1. [THE PARTNERSHIP ACT 1932] December 8, 2010
Important MCQ’s on partnership Act
Q.1 Bharath paid a premium for entering into Partnership for a fixed term. The Firm is dissolved
before the expiry of such term. In which of these cases is Bharath entitled to return of premium
or any part thereof?
1. Dissolution is caused by death of a Partner
2. Dissolution is due to Bharath's misconduct
3. Dissolution is based on agreement which contains no provision as to return to the premium
4. Dissolution is due to the retirement of another Partner.
Q.2 which of the following partners are not liable in 'relation to the Firm'?
1. Partner by holding out
2. Working Partner
3. Sub-Partner
4. Partner by estoppel.
Q.3 a partner of an Unregistered Firm cannot Sue the Firm or any other Partner of the Firm to
enforce a right
1. Arising from a contract
2. Conferred by the Partnership Act
3. Either (1) or (2)
4. Both (1) and (2)
Q.4 Registration of Firm does not create Partnership, but is only the evidence of existence of
Partnership.
1. True
2. Partly True
3. False
4. Partly False
Q.5 a partner of an unregistered firm can sue for ____ of the firm.
1. Goodwill
2. Share in property
3. Dissolution
4. Nothing
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2. [THE PARTNERSHIP ACT 1932] December 8, 2010
Q.6 The conclusive evidence of registration of firms is :
1. The register of firms maintained by the Registrar of Firm
2. The certificate of registration of the firm
3. A certified copy of the Register of Firms
4. None of the above
Q.7 Firm will not be compulsorily dissolved, when
1. The partnership has various adventures & one such adventure becomes illegal
2. The decision is taken by all the partners to dissolve the Firm
3. The business of the Firm becomes unlawful
4. All partners or any one of the partners is declared insolvent.
Q.8 The partnership deed must be properly drafted and stamped according to the provision of :
1. Indian Partnership Act
2. Indian Stamp Act
3. Income Tax Act
4. The Companies Act
Q.9 The accounting rule in respect of loss arising due to insolvency of a partner is dealt with in
____
1. Garner vs Murray
2. Hyde vs wrench
3. Carl ill vs carbolic smoke Ball co
4. Derry vs peek.
Q.10 Which of the following acts are not included in the implied authority of a partner?
1. To buy or sell goods on account of partnership
2. To borrow money for the purposes of firm
3. To enter into partnership on behalf of firm
4. To engage a lawyer to defend actions against firm
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3. [THE PARTNERSHIP ACT 1932] December 8, 2010
Q.11 Expulsion of a partner from the firm is regular when partnership deed authorizes the other
partners and they use this authority by:
1. Any majority of the partners
2. Two - third majority of the partners
3. Three - forth majority of the partners
4. Unanimous consent of the all existing partners
Q.12 In which of the following cases, the Firm is not bound by the act of the Partner?
1. Act done by a Partner or his agent on behalf of the Firm
2. Act done by a Partner in the Firm name
3. Act done by a Partner in any manner expressing or implying an intention to bind the Firm
4. Act done fraudulently or negligently
Q.13 Liability of a Partner is -
1. Limited to the extent of his share of the business profits
2. Unlimited
3. Limited to the extent of capital
4. Limited to the extent of loan given to the Firm.
Q.14 A, B and C are in Partnership. A and C are adjudicated insolvent, while B wants to
continue the Firm. Which of the following is true?
1. Firm is also declared insolvent
2. B has to repay the debts of the Firm
3. Firm is automatically dissolved and hence B cannot continue
4. The Court has to give order for dissolution.
Q.15 X, Y and Z were Partners in a Firm. During the course of business, the Firm ordered a
Textile Machinery with ABC Ltd. After the order was placed, but before delivery of machinery,
X expired. Thereafter the remaining Partners became insolvent and the Firm was unable to pay
for the machine.
1. X's estate will be liable for the price of the Machinery
2. X's estate will not be liable for the price of the Machinery
3. ABC Ltd will be liable for the price of the Machinery
4. ABC Ltd will not be liable for the price of the Machinery.
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4. [THE PARTNERSHIP ACT 1932] December 8, 2010
Q.16 Partnership property vests -
1. In the Partner of the Firm
2. In the Firm
3. In the continuing Partners of the Firm
4. In the retiring Partners of the Firm.
Q.17.The relation between partners arise
1. from status
2. from an agreement
3. from legal provisions
4. from mutual under standing
Q.18.A firm is the name of
1.the collective name under which partners business
2.the business under which the firm carries on business
3.the minors in the firm
4.the Partners
Q.19.X and Y agree to divide the profits of a business in equal shares but the loss if any, to be
borne by X alone. The partnership agreement is
1. Void
2. lawful
3. voidable
4. illegal
Q.20.The Partnership Act extends to the whole of India except the state of
1. Jammu & Kashmir
2. Maharashtra
3. Goa
4. Uttar Pradesh
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5. [THE PARTNERSHIP ACT 1932] December 8, 2010
Q.21.Partnership agreements may be
1.implied
2.expressed
3.(1) and (2)
4.(1) or (2)
Q.22. In which of the following cases compulsory dissolution of a partnership is not possible
1. By business becoming illegal
2. By notice of dissolution
3. By transferring the business place of firm from one place to another place
4. by mutual agreement
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