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 max.no. 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’.