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1. The statute governing partnership law in India is known as:
a. The Indian Firms Act, 1932
b. The Indian Partnership Act, 1932
c. The Partnership Regulation Act, 1932
d. The Indian Commercial Partnership Act, 1932
2. The Indian Partnership Act was enacted as:
a. Act No. 8 of 1932
b. Act No. 7 of 1932
c. Act No. 9 of 1932
d. Act No. 10 of 1932
3. The Indian Partnership Act received assent and was enacted on:
a. 1st October, 1932
b. 26th January, 1930
c. 8th April, 1932
d. 15th August, 1947
4. The preamble of the Indian Partnership Act, 1932 states that the Act was enacted:
a. To regulate commercial companies in India
b. To define and amend the law relating to partnership
c. To consolidate the law relating to contracts
d. To regulate trade and commerce in India
5. The expression “WHEREAS it is expedient to define and amend the law relating to partnership” appears in the:
a. Short title clause
b. Definition clause
c. Preamble of the Act
d. Interpretation clause
6. Section 1 of the Indian Partnership Act, 1932 deals with:
a. Short title, extent and commencement of the Act
b. Definitions under the Act
c. Application of the Indian Contract Act
d. Registration of firms
7. This Act may be called:
a. The Indian Partnership Regulation Act, 1932
b. The Indian Partnership Act, 1932
c. The Partnership Firms Act, 1932
d. The Indian Commercial Partnership Act, 1932
8. The Indian Partnership Act, 1932 extends to:
a. The whole of India
b. Only the States notified by the Central Government
c. All States except Union Territories
d. Only territories where firms are registered
9. The Indian Partnership Act, 1932 came into force on:
a. 1st January, 1932
b. 8th April, 1932
c. 1st October, 1932
d. 26th January, 1950
10. Which provision of the Indian Partnership Act came into force on 1st October, 1933?
a. Section 1
b. Section 4
c. Section 69
d. Section 72
11. Section 2 of the Indian Partnership Act, 1932 deals with:
a. Determination of partnership
b. Definitions applicable under the Act
c. Registration of firms
d. Rights of partners
12. Under the Indian Partnership Act, the expression “act of a firm” means:
a. Only acts done jointly by all partners
b. Any act or omission by all partners or by any partner or agent of the firm giving rise to a right enforceable by or against the firm
c. Only acts authorized by a written partnership deed
d. Only acts done in the ordinary course of business
13. Under the Indian Partnership Act, the term “business” includes:
a. Trade only
b. Trade and manufacture only
c. Every trade, occupation and profession
d. Commercial trading activities only
14. The term “prescribed” under the Indian Partnership Act, 1932 means:
a. Prescribed by the Central Government through notification
b. Prescribed by rules made under the Act
c. Prescribed by the Registrar of Firms
d. Prescribed by the partnership agreement
15. In relation to a firm or a partner therein, the term “third party” refers to:
a. Any creditor of the firm
b. Any agent of the firm
c. Any person who is not a partner in the firm
d. Any person having business relations with the firm
16. Expressions used but not defined in the Indian Partnership Act, 1932 but defined in the Indian Contract Act, 1872 shall:
a. Have the meanings assigned to them in the Indian Contract Act, 1872
b. Be interpreted according to commercial usage
c. Be defined by the Registrar of Firms
d. Be determined by judicial interpretation only
17. Section 3 of the Indian Partnership Act, 1932 deals with:
a. Registration of firms
b. Application of provisions of the Indian Contract Act, 1872
c. Determination of partnership
d. Rights of partners
18. The unrepealed provisions of the Indian Contract Act, 1872 apply to firms:
a. Only when the partnership deed provides so
b. Only in matters relating to dissolution
c. Save in so far as they are inconsistent with the express provisions of the Partnership Act
d. Only when directed by the Registrar of Firms
19. Section 4 of the Indian Partnership Act, 1932 deals with:
a. Registration of firms
b. Definition of partnership and related expressions
c. Determination of existence of partnership
d. Partnership at will
20. According to Section 4 of the Indian Partnership Act, “partnership” is:
a. An association of persons carrying on business together
b. The relation between persons who agree to contribute capital to a business
c. The relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all
d. A business organization registered under law
