Practice Test

1) Which of the following is true , about minor partner's position

2) Which of the following is not true , about minor partner's position ; 1.He cannot become a partner in a new firm , 2 . He can become a partner in a existing firm , 3. He can become a partner on becoming majority , 4 . He has to bear all the liabilities

3) Expulsion of partner

4) On attaining majority if a minor elects to become partner, he will be liable for the debts of the firm

5) The liabilities of a minor in a partnership

6) Partner by holding out' is explained in section

7) With the powers conferred by contract between the partners ,majority of the partner

8) A minor with the consent of all the partners for the time being

9) Any difference arising as to ordinary matters connected with the business may be decided by

10) In absence of any agreement a partner are entitled to share the profits

11) A partner of a firm by providing the partnership deed

12) When no specific provision is provided in the partnership deed ,the partner

13) When no specific provision is provided in the partnership deed ,the firm

14) A partner shall pay to the firm any profit derived by him

15) A partner shall pay to the firm any profit made by him

16) A person may be admitted to a firm

17) A minor

18) In case of partnership at will a partner is

19) A partner is liable for all acts of the firm done while he is a partner

20) The rule of estoppels implies that a person who holds himself out to be partner

21) Does the assignees of a partner's interest by sale, mortgage or otherwise enjoy the same rights & privileges as the original partner ?

22) Every partner cannot participate in the conduct of the business

23) A partner who receives certain remuneration from the firm as per the express agreement ,becomes an employee of the firm

24) Which of the following statements is incorrect when the minor elects not to become a partner ?

25) Partners are bound to carry on the business of the firm

26) Which of the following partners are not liable in relation to the firm ?

27) It is the duty of every partner to share in equal proportion the losses suffered by the firm

28) On attaining majority, which statement is correct ?

29) Every partner is bound to attend ____to his duties ,in the conduct of the business

30) Identify the correct sentence

31) Minor can become a partner in an existing firm

32) Duty of partner

33) In absence of any agreement a partner for taking part in conduct of the business is

34) Every partner has a right

35) A partner can be expelled if------------

36) Which of the following is not the right of a partner ?

37) Which of the following acts are not included in the implied authority of a partner

38) X and Y purchase 10,000 bags of cement ,which they agree to sell for their joint account .The relation between X and Y is

39) X and Y agrees to work together as carpenters but X shall receive all profit & shall pay wages to Y .The relation between X & Y is that

40) Firm is bound by all acts of a partner done within the scope

41) Implied Authority of partner

42) Statutory restriction

43) The relation between the partners is

44) Where any partner or his representative has brought amount for the goodwill of the firm ,he

45) The implied authority of any partner in a firm

46) A new partner is liable for all acts of the firm

47) The duties of a partner are

48) Every partner shall indemnify the firm

49) The mutual rights & duties of the partner of a firm may be determined

50) The nature of the business may be changed by consent of ------------

51) Property of the firm shall be held & used by the partners

52) Subject to contract between the partners , the property of the firm includes

53) The implied authority of any partner does not empower him

54) The implied authority of any partner does not empower him

55) Any act done by a partner on behalf of the firm within his implied authority

56) In an emergency a partner shall do

57) In order to bind a firm ,an act or instrument done or executed by a partner

58) A notice binds the firm if

59) Every partner is liable for all the acts of the firm

60) Where any wrong act or omission is done by a partner

61) A, a partner in a firm transferred his interest by creation of a charge on such interest

62) A,a partner in a firm transferred his interest by creation of a charge on such interest

63) Interest on capital is payable only out of

64) Which of this falls outside the implied authority ?

65) Z ,a partner of a firm dealing in readymade garments places an order for liquor worth Rs,50,000 in the firm's name .Can the principle of Z's implied authority be invoked here?

66) Section 53 prohibits partners from carrying on similar business in their own name ,till the affairs of the firm are completely wound up

67) For loss caused to the firm by his fraud in the conduct of the business , partner shall

68) Goodwill is the property of the firm ,& like any other property it belongs proportionately to all the partners

69) The liability of a new partner generally commences from

70) In which of the following cases ,a partner is not required to pay over the profits to the firm

71) A & B are partners in a firm dealing in cloth .A placed an order in the firm 's name & on the firm's letter pad for 10 bags of wheat to be supplied at his residence

72) when the person makes advances to the firm over & above the amount of capital to be contributed by him can he claim interest thereon ?

73) In case of an emergency a partner has the authority to do all such acts so as to protect the firm from loss as would be done by _____under similar condition

74) liability of a partner is

75) Can a share in a partnership be transferred like any other property ?

76) An unregistered firm can enforce by the suit its due from a third party

77) Which of the following is not an 'usual activity ' for a trading concern ,for implied authority purpose ?

78) The mutual rights and duties of partners are governed

79) Which of the following statements is correct?

