Partnership Act - Part 3

45 Questions | By Sweetsalman123 | Last updated: Mar 21, 2022 | Total Attempts: 377

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Questions on : 1)Rights of Partners. 2)Duties of Partners. 3)Posting of a Minor Partner in a Firm. __________________________________________________ No. Of Questions to be Answered : Random 20 out of 45

Questions and Answers

1.

Which of the following rights, cannot be claimed by a partner as matter of right?
- A.
  
  Right to share profits
- B.
  
  Right to receive remuneration
- C.
  
  Right to take part in business
- D.
  
  Right to have access to account books.
2.

Subject to an agreement to the contrary, the right to take part in the business affairs of the firm is available to
- A.
  
  All the partners
- B.
  
  Only managing partners
- C.
  
  Only senior partners
- D.
  
  Manager of the firm.
3.

It is the rights of every partner to be consulted in
- A.
  
  The matters affecting the interest of concerned partner only.
- B.
  
  All matters affecting the business of the firm.
- C.
  
  Ordinary matters only but not in fundamental matters.
- D.
  
  None of these, as no such right is provided to the partners.
4.

In a partnership firm, every partner has the right
- A.
  
  To be consulted on all matters affecting the business of the firm.
- B.
  
  To express his opinion before any matter affecting firm business is decided.
- C.
  
  Both of these
- D.
  
  None of these.
5.

In a partnership firm, the difference of option over 'ordinary matter's can be settled by the decision of
- A.
  
  All the partners.
- B.
  
  Majority of partners.
- C.
  
  Senior partners.
- D.
  
  Managing partner.
6.

In a partnership firm, the difference of opinion over some 'fundamental matter' can be settled by the decision of
- A.
  
  All the partners
- B.
  
  Majority of partners
- C.
  
  Senior partners
- D.
  
  Managing partner.
7.

Subject to an agreement to the country, a change in the matters affecting the partnership business.
- A.
  
  Can be effected with the consent of majority partners.
- B.
  
  Can be effected with the consent of all the partners.
- C.
  
  Cannot be effected at all as it is not authorised under the Act.
- D.
  
  Is one of the ground of compulsorily dissolution of firm.
8.

The 'fundamental matters' with can be decided with the consent of all the partners, include the question of any
- A.
  
  Alteration of business
- B.
  
  Addition to the business
- C.
  
  Admission of a new partner
- D.
  
  All of these.
9.

In the absence of any agreement, the partners are not entitled to receive any interest on their contribution towards capital.
- A.
  
  Equally
- B.
  
  In the ratio of capital
- C.
  
  In the ratio of loan advanced
- D.
  
  As decided by Registrar.
10.

In the absence of any agreement. The partners are not entitled to receive any interest on their contribution towards capital.
- A.
  
  True
- B.
  
  False
11.

Where a partner is entitled to interest on capital contributed by him, the interest shall be payable
- A.
  
  Out of capital only
- B.
  
  Out of profits only
- C.
  
  Either (a) or (b)
- D.
  
  None of these.
12.

In the absence of any agreement, the interest to partners on the amount of loan advanced to the firm, it slowed at
- A.
  
  4% per annum
- B.
  
  6% per annum
- C.
  
  8% per annum
- D.
  
  Market rate.
13.

The interest to a partner, on the amount of loan advanced by him, is payable even if the firm suffers losses.
- A.
  
  True
- B.
  
  False
14.

A partners of a firm has right to recover form the firm, the expenses incurred in
- A.
  
  The ordinary course of business
- B.
  
  An emergency to protect the firm property.
- C.
  
  Both (a) and (b)
- D.
  
  Only (b).
15.

In the absence of a specific agreement, a partner is not entitled to receive any remuneration form the firm for taking part in the affairs of the firm.
- A.
  
  True
- B.
  
  False
16.

A working partner who receives certain remuneration form the firm as per the express agreement, becomes an employee of the firm.
- A.
  
  True
- B.
  
  False
17.

Partners duty of good faith cannot be excluded by an agreement to the contrary,
- A.
  
  True
- B.
  
  False
18.

The duty of good faith implies that partners are bound to be just and faithful to each, other and is provided in _________
- A.
  
  Section 8
- B.
  
  Section 9
- C.
  
  Section 10
- D.
  
  Section 11
19.

In addition to the duty to be just and faithful to each other, which other duties of partners are provided in Section 9 of the Indian Partnership Act 1932?
- A.
  
  Duty to carry on firm business to the greatest common advantage.
- B.
  
  Duty to render the true accounts.
- C.
  
  Duty to give full information of all things affecting the firm.
- D.
  
  All of these.
20.

If some loss is caused to the firm due to the fraud of a particular partner, then it is the
- A.
  
  Duty to guilty partner to indemnify the firm.
- B.
  
  Duty of all partners to jointly indemnify the firm.
- C.
  
  Right of the firm to recover loss from the guilty partner.
- D.
  
  Both (b) and (c).
21.

Duty to indemnify the firm for losses caused by partner's fraud is an absolute duty and
- A.
  
  Cannot be excluded by an agreement to the contrary.
- B.
  
  Can only be excluded by an agreement to the contrary.
- C.
  
  Makes the guilty partner liable for imprisonment.
- D.
  
  Both (a) and (c).
22.

Where some loss is caused t o the third party due to the fraud of one of the partners, then the firm is
- A.
  
  Liable to the third party .
- B.
  
  Not liable to the third party.
- C.
  
  Entitled to recover loss from t he guilty partner.
- D.
  
  Both (a) and (c).
23.

Partner's duty to indemnity the firm for losses caused by his fraud is provided in
- A.
  
  Section 9
- B.
  
  Section 10
- C.
  
  Section 11
- D.
  
  Section 12
24.

Which of the following statement is incorrect ?
- A.
  
  It is the duty of every partner to attend diligently to the affairs to the affairs of firm business.
- B.
  
  If firm suffers some loss due to 'willful neglect' of partner then he is bound to compensate the firm.
- C.
  
  Partner's duty to attend diligently cannot be excluded by an agreement to the contrary.
- D.
  
  Partner's duty to attend diligent can be excluded by an agreement to the contrary.
25.

It is the duty of every partner to share in equal proportions the losses suffered by the film.
- A.
  
  True, as losses are always shared equally.
- B.
  
  False, as partners may agree to share losses in different proportions.