21. The essential element that the business must be carried on by “all or any of them acting for all” in the definition of partnership indicates:
a. Equal capital contribution
b. Principle of mutual agency
c. Limited liability of partners
d. Majority control of partners
22. Persons who have entered into partnership with one another are called:
a. Individually members and collectively a company
b. Individually partners and collectively a firm
c. Individually agents and collectively principals
d. Individually shareholders and collectively an association
23. The name under which the business of a partnership is carried on is called:
a. Trade name
b. Partnership title
c. Firm name
d. Commercial designation
24. Section 5 of the Indian Partnership Act, 1932 deals with:
a. Admission of partners
b. Partnership arising from contract and not from status
c. Registration of partnership
d. Rights of partners
25. According to Section 5, the relation of partnership arises from:
a. Status
b. Custom
c. Contract
d. Registration
26. Members of a Hindu Undivided Family carrying on a family business as such are:
a. Partners in that business by operation of law
b. Not partners merely by reason of such status
c. Partners only if profits are shared equally
d. Automatically deemed partners after registration
27. A Burmese Buddhist husband and wife carrying on business together are:
a. Partners by presumption of law
b. Partners if profits are shared equally
c. Not partners merely by reason of their marital status
d. Partners only when the firm is registered
28. Section 6 of the Indian Partnership Act, 1932 deals with:
a. Mode of determining the existence of partnership
b. Registration of firms
c. Rights of partners in accounts
d. Dissolution of firms
29. In determining whether a group of persons constitutes a firm, regard shall be had primarily to:
a. The written partnership deed
b. The real relation between the parties as shown by all relevant facts taken together
c. The capital contribution of the parties
d. The number of persons carrying on business
30. Sharing of profits or gross returns arising from property by persons having a joint or common interest in that property:
a. Automatically creates partnership
b. Creates a presumption of partnership
c. Does not of itself make such persons partners
d. Makes them partners if profits are substantial
31. The receipt of a share of profits of a business by a person:
a. Always makes him a partner
b. Raises a presumption of partnership
c. Does not of itself make him a partner
d. Makes him a partner if profits are periodic
32. Receipt of a share of profits by a lender of money advanced to persons engaged in business:
a. Makes the lender a partner
b. Makes the lender a dormant partner
c. Does not of itself make the lender a partner
d. Creates a presumption of partnership
33. Receipt of a share of profits by a servant or agent as remuneration:
a. Makes him a partner
b. Does not of itself make him a partner
c. Makes him a nominal partner
d. Automatically creates partnership
34. Receipt of a share of profits by the widow or child of a deceased partner as annuity:
a. Makes them partners in the firm
b. Creates limited partnership
c. Does not of itself make them partners
d. Makes them managing partners
35. Receipt of a share of profits by a previous owner as consideration for sale of goodwill:
a. Automatically creates partnership
b. Does not of itself make him a partner
c. Makes him a sleeping partner
d. Makes him a partner only if he participates in management
36. Section 7 of the Indian Partnership Act, 1932 deals with:
a. Particular partnership
b. Partnership at will
c. Dissolution by agreement
d. Registration of firms
37. A partnership is said to be “partnership at will” when:
a. It is created orally
b. The partners agree to renew it annually
c. No provision is made by contract for the duration of partnership or its determination
d. It is not registered
38. Section 8 of the Indian Partnership Act, 1932 deals with:
a. Partnership at will
b. Particular partnership
c. Limited partnership
d. Temporary partnership
39. A person may become a partner with another person in:
a. Only general business of the firm
b. Particular adventures or undertakings
c. Only businesses registered under the Act
d. Only commercial ventures approved by partners
40. Section 9 of the Indian Partnership Act, 1932 deals with:
a. Registration of firms
b. General duties of partners
c. Mutual rights of partners
d. Property of the firm
41. Under Section 9, partners are bound to carry on the business of the firm:
a. For the benefit of the managing partner
