Partnership Act - Part 1

20 Questions | Total Attempts: 3432

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Partnership Act - Part 1

Questions on : 1)Introduction and Definition of Partnership. 2)Test of Partnership and Non-Partnership Interests. 3)Partners,Firm,Firm Name and Legal Status of a Firm. 4)Classification of Partners and Partnership. __________________________________________________ No. Of Questions to be Answered : Random 20 out of 75


Questions and Answers
  • 1. 
    The legal provisions relating to Partnerships are contained in 
    • A. 

      The Partnership Act,1930

    • B. 

      The Indian Partnership Act,1930

    • C. 

      The Partnership Act,1932

    • D. 

      The Indian Partnership Act,1932

  • 2. 
    The Indian Partnership Act, 1932,  extends to
    • A. 

      Whole of India

    • B. 

      Whole of India except Jammu & Kashmir

    • C. 

      Northern India

    • D. 

      States notified from time to time

  • 3. 
    Prior to the passing of the Indian partnership Act, 1932, the provisions relating to the partnerships were containesd in 
    • A. 

      The Companies Act

    • B. 

      The Indian Contract Act,1872

    • C. 

      The Sale of Goods Act,1930

    • D. 

      The Indian Partnership Act,1872

  • 4. 
    The legal definition of the 'Partnership' is given in which of the following section of the Indian Partnership Act, 1932 ??
    • A. 

      Section 2

    • B. 

      Section 3

    • C. 

      Section 4

    • D. 

      Section 5

  • 5. 
    Partnership is the relation between persons who have agred to share the profits of a business carried on by 
    • A. 

      All of them jointly.

    • B. 

      All of the partners or any of them acting for all.

    • C. 

      Any of the partners acting on his own behalf.

    • D. 

      A manager appointed to carry on the business.

  • 6. 
    Which of the folowing is an essential feature of a Partnership ??
    • A. 

      Result of an Agreement

    • B. 

      Sharing of Profits

    • C. 

      Mutual agency between Partners

    • D. 

      All of these

  • 7. 
    Which of the folowing is not an essential feature of Partnership ??    (i) Association of two or more persons.   (ii) Seperate legal entity.  (iii) Mutual agency between partners.  (iv) Registration
    • A. 

      (i), (ii)

    • B. 

      (ii), (iii)

    • C. 

      (iii), (iv)

    • D. 

      (ii), (iv)

  • 8. 
    The minimum number of persons required to form a partnership is
    • A. 

      2

    • B. 

      5

    • C. 

      7

    • D. 

      11

  • 9. 
    The maximim number of persons in a Partnership firm carrying on the Banking Business, should not exceed
    • A. 

      5

    • B. 

      7

    • C. 

      10

    • D. 

      11

  • 10. 
    The maximum number of persons in a firm carrying on any business, other than Banking Business, should not exceed
    • A. 

      5

    • B. 

      7

    • C. 

      10

    • D. 

      20

  • 11. 
    The limit for maximum number of partners in a firm is provided in 
    • A. 

      Section 11 of The Indian Partnership Act,1932

    • B. 

      Section 11 of The Companies Act,1956

    • C. 

      Section 11 of The Indian Contract Act,1872

    • D. 

      None of these.

  • 12. 
    Where the maximum number of partners in a firm carrying on banking bussiness exceeds ten and in any other firm exceeds twenty , then the partnership become a _____
    • A. 

      Company

    • B. 

      Illegal Association

    • C. 

      Corparation

    • D. 

      Legal Association

  • 13. 
    Where in an existing partnership firm, the number of partners is reduced to one , the firm is compulsorily dissolved
    • A. 

      True, as there must be at least two persons in a partnership firm.

    • B. 

      False,as once a partnership firm is formed. It continues to exist till it dissolved by a court order.

  • 14. 
    Two partnership firms can enter into an agreement to form a patnership firm between them
    • A. 

      True, as a firm is legally regarded as a person and can enter into a partnership agreement with another film.

    • B. 

      False, as a firm is not regarded as a person in legal sense of the term.

  • 15. 
    Can a company become a partner in a firm?
    • A. 

      Yes, as the company is regarded as person in legal sense of the term.

    • B. 

      No, as the partnership is an association of natural persons only.

  • 16. 
    The relation of Partnership arises from
    • A. 

      Agreement

    • B. 

      Status

    • C. 

      Feelings

    • D. 

      None of these

  • 17. 
    A Partnership firm comes into existence by
    • A. 

      Operation of Law

    • B. 

      Agreement

    • C. 

      Status

    • D. 

      None of these

  • 18. 
    A Partnership Firm comes into existence by agreement between all the partners,  and such agreement should be
    • A. 

      Express Agreement only.

    • B. 

      Implied Agreement only.

    • C. 

      Either Express or Implied

    • D. 

      Registered.

  • 19. 
    A written agreement by which a Partnership firm is created is known as
    • A. 

      Partnership Deed

    • B. 

      Deep Document

    • C. 

      Licence Agreement

    • D. 

      None of these.

  • 20. 
    A partnership can be created only by a Partnership Deed.
    • A. 

      True, as it is the requirement of Law.

    • B. 

      False, as it can also be created by an Oral Agreement.

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