1
When the property is purchased out of the partnership funds but in the name of an individual partner, it
A)
Becomes an estate of the partner
B)
Becomes a joint estate
C)
Is a question of fact to be determined with reference to the intention of the partners
D)
Is a question of law to be decided on legal principles
Answer & Solution
Answer: Option
C
2
In respect of a sum of money given by a partner to the firm, in addition to the capital contributions, is a loan to the business which ranks
A)
Above the outside creditors
B)
Equal to the outside creditors
C)
Lower than the outside creditors
D)
The same as claim of the partners on capital account
Answer & Solution
Answer: Option
C
3
A firm can be held liable for the wrongful act of a partner where the act has been ratified by the partners, provided
A)
The act could be legally done with the authority of the partners
B)
The partners ratify the act with full knowledge of the facts
C)
Neither (A) nor (B)
D)
Both (A) and (B)
Answer & Solution
Answer: Option
D
4
Under section 7 of the Indian Partnership Act, 1932, partnership at will is subject to
A)
One exception
B)
Two exceptions
C)
Three exceptions
D)
Five exceptions
Answer & Solution
Answer: Option
B
5
Section 19(2) of the Indian Partnership Act, 1932 has
A)
Contract between the parties as an exception to the statutory restrictions on the partner's implied authority
B)
Custom or usage of the trade as an exception to the statutory restrictions on the partner's implied authority
C)
Both (A) and (B)
D)
No exception to the statutory restriction on the partner's implied authority
Answer & Solution
Answer: Option
B
6
In which of the following cases a partnership does not exist?
A)
(1), (2) and (3)
B)
(1), (2) and (4)
C)
(2), (3) and (4)
D)
All these
Answer & Solution
Answer: Option
D
7
In the Indian Partnership Act, 1932, a partner has been described as an agent of the firm for the purposes of the business of the firm, under
A)
Section 4
B)
Section 5
C)
Section 18
D)
Section 19
Answer & Solution
Answer: Option
C
8
The members of an illegal partnership
A)
Have a remedy against each other for the partnership dealings and transactions
B)
Have no remedy against each other for the partnership dealings and transactions
C)
Have a remedy against each other for the partnership dealings and transaction only with the permission of the court
D)
Either (A) or (C)
Answer & Solution
Answer: Option
B
9
Sub-section (2) of section 69 of the Indian Partnership Act, 1932 bars
A)
A suit to enforce a right arising from a contract by or on behalf of a firm against any third party in case of unregistered firm
B)
A suit to enforce a right arising from a contract by or on behalf of a firm against any third party irrespective of registration
C)
Does not bar a suit
D)
None of above
Answer & Solution
Answer: Option
A
10
Prior to the Indian Partnership Act, 1932 which came into force from 1st October, 1932 except section 69 which came into force from 1st October, 1933, the law of partnership was provided in
A)
Sale of Goods Act, 1930
B)
Indian Contract Act, 1872
C)
Transfer of Property Act, 1908
D)
English Partnership Act, 1890
Answer & Solution
Answer: Option
B
