Partnership Act - Part 3

45 Questions | Total Attempts: 298

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Partnership Quizzes & Trivia

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.

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