Law Legal Studies · Commerce Accountancy
Partnership and Business Law
1,007 Questions
Test your knowledge of partnership regulations and business law with these practice questions. The topics include the rights of minor partners, firm dissolution, retirement rules, and public notices. This material is crucial for law exams and legal studies.
Rights of minor partnersPublic notice requirementsFirm dissolution rulesPartner retirementHolding out partner principlePartnership deed provisions
Partnership and Business Law Questions
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2 years
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3 years
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12 years
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30 years
B
Correct answer
Explanation
For an account and a share of profits of a dissolved partnership, the period of limitation is three years from the date of dissolution. It is given under article 5 of the Limitation Act.
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intention
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interest
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design
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object
C
Correct answer
Explanation
Persons are said to be joint tort-feasors when their separate shares in the commission of the tort are done in furtherance of a common design.
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limited to shares in the partnership firm
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unlimited
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decided by the court
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decided by other partners
B
Correct answer
Explanation
Option (2) is correct: The liability of a partner is unlimited for all acts of the firm done, while he is a partner.
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A competent person
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An unmarried woman
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Non-resident Indian
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Alien enemy
D
Correct answer
Explanation
Option (4) is correct: An alien enemy of any native nation with which a domestic nation or government is in conflict cannot become a partner in a partnership firm.
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may be admitted to the benefits of partnership with the consent of all the other partners
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may be admitted to the benefits of partnership with no consent of other partners
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may be admitted to the benefits of partnership with the consent of his parents
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may be admitted to the benefits of partnership with the guarantee of his parents
A
Correct answer
Explanation
Option (1) is correct: A person, who is a minor according to the law to which he is subject, may not be a partner in a firm, but with the consent of all the partners for the time being, he may be admitted to the benefits of partnership.
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not entitled to receive any remuneration
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entitled to receive remuneration with the consent of other partners
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entitled to receive remuneration by an order of the court
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entitled to receive remuneration
A
Correct answer
Explanation
Option (1) is correct: Under Section 13 of the Partnership Act, a partner is not entitled to receive remuneration for taking part in the conduct of the business, but he has a share in the profits.
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ceases to be a partner
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does not cease to be a partner
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ceases to be a partner with the consent of all the other partners
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ceases to be a partner by an order of the court
A
Correct answer
Explanation
Option (1) is correct: When a partner in a firm is adjudicated insolvent, he ceases to be a partner.
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sleeping partner
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nominal partner
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sub-partner
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Not a partner
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20 persons
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15 persons
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10 persons
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30 persons
C
Correct answer
Explanation
Option (3) is correct: According to the Partnership Act, 1932, in a banking business, the number of partners should not exceed 10 persons.
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C is liable to D only.
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C is liable to D jointly with A and B.
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C is not liable to D.
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C is not liable to D jointly with A and B.
B
Correct answer
Explanation
Option (2) is correct: C is not liable for losses, but if any person sues the partnership firm, then all the partners will be liable jointly.
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No suit by an unregistered firm against a third party
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No suit by a partner against the firm for his rights
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A firm cannot set-off a claim
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Suit by a third party against the firm
D
Correct answer
Explanation
Option (4) is correct: A third party can file a suit against an unregistered firm for a breach in contract. However, all the other consequences are applicable to an unregistered firm.
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liable jointly with all the other partners
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liable severally
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not liable
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None of these
A
Correct answer
Explanation
Option (1) is correct: Under Section 25 of the Partnership Act, all the partners are jointly liable for all the acts of a firm.
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the accounts are settled
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the partners' dues are paid off
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a public notice is given
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the registrar strikes off the name
C
Correct answer
Explanation
Option (3) is correct: On dissolution, the partners remain liable till a public notice is given.
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at the age of superannuation
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at the low ebb of capital account
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in accordance with the partnership deed
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on his nominee becoming a partner
C
Correct answer
Explanation
A partner can retire in accordance with the partnership deed.
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any partner
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some of the partners
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none of the partners
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all of the other partners
D
Correct answer
Explanation
Option (4) is correct: Under Section 32 of the Act, a partner may retire with the consent of all of the other partners.