Practice Test

Q1) Which of the following is true , about minor partner's position Show Answer

Q2) 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 Show Answer

Q3) Expulsion of partner Show Answer

Q4) On attaining majority if a minor elects to become partner, he will be liable for the debts of the firm Show Answer

Q5) The liabilities of a minor in a partnership Show Answer

Q6) Partner by holding out' is explained in section Show Answer

Q7) With the powers conferred by contract between the partners ,majority of the partner Show Answer

Q8) A minor with the consent of all the partners for the time being Show Answer

Q9) Any difference arising as to ordinary matters connected with the business may be decided by Show Answer

Q10) In absence of any agreement a partner are entitled to share the profits Show Answer

Q11) A partner of a firm by providing the partnership deed Show Answer

Q12) When no specific provision is provided in the partnership deed ,the partner Show Answer

Q13) When no specific provision is provided in the partnership deed ,the firm Show Answer

Q14) A partner shall pay to the firm any profit derived by him Show Answer

Q15) A partner shall pay to the firm any profit made by him Show Answer

Q16) A person may be admitted to a firm Show Answer

Q17) A minor Show Answer

Q18) In case of partnership at will a partner is Show Answer

Q19) A partner is liable for all acts of the firm done while he is a partner Show Answer

Q20) The rule of estoppels implies that a person who holds himself out to be partner Show Answer

Q21) Does the assignees of a partner's interest by sale, mortgage or otherwise enjoy the same rights & privileges as the original partner ? Show Answer

Q22) Every partner cannot participate in the conduct of the business Show Answer

Q23) A partner who receives certain remuneration from the firm as per the express agreement ,becomes an employee of the firm Show Answer

Q24) Which of the following statements is incorrect when the minor elects not to become a partner ? Show Answer

Q25) Partners are bound to carry on the business of the firm Show Answer

Q26) Which of the following partners are not liable in relation to the firm ? Show Answer

Q27) It is the duty of every partner to share in equal proportion the losses suffered by the firm Show Answer

Q28) On attaining majority, which statement is correct ? Show Answer

Q29) Every partner is bound to attend ____to his duties ,in the conduct of the business Show Answer

Q30) Identify the correct sentence Show Answer

Q31) Minor can become a partner in an existing firm Show Answer

Q32) Duty of partner Show Answer

Q33) In absence of any agreement a partner for taking part in conduct of the business is Show Answer

Q34) Every partner has a right Show Answer

Q35) A partner can be expelled if------------ Show Answer

Q36) Which of the following is not the right of a partner ? Show Answer

Q37) Which of the following acts are not included in the implied authority of a partner Show Answer

Q38) 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 Show Answer

Q39) 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 Show Answer

Q40) Firm is bound by all acts of a partner done within the scope Show Answer

Q41) Implied Authority of partner Show Answer

Q42) Statutory restriction Show Answer

Q43) The relation between the partners is Show Answer

Q44) Where any partner or his representative has brought amount for the goodwill of the firm ,he Show Answer

Q45) The implied authority of any partner in a firm Show Answer

Q46) A new partner is liable for all acts of the firm Show Answer

Q47) The duties of a partner are Show Answer

Q48) Every partner shall indemnify the firm Show Answer

Q49) The mutual rights & duties of the partner of a firm may be determined Show Answer

Q50) The nature of the business may be changed by consent of ------------ Show Answer

Q51) Property of the firm shall be held & used by the partners Show Answer

Q52) Subject to contract between the partners , the property of the firm includes Show Answer

Q53) The implied authority of any partner does not empower him Show Answer

Q54) The implied authority of any partner does not empower him Show Answer

Q55) Any act done by a partner on behalf of the firm within his implied authority Show Answer

Q56) In an emergency a partner shall do Show Answer

Q57) In order to bind a firm ,an act or instrument done or executed by a partner Show Answer

Q58) A notice binds the firm if Show Answer

Q59) Every partner is liable for all the acts of the firm Show Answer

Q60) Where any wrong act or omission is done by a partner Show Answer

Q61) A, a partner in a firm transferred his interest by creation of a charge on such interest Show Answer

Q62) A,a partner in a firm transferred his interest by creation of a charge on such interest Show Answer

Q63) Interest on capital is payable only out of Show Answer

Q64) Which of this falls outside the implied authority ? Show Answer

Q65) 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? Show Answer

Q66) Section 53 prohibits partners from carrying on similar business in their own name ,till the affairs of the firm are completely wound up Show Answer

Q67) For loss caused to the firm by his fraud in the conduct of the business , partner shall Show Answer

Q68) Goodwill is the property of the firm ,& like any other property it belongs proportionately to all the partners Show Answer

Q69) The liability of a new partner generally commences from Show Answer

Q70) In which of the following cases ,a partner is not required to pay over the profits to the firm Show Answer

Q71) 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 Show Answer

Q72) when the person makes advances to the firm over & above the amount of capital to be contributed by him can he claim interest thereon ? Show Answer

Q73) 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 Show Answer

Q74) liability of a partner is Show Answer

Q75) Can a share in a partnership be transferred like any other property ? Show Answer

