Which of the following is an exception to the partnership at will, as provided under section 7 of the Indian Partnership Act, 1932
A. Where there is a provision for the duration of the partnership
B. Where there is a provision for determination of the partnership
C. Both (A) and (B)
D. Only (A) and not (B)
Select an option to see the answer and solution.
For the purposes of income-tax, a partnership firm
A. Can be assessed as an entity distinct and separate from its partners
B. Cannot be assessed as an entity separate and distinct from its partners
C. Can be assessed as an entity distinct and separate from its partners only with the permission of the court
D. Can be assessed as an entity distinct and separate from its partners only if all the partners agree for the same
Select an option to see the answer and solution.
Section 38 of the Indian Partnership Act, 1932 provides for
A. Continuation of continuing guarantee by change in the constitution of the firm
B. Revocation of the continuing guarantee by change in the constitution of the firm
C. Both (A) and (B)
D. Alteration/modification of the continuing guarantee according to the change in the constitution of the firm
Select an option to see the answer and solution.
When Partnership is for particular adventures/undertakings, then it is knows as
A. Partnership at will
B. Particular partnership
C. Joint Partnership
D. None of the above
Select an option to see the answer and solution.
The modes of dissolution of a firm provided under the Indian Partnership Act, 1932 are
A. Exhaustive
B. Illustrative
C. Inclusive
D. Only (B) and not (A) or (C)
Select an option to see the answer and solution.
Under section 14 of the Indian Partnership Act, 1932, the property thrown into the common stock at the commencement of the business
A. Becomes the property of the firm
B. Remains the individual property of the partners in the shares contributed by them
C. Becomes the individual property of the partners in equal shares irrespective of their contributions and profit sharing ratio
D. Either (A) or (C)
Select an option to see the answer and solution.
A dormant is that partner
A. Who has taken part in the conduct of the business as partner and is not liable for the act of the firm
B. Who has never taken part in the conduct of the business as a partner and is not liable for the act of the firm
C. Who has never taken part in the conduct of the business as a partner but is liable for the act of the firm
D. Who, due to his special status, has nothing to do with the loss of the business and is entitled to the profit only
Select an option to see the answer and solution.
When an outsider, dealing with a partner, does not know or does not believe that he is contracting with a partner, but an individual only
A. The firm incurs liability if the benefits of the contract has gone to the firm
B. The firm incurs no liability even if the benefits of the contract has gone to the firm
C. The firm incurs liability even if the benefits of the contract has not gone to the firm
D. Either (A) or (C)
Select an option to see the answer and solution.
In Shreeram Finance Corporation v. Yasin Khan & Others, AIR 1989 SC 1764, it has been held that
A. Where there was a change in the constitution of the firm, a suit instituted after change in constitution, but before the change notified in the register, is not maintainable
B. Where there was a change in the constitution of the firm, a suit instituted after the change but before the change notified in the register is maintainable, as the notifying change in the register shall relate back to the date of application for change
C. The maintainability of a suit, where there was a change in the constitution of the firm, a suit instituted after the change but before the change notified in the register, shall be in the discretion of the court
D. Both (B) and (C)
Select an option to see the answer and solution.
'Just and equitable' within the meaning of section 44(g) of the Act, means
A. Convenient
B. Something more than convenient
C. Opinion of the court to be the best course
D. Either (A) or (B) or (C)
Select an option to see the answer and solution.
In case where the dissolution of firm has taken place by efflux of time, and at that time certain transactions remained unfinished, for a suit for accounts, the period of limitation of three years shall commence from
A. The date of completion of the last transaction
B. The date of expiry of the term of the partnership
C. The date of completion of the first transaction
D. Either (A) or (B) or (C) as per the discretion of the court
Select an option to see the answer and solution.
A dissolution of a firm can be inferred from
A. Refusal of some partners co-operate and doing anything to keep the business alive
B. Inability to pay its debts and liabilities
C. Closure of business
D. Neither (A) nor (B) nor (C)
Select an option to see the answer and solution.
Section 13(a) of the Indian Partnership Act, 1932 provides for
A. Payment of remuneration to a partner as a matter of right
B. Payment of remuneration to a partner only when there is an agreement to that effect between the partners
C. Non-payment of remuneration to a partner only when there is an agreement to that effect between the parties
D. Both (A) and (C)
Select an option to see the answer and solution.
Which of the following is not essential ingredient of holding out u/s 28 of the Partnership Act?
A. Representation as a partner
B. Knowledge of representation
C. Giving credit to the firm
D. Representation without knowledge
Select an option to see the answer and solution.
Section 23 of the Indian Partnership Act, 1932 is an exception to
A. Section 19(2)(a)
B. Section 19(2)(c)
C. Section 19(2)(e)
D. Neither (A) nor (B) or (C)
Select an option to see the answer and solution.
The remedy of rescission of a partnership contract is available under
A. The Indian Contract Act, 1872
B. The Indian Partnership Act, 1932
C. The Indian Trusts Act, 1882
D. All the above
Select an option to see the answer and solution.
A partner who retires from a partnership firm, such partners no longer liable for debts or liabilities of the firm towards third persons from the date of his retirement
A. Yes, a retiring person is no longer liable because his liability is only till he continues as a partner of the partnership firm because of Section 13 of the Partnership Act
B. Yes, he is not liable, because after his retirement from the firm, the other partners no longer can act as the agents of the retiring partners as per Section 18 of the Partnership Act
C. A retiring partner is only liable for debt liabilities of the firm to a third person till a public notice is given of his retirement in view of Section 32 of the Partnership Act
D. Liability of the retiring partner will continue unless public notice of the retirement of the retiring partner of the firm is given both by the retiring partners also by the partnership firm
Select an option to see the answer and solution.
No public notice is required to be given in the case of
A. A deceased partner
B. An insolvent partner
C. A dormant partner
D. All the above
Select an option to see the answer and solution.
Introduction of a partner into a firm is regulated by
A. Section 33 of the Act
B. Section 34 of the Act
C. Section 31 of the Act
D. Section 32 of the Act
Select an option to see the answer and solution.
An act, to be called on 'act of a firm', within the meaning of Section 2(a) of the Indian Partnership Act, 1932 is-
A. Every act of the partners
B. Only such acts which give rise to a right enforceable by or against the firm
C. Such acts which do not give rise to a right enforceable by or against the firm
D. Either (A) or (B) or (C)
Select an option to see the answer and solution.