b. For the greatest common advantage of the partners
c. For maximizing individual profits
d. Only according to written agreement
42. According to Section 9, partners must act towards each other:
a. As competitors
b. Justly and faithfully
c. Only as agents
d. With limited responsibility
43. Partners are required to render true accounts and full information of all things affecting the firm to:
a. Only the managing partner
b. Only the Registrar of Firms
c. Any partner or his legal representative
d. Only the creditors of the firm
44. Section 10 of the Indian Partnership Act, 1932 deals with:
a. Indemnity for negligence
b. Indemnity for loss caused by fraud
c. Contribution of capital
d. Settlement of accounts
45. Every partner shall indemnify the firm for loss caused by:
a. His absence from business
b. His negligence
c. His fraud in the conduct of the business of the firm
d. His lack of experience
46. Section 11 of the Indian Partnership Act, 1932 deals with:
a. Determination of rights and duties of partners by contract
b. Registration of partnership
c. Dissolution of partnership
d. Admission of partners
47. Subject to the provisions of the Act, the mutual rights and duties of partners may be determined by:
a. Majority decision
b. Contract between the partners
c. Decision of the Registrar
d. Court order
48. A contract determining the mutual rights and duties of partners may be:
a. Only written
b. Only oral
c. Express or implied by a course of dealing
d. Valid only if registered
49. Such contract between partners may be varied:
a. By majority of partners
b. By consent of all the partners
c. By the managing partner
d. By the Registrar of Firms
50. The consent of partners for variation of such contract may be:
a. Express only
b. Written only
c. Express or implied by a course of dealing
d. By majority vote
51. Notwithstanding Section 27 of the Indian Contract Act, 1872, a partnership contract may validly provide that:
a. A partner may engage in competing business freely
b. A partner shall not carry on any business other than that of the firm while he is a partner
c. A partner cannot withdraw from the firm
d. A partner must invest additional capital
52. Section 12 of the Indian Partnership Act, 1932 deals with:
a. Rights and duties relating to the conduct of business
b. Dissolution of partnership
c. Registration of firms
d. Admission of partners
53. Subject to contract between the partners, every partner has the right:
a. To take part in the conduct of the business
b. To act only through the managing partner
c. To supervise accounts only
d. To manage only if elected by majority
54. Every partner is bound:
a. To contribute equal capital
b. To attend diligently to his duties in the conduct of the business
c. To manage the firm individually
d. To maintain personal accounts
55. Differences as to ordinary matters connected with the business may be decided by:
a. The Registrar of Firms
b. Majority of the partners
c. The managing partner alone
d. Unanimous consent
56. No change may be made in the nature of the business of the firm without:
a. Majority consent
b. Registrar's approval
c. Consent of all the partners
d. Court order
57. Every partner has the right:
a. To inspect books only with permission
b. To access, inspect and copy the books of the firm
c. To inspect books only annually
d. To inspect books only if authorized by the managing partner
58. Section 13 of the Indian Partnership Act, 1932 deals with:
a. Mutual rights and liabilities of partners
b. Registration of firms
c. Dissolution of partnership
d. Admission of partners
59. Subject to contract between the partners, a partner taking part in the conduct of the business:
a. Is entitled to remuneration
b. Is entitled to remuneration only if profits arise
c. Is not entitled to remuneration
d. Is entitled to remuneration decided by majority
60. In the absence of a contract to the contrary, partners are entitled to share profits:
a. In proportion to capital
b. Equally
c. In proportion to labour
d. According to seniority
61. In the absence of agreement to the contrary, partners must contribute to losses:
a. Equally
b. In proportion to capital
c. According to profit share
d. Only the managing partner
62. Interest on capital subscribed by a partner is payable:
a. Whether profits arise or not
b. Only out of profits
c. At the discretion of the managing partner
d. Only when agreed annually
63. A partner making an advance beyond the capital agreed to be subscribed is entitled to interest at:
a. 5% per annum
b. 6% per annum
c. 8% per annum
