be paid to the partner if there are separate debts of the partner
Answer & Solution
Answer: Option
C
8
Which of the following cases recognized the rule of vicarious liability of the firm for the wrongful acts or omissions of the partner done in the ordinary course of business.
A)
Lloyd v. Grace Smith & co.
B)
Cox v. Hickman
C)
Sadler v. Lee
D)
Bentley v. Craven
Answer & Solution
Answer: Option
A
9
A person is liable as a partner of a firm, on the principle of holding out, where he
A)
Declares himself to be a partner of the firm
B)
Represents himself to be a partner of the firm
C)
Knowingly permits others to represent him as a partner in the firm
D)
Either (A) or (B) or (C)
Answer & Solution
Answer: Option
B
10
In a 'Partnership will'
A)
No provision is made by contract between partners for the duration of their partnership
B)
No provision is made by contract between the partners for the determination of the partnership
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
C
