Practice Test

1) The most important element in partnership is :

2) The provision about the maximum number of partners is mentioned in

3) A minor is

4) A partnership at will is one

5) Active partner is one who

6) Each partner is

7) Death of partner has effected of

8) After retirement from firm ,which of the following partners is not liable by holding out even if the public notice of retirement is not given?

9) Suppose you have entered into a partnership agreement with me & the partnership deed provides neither for the duration nor the determination of our partnership. What is the technical expression for this kind of partnership

10) The position of a minor in a partnership firm is to be determined taking into account 1.The Indian Contract Act , 1872 , 2.The Indian Partnership Act , 1932 , 3.Minor's agreement ,4.The Majority Act ,1875

11) Which of the following is not an essential feature of partnership ? 1.Agreement , 2. Registration .3. Test of mutual Agency , 4.Seperate legal entity

12) X agrees with Y to carry passengers by taxi from Delhi to Goa on the following terms , namely , Y is to pay X Rs.100 per mile per annum , & X & Y are to share cost of repairing & replacement of the cars & to divide equally between them the proceeds of fares received from passengers.Choose the correct alternative

13) X agrees with Y who is a goldsmith to buy and furnish gold to Y ,to be worked up by him & sold ,& that they shall share in the resulting profit or loss .The contract between X & Y is that of

14) No duration for partnership

15) Duration for period

16) When partner of a firm agrees to Share his own share of profits with an outsider,it is called.

17) Partnership

18) Co-ownership

19) Hindu-Undivided Family

20) Company

21) Partnership business carried on by all or by any of them acting for all

22) Sharing of profits

23) Full Fledged partner

24) Sleeping Partner

25) Partner by holding out

26) Partner to benefits of partnership

27) Actual partner

28) Sleeping Partner

29) Nominal partner

30) Sub-partner

31) Number of partners exceed 50

32) Mutual agency

33) Partnership for specific venture

34) Two or more members

35) Partnership is a legal relationship

36) Law of partnership is an extension

37) The Indian partnership Act came into force on

38) The Indian partnership act ,1932 extends to

39) Which law governs the partnership business in India

40) The Indian partnership act ,1932 deals with

41) Act of a firm' means

42) According to Partnership act "Business" includes

43) Prescribed' under the partnership act means

44) Expression used but not defines on the partnership act & defined in the Indian contract act ,1872

45) In any partnership business ,maximum number of partners in case of non-banking business is

46) Identify the correct statement

47) The law relating to partnership firms is contained in

48) Minimum number of persons to carry on partnership business is

49) Partnership means

50) Persons who have entered into partnership with one another are called individually

51) A partner may be

52) The essence of partnership is

53) Partnership arises

54) A partnership agreement may be

55) Point out the odd in regards to partnership

56) Point out who may not be a partner

57) Who can contract for a partnership ?

58) A partnership agreement between person arises from

59) In case of business other than banking

60) Whether a group of person is not a firm shall be determined

61) Whether a person is or not a partner in a firm shall be determined

62) Receipt by a person of a share of the profits of a business

63) Sharing of profits or gross returns arising from property by person holding a joint or common interest in that property

64) Receipt by a person of the following in a business does not make him partner

65) Particular partnership means

66) The essential feature of partnership is

67) A partnership is 'partnership at will'

68) 'Partnership' has been defined in section

69) 'Firm name' has been defined in section

70) 'Business' has been defined in section

71) Agreement between partners is one of the essence elements of

72) In partnership an agreement to share profits implies

73) The true test of partnership is

74) A partner is

75) Any one who by words spoken or written or by conduct represents himself to be a partner in a firm ,is called

76) The partnership Act extends to the whole of India except the state of

77) Section ______of the partnership Act ,1932 defines the term 'Third Party'

78) A & B enter into a joint trading adventure for sale of sesame seeds grown in both their fields during its harvest season .The partnership comes to an end after the sales. this agreement is called

79) Where a partnership agreement provides neither for the duration nor for the determination of or particular object the partnership it is called

80) Are the members of a Hindu undivided family carrying on a family business as such ,partner in such business

81) X & Y buy 200 bales of cotton ,agreeing to share the same between them. There is a valid partnership between X & Y

82) Which is not a characteristics of partnership firms?

83) Subject to the provision of the act ,the partner is in agent of the firm for

84) A valid partnership can be formed with one major partner & other minor admitted only to the benefits of the firm

85) P,Q & R are partners ,R is a sleeping partner who has not been known by creditors to be partner of P & Q ,R retires without giving public notice of his retirement .Is R liable for subsequent debts incurred by P & Q ?

86) For an effective notice on the firm,it must be made to

87) Sharing of profits is ______ of partnership

88) Which of the following words are not permissible in a firm's name ?

89) The of persons permissible for a valid partnership for doing any business other than banking business is

90) Where the number of partners exceeds the maximum limit, the illegal association cannot be used

91) R & K were partners in a business as suppliers of leather goods & were regular contractors to govt.K ,without knowledge of R ,supplied to govt.certain leather goods in which the firm was also dealing & made substantial profits

92) X & Y purchase 10,000 bags of cement which they agree to sell for their joint a/c & share the profits thereof. there is a valid partnership between x & y

93) X & Y are joint ownership .There is a valid partnership between X & Y

94) Third party' under in relation to a firm or to a partner means

95) A money lender getting a share in the profits of the firm for the sum lent is a partner in the firm.

96) Sharing of profits of a business is conclusive evidence of partnership.

97) A partner, whether active or dormant, is entitled to have access to any of the books of the firm and take out a copy thereof.

98) Sharing of profits is conclusive evidence of partnership.

99) Where two persons jointly run a coach and share the profits derived from running such business constitute partnership business?

100) A partnership may be formed with two partnership firms as partners.

101) The test of existence of partnership is the element of ‘sharing of profits’ rather than ‘mutual agency’.