d. 10% per annum
64. The firm shall indemnify a partner in respect of payments made:
a. Only if approved by majority
b. In the ordinary and proper conduct of the business
c. Only if profits arise
d. Only when authorised by written agreement
65. A partner shall indemnify the firm for loss caused by:
a. His negligence
b. His absence from business
c. His wilful neglect in the conduct of business
d. His inexperience
66. Section 14 of the Indian Partnership Act, 1932 deals with:
a. Property of the firm
b. Settlement of accounts
c. Dissolution of partnership
d. Registration of firms
67. Property of the firm includes:
a. Only property originally contributed by partners
b. Property brought into stock of the firm or acquired for the firm including goodwill
c. Only immovable property
d. Only property recorded in books
68. Unless a contrary intention appears, property acquired with money belonging to the firm is deemed to have been acquired:
a. For the partner purchasing it
b. For the managing partner
c. For the firm
d. For creditors
69. Section 15 of the Indian Partnership Act, 1932 deals with:
a. Transfer of partnership property
b. Application of property of the firm
c. Registration of property
d. Dissolution of partnership
70. Subject to contract between the partners, property of the firm shall be used:
a. Exclusively for the purposes of the business
b. For personal benefit of partners
c. For investment in other ventures
d. For distribution annually
71. Section 16 of the Indian Partnership Act, 1932 deals with:
a. Capital contribution
b. Personal profits earned by partners
c. Dissolution of partnership
d. Admission of partners
72. If a partner derives profits from any transaction of the firm or from use of firm property, he must:
a. Retain such profits
b. Share them with managing partners
c. Account for the profit and pay it to the firm
d. Disclose them only annually
73. If a partner carries on a business competing with that of the firm:
a. He may retain profits
b. He must account for and pay such profits to the firm
c. He must share half the profits
d. He is liable only if loss is caused
74. Section 17 of the Indian Partnership Act, 1932 deals with:
a. Registration of firms
b. Rights and duties of partners after changes in the firm
c. Dissolution of partnership
d. Liability of partners for wrongful acts
75. Where a change occurs in the constitution of a firm, the mutual rights and duties of partners in the reconstituted firm:
a. Automatically terminate
b. Remain the same as they were immediately before the change, as far as may be
c. Must be renegotiated in every case
d. Are determined by the Registrar
76. Where a firm constituted for a fixed term continues business after expiry of that term, the mutual rights and duties of partners remain the same as before the expiry:
a. Without any qualification
b. Subject to approval of the Registrar
c. So far as they are consistent with the incidents of partnership at will
d. Only if a fresh agreement is executed
77. Where a firm constituted for particular adventures undertakes additional adventures, the rights and duties of partners in respect of the additional undertakings:
a. Must be determined by a new contract
b. Are the same as those relating to the original adventures or undertakings
c. Are determined by the managing partner
d. Are governed by the Registrar of Firms
78. Section 18 of the Indian Partnership Act, 1932 deals with:
a. Implied authority of partners
b. Agency of partners
c. Registration of firms
d. Dissolution of firms
79. Under Section 18, a partner is the agent of:
a. Other partners individually
b. The firm for the purposes of the business of the firm
c. Only the managing partner
d. Only the Registrar of Firms
80. Section 19 of the Indian Partnership Act, 1932 deals with:
a. Partner's liability for fraud
b. Implied authority of partner as agent of the firm
c. Registration of firms
d. Dissolution of partnership
81. An act of a partner done in the usual way of carrying on the business of the kind carried on by the firm:
a. Binds only the acting partner
b. Binds the firm
c. Requires ratification by all partners
d. Binds only the managing partner
82. The authority of a partner to bind the firm under Section 19 is known as:
a. Express authority
b. Statutory authority
c. Implied authority
d. Delegated authority
83. In the absence of trade usage to the contrary, the implied authority of a partner does NOT empower him to:
a. Purchase goods for the firm
b. Submit disputes relating to business of the firm to arbitration
c. Sell goods of the firm