80) A partner has a right to _____ for the acts done in emergency

81) Every partner has the right to

82) Interest on capital subscribed by a partner may be provided for in the partnership deed

83) The interest to partners on their capital should be provided only out of

84) Unless otherwise agreed, a partner

85) Unless otherwise agreed, every partner must account for and pay all profits earned by him

86) A firm, in the course of its business, receives money from a third party. If one of the partners misapplies it, then

87) _____ duties cannot be altered

88) The firm is entitled/liable ______ made by a partner in a competing business

89) _____ is liable to a third person for the willful neglect or fraud of partner

90) Any profit earned without the consent of partners and by using the property of the firm, then such profit

91) _________ duties are those which depend upon agreement between the partners

92) A partner cannot transfer his______

93) Implied authority means the capacity of a partner to bind

94) A partner of a trading firm has implied authority to

95) _______ is included in the implied authority of a partner.

96) Which of the following is under the implied authority of a partner in a firm?

97) Authority of a partner can be

98) The firm is liable to third partied for wrongful acts, only if it is done

99) Implied authority of partner overs

100) In case of _____ a partner has the authority to do all such acts as to protect the firm from loss

101) Which of the following is correct?

102) A partner's authority in an emergency

103) For all acts of the firm done while he is partner every partner is

104) Implied authority of a partner is subject to

105) To bind the firm, an act done by a partner on behalf of the firm shall be done

106) For the acts of the firm, every partner is jointly and severally liable, if the acts are done

107) Partner shall indemnify the firm for any loss caused to it by ____ in the conduct of firm's business

108) In case of change in constitution of the firm, the continuing guarantee given to the firm or the third party respect to the transaction of the firm

109) A partner shall account for and pay all profit to the firm, as is derived from a business which is

110) When the minor elects not to become a partner he is entitled to sue the partners for his share in the profits and property

111) A minor admitted to the benefits of the partnership

112) If a person fails to give public notice of his becoming major

113) A partner may retire from the firm

114) Notice of retirement of a partner

115) An outgoing partner may subject to any agreement

116) An outgoing partner

117) Where a partner of a firm is adjudicated as insolvent he ceases to be a partner on the date on which

118) Where by a contract between the partners the surviving or continuing partners exercised an option given by the contract ,the estate of the deceased partner

119) When under a contract between the partners ,the firm is not dissolved by the death of a partner ,the estate of deceased partner remains liable for

120) Where a partner in a firm is adjudicated as insolvent he ceases to be a partner from the

121) X .Y & Z are partners ,Z who is in active partnership retires without giving public notice of his retirement .X & Y in carrying on old business incurred a liability towards M,is Z also liable to M

122) Where the existence of a retiring partner was not known to the third party he is not liable for debts incurred but the firm after his retirement even if public notice of his retirement was not given

123) When a minor is admitted to the benefits of the partnership, the partnership agreement should be

124) Retiring partner continues to be liable for acts of the firm done

125) Which of the following is not applicable to a outgoing partner ?

126) A person can be admitted to a partnership firm with the consent of majority of partners only.

127) Implied authority of partner does not include entering into partnership on behalf of the firm.

128) A major and a minor can create a partnership.

129) A partner in a firm has right to receive interest on advances given by him to the firm @ 12% per annum.

130) The invalid expulsion of a partner does not give him a right to claim damages.

131) A partnership contract providing that no partner shall carry on any business other than that of the firm while he is a partner, is void.

132) A partner is not entitled to claim remuneration.

133) A new partner may be introduced in the firm even by any existing partner of the firm.

134) The implied authority of a partner empowers him to acquire immovable property on behalf of the firm.

135) A transferee of a partner’s interest in a firm accepts a loan on behalf of the firm, for which the other partner was authorised to do so, invest it in the non-partnership business, without the consent of all the partners. The transferee is empowered to accept the loan.

136) A partner who has purchased the goodwill of the firm on the dissolution of partnership firm has right to make use of the firm’s name for earning profits.

137) All partners are not joint- owners of the property of the firm, unless otherwise provided in the agreement.

138) A partner may acquire immovable property on behalf of the firm, in the exercise of his implied authority.

139) A partner is not an agent of other partners in a partnership firm.

140) A minor can be a partner in a partnership firm.

141) The transferee of a partner’s interest is entitled to inspect the books of the firm during the continuance of the firm.

142) Goodwill of the firm cannot be regarded as an asset of the firm.

143)

In a partnership firm where a partner is entitled to get interest on the capital subscribed by him, such interest can be paid to him out of capital of the firm.

144) A partner carrying on a business, which is similar in nature and competing with that of the firm is bound to pay to the firm, all the profits earned by him, even when there is no such agreement amongst the partners.

145) A partner making advance of money to the firm, beyond the amount of his agreed capital is entitled to interest on such advanced money.