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

Q21. Registration of Firm does not create Partnership, but is only the evidence of Partnership:

(A) True
(B) Partly True
(C) False
(D) Partly False

Answer: True

Q22. If several persons are partners in a firm and one of them agrees to share the profits devised by him with a stranger, the agreement, as per the law laid down in Murlidhar v. I. T. Commissioner, AIR 1967 SC 383,

(A) Makes the stranger a partner in the original firm
(B) Does not make the stranger a partner in the original firm
(C) Makes the stranger a partner in the original firm for limited purposes
(D) Makes the stranger a partner in the original firm in case of losses

Answer: Does not make the stranger a partner in the original firm

Q23. The scope of the apparent authority of a partner is

(A) The same as implied authority
(B) Wider than the implied authority
(C) Narrower than the implied authority
(D) Either (A) or (C)

Answer: Wider than the implied authority

Q24. The provision related to the liability of a firm for the wrongful acts of for the torts is contained

(A) Under section 26
(B) Under section 28
(C) Under section 30
(D) Under section 29

Answer: Under section 29

Q25. The property of the firm includes all property

(A) Acquired by or for the firm
(B) For the purposes or in the course of business of the firm
(C) Property purchase with money belonging to the firm
(D) All the above

Answer: For the purposes or in the course of business of the firm

Q26. The type of dissolution described under section 42 of the Indian Partnership Act, 1932, is

(A) Contingent dissolution
(B) Compulsory dissolution
(C) Dissolution by the court
(D) Dissolution by notice

Answer: Contingent dissolution

Q27. A firm consists of X, Y and Z. A who is not a partner, makes a representation to B that he is also a partner and on the faith of this representation B gives credit to the firm.

(A) B can make A liable on the basis of holding out
(B) A is estopped from denying that he is a partner in the firm
(C) X, Y and Z will be liable for A’s act
(D) Both A and B

Answer: Both A and B

Q28. In which of the following cases a Set Off can be claimed ?

(A) A’ owes the partnership firm of ‘B’ & ‘C’ Rs. 1000. ‘B’ dies leaving ‘C’ surviving. ‘A’ sues. ‘C’ for a debt of Rs. 1500 due in his separate character. ‘C’ wants to set off the debt of Rs. 1000
(B) ‘A’ sues ‘B’ for Rs. 20,000. ‘B’ wants to set off the claim for damages for breach of contract for specific performance
(C) Both ‘A’ and ‘B’
(D) None of the above

Answer: A’ owes the partnership firm of ‘B’ & ‘C’ Rs. 1000. ‘B’ dies leaving ‘C’ surviving. ‘A’ sues. ‘C’ for a debt of Rs. 1500 due in his separate character. ‘C’ wants to set off the debt of Rs. 1000

Q29. The most important feature of a ‘partnership at will’ is:

(A) Sharing of losses
(B) Registration not needed
(C) Easy dissolubility
(D) Utmost Transparency

Answer: Easy dissolubility

Q30. Under section 44(c) of the Indian Partnership Act, 1932, the misconduct of a partner to order dissolution of a firm must be

(A) Such which is likely to affect the business prospects of the firm
(B) The one connected with the business of the firm
(C) Both (A) and (B)
(D) Either (A) or (B)

Answer: Either (A) or (B)