d. Receive payments on behalf of the firm
84. In the absence of contrary trade usage, the implied authority of a partner does not include the power to:
a. Withdraw a suit filed on behalf of the firm
b. Buy goods for the firm
c. Hire employees for the firm
d. Collect debts due to the firm
85. A partner's implied authority does not empower him to:
a. Admit liability in a suit against the firm
b. Enter into routine contracts for the firm
c. Purchase trading stock
d. Collect money due to the firm
86. In the absence of contrary custom, a partner has no implied authority to:
a. Transfer immovable property belonging to the firm
b. Purchase goods on behalf of the firm
c. Employ agents for business
d. Accept payments for the firm
87. A partner does not have implied authority to:
a. Acquire immovable property on behalf of the firm
b. Sell goods of the firm
c. Collect debts of the firm
d. Enter ordinary business contracts
88. A partner cannot, by virtue of implied authority alone:
a. Enter into partnership with another person on behalf of the firm
b. Purchase goods for the firm
c. Hire employees
d. Borrow money in the ordinary course of business
89. Section 20 of the Indian Partnership Act, 1932 deals with:
a. Extension and restriction of partner's implied authority
b. Dissolution of partnership
c. Registration of firms
d. Admission of partners
90. The partners in a firm may extend or restrict the implied authority of any partner by:
a. Court order
b. Contract between the partners
c. Decision of the Registrar
d. Majority vote alone
91. A restriction on the implied authority of a partner does not affect a third party unless:
a. The act is unlawful
b. The third party knows of the restriction or does not know or believe the person to be a partner
c. The firm is unregistered
d. The partner acts outside India
92. Section 21 of the Indian Partnership Act, 1932 deals with:
a. Emergency authority of partners
b. Registration of firms
c. Dissolution of partnership
d. Admission of partners
93. In an emergency, a partner may take such actions as:
a. Approved by all partners beforehand
b. A person of ordinary prudence would take in his own case under similar circumstances
c. Directed by the Registrar
d. Allowed only by written contract
94. Acts done by a partner in an emergency to protect the firm from loss:
a. Bind the firm
b. Bind only the acting partner
c. Require ratification
d. Are void unless approved later
95. Section 22 of the Indian Partnership Act, 1932 deals with:
a. Admission of partners
b. Mode of doing acts to bind the firm
c. Dissolution of partnership
d. Registration of firms
96. An act done by a partner binds the firm if it is done:
a. Only with written consent of all partners
b. In the firm name or in a manner expressing or implying an intention to bind the firm
c. Only through the managing partner
d. Only after registration of the firm
97. Section 23 of the Indian Partnership Act, 1932 deals with:
a. Effect of admissions by a partner
b. Authority of partners
c. Registration of firms
d. Dissolution of partnership
98. An admission or representation made by a partner concerning the affairs of the firm is:
a. Binding on the firm in all circumstances
b. Evidence against the firm if made in the ordinary course of business
c. Valid only if in writing
d. Valid only with consent of all partners
99. Section 24 of the Indian Partnership Act, 1932 deals with:
a. Effect of notice to acting partner
b. Admission of partners
c. Registration of firms
d. Dissolution of partnership
100. Notice given to a partner who habitually acts in the business of the firm operates as notice to:
a. The managing partner only
b. The Registrar of Firms
c. The firm
d. Only those partners present at the time
101. Notice to an acting partner does not operate as notice to the firm when:
a. The firm is unregistered
b. The notice relates to immovable property
c. It concerns a fraud on the firm committed by or with the consent of that partner
d. The firm has more than two partners
102. Section 25 of the Indian Partnership Act, 1932 deals with:
a. Liability of firm for misapplication of property
b. Liability of a partner for acts of the firm
c. Rights of transferee of partner’s interest
d. Holding out
103. Under Section 25, every partner is liable for acts of the firm:
a. Individually only
b. Jointly with other partners but not severally
c. Jointly with all the other partners and also severally
d. Only to the extent of his capital contribution
104. A partner’s liability for acts of the firm arises in respect of acts done:
a. Before he became a partner
b. After he retires from the firm
c. While he is a partner in the firm
d. Only if he personally participated in the act
105. Section 26 of the Indian Partnership Act, 1932 deals with:
a. Liability of the firm for wrongful acts of a partner
b. Liability of partners for fraud
c. Registration of firms
d. Dissolution of firms
106. The firm is liable for loss or injury caused to a third party by the wrongful act or omission of a partner when:
a. The partner acts privately
b. The partner acts outside the business of the firm
c. The partner acts in the ordinary course of business of the firm or with authority of partners
d. The partner acts without knowledge of other partners
107. If a partner incurs a penalty by wrongful conduct in the ordinary course of the firm’s business:
a. Only the partner is liable
b. The firm is liable to the same extent as the partner
c. The Registrar becomes liable
d. Liability depends on capital contribution
108. Section 27 of the Indian Partnership Act, 1932 deals with:
a. Holding out
b. Liability of firm for misapplication by partners
c. Transfer of partner’s interest
d. Dissolution of firm
109. Where a partner acting within his apparent authority receives money or property from a third party and misapplies it:
a. Only the partner is liable
b. The firm is liable to make good the loss
c. The third party bears the loss
d. The liability depends on consent of other partners
110. If money or property received by the firm in the course of business is misapplied by a partner while in the custody of the firm:
a. Only the acting partner is liable
b. The firm is liable to make good the loss
c. The loss is shared by partners privately
d. No liability arises
111. Section 28 of the Indian Partnership Act, 1932 deals with:
a. Holding out
b. Rights of transferee
c. Dissolution of partnership
d. Registration of firms
112. A person who represents himself or knowingly allows himself to be represented as a partner in a firm is liable as a partner to:
a. Only the Registrar of Firms
b. Anyone who gives credit to the firm relying on that representation
c. Only existing partners
d. Only creditors mentioned in the partnership deed
113. The liability arising from “holding out” applies:
a. Only if the person knew that the representation reached the creditor
b. Whether or not the person knew that the representation reached the person giving credit
c. Only when the firm is registered
d. Only when profits are earned
114. After the death of a partner, continued use of the deceased partner’s name in the firm name:
a. Automatically makes his legal representatives liable
b. Makes his estate liable for all acts of the firm
c. Does not itself make his legal representative or estate liable for acts of the firm after his death
d. Creates a presumption of liability
115. Section 29 of the Indian Partnership Act, 1932 deals with:
a. Holding out
b. Rights of transferee of a partner’s interest
c. Liability of partners for fraud
d. Dissolution of firm
116. A transfer by a partner of his interest in the firm does NOT entitle the transferee during the continuance of the firm to:
a. Receive the share of profits of the transferring partner
b. Interfere in the conduct of the business
c. Accept accounts agreed to by the partners
d. Receive profits assigned to him
117. A transferee of a partner’s interest during the continuance of the firm is entitled only to:
a. Participate in management
b. Inspect the books of the firm
c. Receive the share of profits of the transferring partner
d. Dissolve the firm
118. During the continuance of the firm, the transferee of a partner’s interest:
a. May inspect the books of the firm
b. May demand detailed accounts from partners
c. Must accept the account of profits agreed to by the partners
d. May participate in management decisions
119. If the firm is dissolved or the transferring partner ceases to be a partner, the transferee becomes entitled to:
a. Participate in management
b. Receive the share of the assets of the firm to which the transferring partner is entitled
c. Demand dissolution of the firm
d. Become a partner automatically
120. For the purpose of determining the share of assets of a transferring partner after dissolution, the transferee is entitled:
a. To an account as from the date of dissolution
b. To accounts from the date of formation of the firm
c. To annual accounts only
d. To accounts only if approved by partners
121. Section 30 of the Indian Partnership Act, 1932 deals with:
a. Liability of partners to third parties
