1
The partners A, B and C decided to carryon, the business of 'Coal Manufacturing' for a period of five years. However, they continued their partnership business inspite of the completion of 5 years. They
A)
Can continue to run the same partnership
B)
Should dissolve the partnership as the agreed period has expired
C)
Should take permission from the court to continue
D)
None of the above
Answer & Solution
Answer: Option
A
2
A firm is compulsory dissolved
A)
By the adjudication of all the partners or of all the partners but one as insolvent
B)
By the happening of any event which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership
C)
Either (A) or (B)
D)
By the consent of majority of the partners
Answer & Solution
Answer: Option
C
3
Section 51 of the Indian Partnership Act, 1932, does not apply to dissolution of a firm occasioned by
A)
Death of a partner
B)
Adjudication of a partner as insolvent
C)
Notice
D)
Either (A) or (B) or (C)
Answer & Solution
Answer: Option
A
4
The mode of acting on behalf of the firm as prescribed by section 22 of the Indian Partnership Act, 1932 is applicable to
A)
Partners of the firm
B)
Agents of the firm
C)
Manager of the firm
D)
All the above
Answer & Solution
Answer: Option
D
5
Misconduct of a partner is a ground on which the court can order dissolution of a firm, as provided under
A)
Section 44(b) of the Act
B)
Section 44(e) of the Act
C)
Section 44(d) of the Act
D)
Section 44(g) of the Act
Answer & Solution
Answer: Option
B
6
If the partners are equally divided on a issue, the rule is: 'in re communi potior est conditio prohibentis', which means
A)
Those who forbid a change must have their way
B)
Those who do not forbid i.e., in favour of the change, must have their way
C)
The discussion on the issue be deferred for another day
D)
Opinion on the issue be taken from an expert
Answer & Solution
Answer: Option
A
7
Section 24 of the Indian Partnership Act, 1932, in its operation applies to
A)
Partners only
B)
Agents of the firm
C)
Managers of the firm
D)
All the above
Answer & Solution
Answer: Option
A
8
The loan(s) advanced to the business by a partner, in the event of settlement of accounts under section 48 of the Indian Partnership Act, 1932, rank
A)
Above the claim of the partners on capital account
B)
Lower than the claims of the partners on capital account
C)
Equal to the claim of the partners on capital account
D)
Equal to the claim of the outside creditors
Answer & Solution
Answer: Option
A
9
For an act to be covered within the implied authority of the partner, it is necessary that
A)
The act should be done in relation to the partnership business
B)
The act should be done in usual way, in relation to a business
C)
Both (A) and (B)
D)
Either (A) or (B)
Answer & Solution
Answer: Option
C
10
The historic case laying down the test for determining the existence of partnership is
A)
Grave v. Smith
B)
Waugh v. Carver
C)
Bloream v. Pell
D)
Cox v. Hickman
Answer & Solution
Answer: Option
D