Q76) An unregistered firm can enforce by the suit its due from a third party Show Answer

Q77) Which of the following is not an 'usual activity ' for a trading concern ,for implied authority purpose ? Show Answer

Q78) The mutual rights and duties of partners are governed Show Answer

Q79) Which of the following statements is correct? Show Answer

Q80) A partner has a right to _____ for the acts done in emergency Show Answer

Q81) Every partner has the right to Show Answer

Q82) Interest on capital subscribed by a partner may be provided for in the partnership deed Show Answer

Q83) The interest to partners on their capital should be provided only out of Show Answer

Q84) Unless otherwise agreed, a partner Show Answer

Q85) Unless otherwise agreed, every partner must account for and pay all profits earned by him Show Answer

Q86) A firm, in the course of its business, receives money from a third party. If one of the partners misapplies it, then Show Answer

Q87) _____ duties cannot be altered Show Answer

Q88) The firm is entitled/liable ______ made by a partner in a competing business Show Answer

Q89) _____ is liable to a third person for the willful neglect or fraud of partner Show Answer

Q90) Any profit earned without the consent of partners and by using the property of the firm, then such profit Show Answer

Q91) _________ duties are those which depend upon agreement between the partners Show Answer

Q92) A partner cannot transfer his______ Show Answer

Q93) Implied authority means the capacity of a partner to bind Show Answer

Q94) A partner of a trading firm has implied authority to Show Answer

Q95) _______ is included in the implied authority of a partner. Show Answer

Q96) Which of the following is under the implied authority of a partner in a firm? Show Answer

Q97) Authority of a partner can be Show Answer

Q98) The firm is liable to third partied for wrongful acts, only if it is done Show Answer

Q99) Implied authority of partner overs Show Answer

Q100) In case of _____ a partner has the authority to do all such acts as to protect the firm from loss Show Answer

Q101) Which of the following is correct? Show Answer

Q102) A partner's authority in an emergency Show Answer

Q103) For all acts of the firm done while he is partner every partner is Show Answer

Q104) Implied authority of a partner is subject to Show Answer

Q105) To bind the firm, an act done by a partner on behalf of the firm shall be done Show Answer

Q106) For the acts of the firm, every partner is jointly and severally liable, if the acts are done Show Answer

Q107) Partner shall indemnify the firm for any loss caused to it by ____ in the conduct of firm's business Show Answer

Q108) 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 Show Answer

Q109) A partner shall account for and pay all profit to the firm, as is derived from a business which is Show Answer

Q110) When the minor elects not to become a partner he is entitled to sue the partners for his share in the profits and property Show Answer

Q111) A minor admitted to the benefits of the partnership Show Answer

Q112) If a person fails to give public notice of his becoming major Show Answer

Q113) A partner may retire from the firm Show Answer

Q114) Notice of retirement of a partner Show Answer

Q115) An outgoing partner may subject to any agreement Show Answer

Q116) An outgoing partner Show Answer

Q117) Where a partner of a firm is adjudicated as insolvent he ceases to be a partner on the date on which Show Answer

Q118) 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 Show Answer

Q119) 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 Show Answer

Q120) Where a partner in a firm is adjudicated as insolvent he ceases to be a partner from the Show Answer

Q121) 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 Show Answer

Q122) 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 Show Answer

Q123) When a minor is admitted to the benefits of the partnership, the partnership agreement should be Show Answer

Q124) Retiring partner continues to be liable for acts of the firm done Show Answer

Q125) Which of the following is not applicable to a outgoing partner ? Show Answer

Q126) A person can be admitted to a partnership firm with the consent of majority of partners only. Show Answer

Q127) Implied authority of partner does not include entering into partnership on behalf of the firm. Show Answer

Q128) A major and a minor can create a partnership. Show Answer

Q129) A partner in a firm has right to receive interest on advances given by him to the firm @ 12% per annum. Show Answer

Q130) The invalid expulsion of a partner does not give him a right to claim damages. Show Answer

Q131) 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. Show Answer

Q132) A partner is not entitled to claim remuneration. Show Answer

Q133) A new partner may be introduced in the firm even by any existing partner of the firm. Show Answer

Q134) The implied authority of a partner empowers him to acquire immovable property on behalf of the firm. Show Answer

Q135) 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. Show Answer

Q136) 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. Show Answer

Q137) All partners are not joint- owners of the property of the firm, unless otherwise provided in the agreement. Show Answer

Q138) A partner may acquire immovable property on behalf of the firm, in the exercise of his implied authority. Show Answer

Q139) A partner is not an agent of other partners in a partnership firm. Show Answer

Q140) A minor can be a partner in a partnership firm. Show Answer

Q141) The transferee of a partner’s interest is entitled to inspect the books of the firm during the continuance of the firm. Show Answer

Q142) Goodwill of the firm cannot be regarded as an asset of the firm. Show Answer

Q143)

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. Show Answer

Q144) 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. Show Answer

Q145) A partner making advance of money to the firm, beyond the amount of his agreed capital is entitled to interest on such advanced money. Show Answer