b. Admission of minors to the benefits of partnership
c. Dissolution of firm
d. Transfer of partner’s interest
122. Under Section 30, a minor according to the law to which he is subject:
a. May become a full partner in a firm
b. May not be a partner but may be admitted to the benefits of partnership with consent of all partners
c. May become a partner with the consent of the Registrar
d. May automatically become a partner if he contributes capital
123. Admission of a minor to the benefits of partnership requires:
a. Majority consent of partners
b. Consent of all partners for the time being
c. Consent of the Registrar
d. Approval of the Court
124. A minor admitted to the benefits of partnership has a right to:
a. Participate in management of the firm
b. Such share of the property and profits of the firm as agreed upon
c. Dissolve the firm
d. Admit new partners
125. A minor admitted to the benefits of partnership may:
a. Manage the firm’s business
b. Inspect and copy the accounts of the firm
c. Admit new partners
d. Bind the firm by contracts
126. The share of a minor admitted to the benefits of partnership is:
a. Not liable for acts of the firm
b. Liable for the acts of the firm but the minor is not personally liable
c. Personally liable for all acts of the firm
d. Liable only if he participates in management
127. A minor admitted to the benefits of partnership may sue the partners for an account of the firm:
a. At any time
b. Only after attaining majority
c. Only when severing his connection with the firm
d. Only with permission of the Court
128. In a suit filed by a minor for severing connection with the firm, the amount of his share shall be determined:
a. By majority of partners
b. By the Registrar of Firms
c. By valuation as far as possible according to the rules in Section 48
d. By an arbitrator appointed by the Court
129. In such a suit by the minor, the partners may elect:
a. To expel the minor from benefits of partnership
b. To dissolve the firm
c. To appoint a managing partner
d. To transfer the minor’s share
130. A person admitted to the benefits of partnership must give public notice of his election to become or not become a partner:
a. Within one year of attaining majority
b. Within six months of attaining majority or knowledge of admission, whichever is later
c. Immediately upon attaining majority
d. Within three months of attaining majority
131. If such person fails to give public notice within the prescribed six months:
a. He ceases to have any rights in the firm
b. He becomes a partner in the firm automatically
c. His share is forfeited
d. The firm stands dissolved
132. The burden of proving that the person had no knowledge of his admission to the benefits of partnership lies on:
a. The minor
b. The Registrar of Firms
c. The persons asserting that fact
d. The managing partner
133. When such person elects to become a partner, he becomes personally liable to third parties for:
a. Only future acts of the firm
b. All acts of the firm done since he attained majority
c. All acts of the firm done since he was admitted to the benefits of partnership
d. Only acts done after giving notice
134. When such person becomes a partner, his share in the property and profits of the firm:
a. Is re-determined by partners
b. Remains the same as he was entitled to as a minor
c. Is reduced by half
d. Is determined by the Court
135. If such person elects not to become a partner, his rights and liabilities continue as those of a minor:
a. Up to the date he attained majority
b. Up to the date of giving public notice
c. Up to six months after majority automatically
d. Until dissolution of the firm
136. Where such person elects not to become a partner, his share shall not be liable for acts of the firm done:
a. After he attained majority
b. After the date of public notice
c. After six months from majority
d. After dissolution of the firm
137. Where such person elects not to become a partner, he is entitled:
a. To become a partner later without consent
b. To sue the partners for his share of property and profits
c. To dissolve the firm automatically
d. To participate in management temporarily
138. The provisions relating to a minor becoming or not becoming a partner under Section 30 do not affect:
a. Section 27
b. Section 28
c. Section 29
d. Section 31
139. Section 31 of the Indian Partnership Act, 1932 deals with:
a. Retirement of a partner
b. Introduction of a partner
c. Expulsion of a partner
d. Dissolution of firm
140. Subject to contract between the partners and to Section 30, a new partner may be introduced into a firm:
a. With the consent of majority of partners
b. With the consent of all existing partners
c. With the consent of the Registrar of Firms
d. By decision of the managing partner
141. A person introduced as a partner into a firm becomes liable for acts of the firm:
a. From the date of formation of the firm
b. From the date he becomes a partner
c. Only after public notice of admission
d. Only after contributing capital
142. A newly introduced partner is liable for acts of the firm done before his admission:
a. In all cases
b. Only if the partnership deed so provides
c. Not liable for acts done before he became a partner
d. Liable only to third parties
143. Section 32 of the Indian Partnership Act, 1932 deals with:
a. Expulsion of a partner
b. Retirement of a partner
c. Dissolution of firm
d. Transfer of partner’s interest
144. A partner may retire from a firm with:
a. Consent of the majority of partners
b. Consent of all the other partners
c. Approval of the Registrar
d. Court permission
145. A partner may retire in accordance with:
a. A written notice to the Registrar
b. An express agreement between the partners
c. Permission of creditors
d. Approval of majority partners only
146. In a partnership at will, a partner may retire by:
a. Giving oral notice to partners
b. Giving notice in writing to all the other partners
c. Informing the Registrar of Firms
d. Filing a suit for dissolution
147. A retiring partner may be discharged from liability to third parties for acts of the firm done before retirement by:
a. Order of the Registrar
b. Agreement between the retiring partner, the third party, and the partners of the reconstituted firm
c. Decision of the Court
d. Majority decision of partners
148. Such agreement discharging a retiring partner from liability may be:
a. Express only
b. Implied by a course of dealing between the third party and the reconstituted firm
c. Valid only if registered
d. Valid only if approved by the Court
149. Notwithstanding retirement, a partner continues to be liable to third parties for acts of the firm until:
a. The firm is dissolved
b. Public notice of retirement is given
c. The Registrar records the retirement
d. The remaining partners assume liability
150. A retired partner is not liable to a third party who deals with the firm:
a. After public notice only
b. Without knowing that he was a partner
c. Only if the firm is dissolved
d. Only if the firm changes its name
151. Public notice of retirement may be given by:
a. Only the Registrar of Firms
b. Only the continuing partners
c. The retired partner or any partner of the reconstituted firm
d. Only by court order
152. Section 33 of the Indian Partnership Act, 1932 deals with:
a. Retirement of a partner
b. Expulsion of a partner
c. Dissolution of firm
d. Admission of partner
153. A partner may be expelled from a firm:
a. By majority of partners in all cases
b. Only by court order
c. Only in good faith and in exercise of powers conferred by contract
d. By any partner individually
154. The provisions applicable to a retired partner under Section 32 also apply to an expelled partner:
a. Only partially
b. Not at all
c. As if he were a retired partner
d. Only if agreed by partners
155. Section 34 of the Indian Partnership Act, 1932 deals with:
a. Insolvency of a partner
b. Death of a partner
c. Dissolution of firm
d. Expulsion of partner
156. A partner ceases to be a partner on:
a. Filing insolvency petition
b. Date of adjudication as insolvent
c. Date of notice to partners
d. Date of dissolution
157. Where the firm is not dissolved by insolvency of a partner, the estate of such insolvent partner:
a. Remains liable for all acts of the firm
b. Is liable only for prior acts
c. Is not liable for acts of the firm done after adjudication
d. Is liable for future transactions only
158. Where the firm continues after insolvency of a partner, the firm is not liable for acts of the insolvent partner done:
a. Before adjudication
b. After adjudication
c. During insolvency proceedings
d. Before notice to Registrar
159. Section 35 of the Indian Partnership Act, 1932 deals with:
a. Liability of estate of deceased partner
b. Insolvency of partner
c. Expulsion of partner
d. Dissolution of firm
160. Where a firm is not dissolved on death of a partner, the estate of the deceased partner is:
a. Liable for all future acts
b. Not liable for acts of the firm done after his death
c. Liable for acts only with consent
d. Liable only for contractual obligations
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