Tag: registration of partnership

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Questions Related to registration of partnership

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

The unregistered firm does not have a ____________.

  1. right to file a suit on third party

  2. right to acquire property

  3. right to transfer property

  4. all of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The primary disability of an unregistered firm is the inability to file a suit against a third party to enforce contractual rights.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Which of the following is not effected due to Non-registration of a firm?

  1. Suit by third party

  2. Official receiver's right to recover the property of insolvent partner

  3. Partner's right to suit for dissolution of firm

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Non-registration does not affect certain rights, such as a third party's right to sue the firm, the official receiver's right to recover property, or a partner's right to sue for dissolution. Therefore, all these are unaffected.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

In case of Unregistered Firms, public notice is given in the following manner ____________.

  1. publishing the Notice in the Official Gazette.

  2. publishing the Notice in one vernacular newspaper circulating in the district where the Firm's principal place of business is situated.

  3. either (a) or (b).

  4. both (a) and (b).
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Indian Partnership Act, public notice for an unregistered firm requires both publication in the Official Gazette and in at least one vernacular newspaper circulating in the district where the firm's principal place of business is situated. Therefore, both conditions must be met.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Which of the following does not require public notice in case of a Registered Firm?

  1. Admission of a Partner

  2. Retirement of a Partner

  3. Expulsion of a Partner

  4. Dissolution of the Firm.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Admission of a new partner does not require a public notice under the Indian Partnership Act, as it does not inherently change the firm's legal status or the liability of existing partners toward third parties in the same way as retirement, expulsion, or dissolution.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

When a partnership is not registered, a partnership firm is___________.

  1. deemed to be an illegal association and is allowed to carry on business.

  2. allowed to carry on business, subject to payment of penalty.

  3. allowed to carry on business, subject to certain disabilities.

  4. allowed to continue the business.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An unregistered partnership firm is not illegal; it is permitted to carry on business. However, it faces specific legal disabilities, such as the inability to file a suit against third parties to enforce contractual rights.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

As per Section $(2)$b of the Act the term "business" includes every __________________.

  1. Trade

  2. Trade and Occupation

  3. Trade, occupation and profession

  4. Trade, occupation, profession and art
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Section 2(b) of the Partnership Act defines 'business' to include 'trade, commerce and profession'. The most comprehensive option covering all three aspects is 'Trade, occupation and profession' (trade and commerce are synonymous in this context).

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Sharing of profits is _________ evidence of the existence of partnership.

  1. Not a conclusive

  2. Prima facie

  3. Acceptable

  4. Collaborative
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Sharing of profits is considered prima facie evidence of a partnership, meaning it is sufficient to establish the existence of a partnership unless proven otherwise by other facts.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Which of the following act is within the implied authority?

  1. Enter into partnership on behalf of the firm

  2. Submit to arbitration, a dispute relating to the business of the firm

  3. Pledging goods of the firm as security

  4. Open a bank account on behalf of the firm in the partner's own name
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Pledging goods of the firm as security is generally considered within the implied authority of a partner in the ordinary course of business, whereas arbitration and opening bank accounts in personal names are typically excluded.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Which of the following act is within the implied authority?

  1. Acquire immovable property on behalf of the firm

  2. Borrowing money on behalf of the firm

  3. Enter into partnership on behalf of the firm

  4. Transfer immovable property belonging to the firm
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Borrowing money on behalf of the firm is a standard act within the implied authority of a partner to conduct the firm's business, unlike acquiring or transferring immovable property, which usually requires express authority.