Introducing our Indian Partnership Act in Law Top 100 MCQ with Free Exam! The Indian Partnership Act Law governs the formation and operation of partnerships in India, providing guidelines for the rights and duties of partners, as well as the registration and dissolution of partnerships.

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Indian Partnership Act Law 100 MCQ With Free Exam SET:-1

Q1. Section 68 of the Indian Partnership Act, 1932, lays down

(A) The rules of procedure
(B) The rules of evidence
(C) The rules of adjective law
(D) None of the above

Answer: The rules of evidence

Q2. When the firm is named after the retiring partner, the retiring partner has a right to

(A) Set up a precisely similar business under the same name
(B) Set up a precisely similar business but not under the same name
(C) Set up a precisely similar business under a new name which suggests a connection with the firm he has left
(D) Either (B) or (C)

Answer: Set up a precisely similar business but not under the same name

Q3. Section 16 of the Indian Partnership Act, 1932 is, ‘subject to’

(A) The agreement between the partners
(B) The provisions of the Act
(C) Both (A) and (B)
(D) Only (B) and not (A)

Answer: The agreement between the partners

Q4. Where a contract between the partners provides for the mode of dissolution, and the firm is dissolved in accordance with that subsisting contract, such a dissolution of firm is called

(A) Dissolution by agreement under section 40 of the Act
(B) Dissolution by notice under section 43 of the Act
(C) Compulsory dissolution under section 41 of the Act
(D) Dissolution by operation of law under section 42 of the Act

Answer: Dissolution by agreement under section 40 of the Act

Q5. The Doctrine of Holding Out is mentioned in:

(A) Section 25 of the Indian Partnership Act
(B) Section 28 of the Indian Partnership Act
(C) Section 29 of the Indian Partnership Act
(D) None of the above

Answer: Section 28 of the Indian Partnership Act

Q6. Under section 55(1) of the Indian Partnership Act, 1932, the goodwill as an asset of the firm can be sold

(A) Alongwith the other property of the firm
(B) Separately from the other property of the firm
(C) Either (A) or (B)
(D) Only (B) and not (C)

Answer: Either (A) or (B)

Q7. Section 29 of the Indian Partnership Act, 1932, provides for certain rights of the transferee, of the partner’s interest, in the firm

(A) While the firm is a going concern
(B) When the firm is dissolved
(C) Both (A) and (B)
(D) Only (A) and not (B)

Answer: Both (A) and (B)

Q8. The outgoing partner, where the partnership business is continued by other partners without a final settlement of accounts, under section 37 of the Act, the outgoing partner is entitled to interest on the unpaid capital, at the rate of

(A) 6% per annum
(B) 9% per annum
(C) 12% per annum
(D) As decided by the partners

Answer: 6% per annum

Q9. Under section 34 of the Indian Partnership Act, 1932, on adjudication of a partner as insolvent, the partnership firm

(A) Stands dissolved automatically
(B) Does not dissolve at all
(C) May or may not dissolve depending on the contract between the partners
(D) Only (A) and not (B) or (C)

Answer: May or may not dissolve depending on the contract between the partners

Q10. In the absence of a public notice of the fact of dissolution of the firm, the authority of partners

(A) Stands determined between the partners as well as publicly
(B) Does not stand determined between the partners nor publicly
(C) Stands determined between the partners but publicly it continues
(D) Stands determined publicly, but continues between the partners

Answer: Stands determined between the partners but publicly it continues