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

Q41. A partnership firm is . . . . . . . by acts of a partner who has been adjudicated insolvent

(A) Not bound
(B) Bound
(C) Independent
(D) Dependent

Answer: Not bound

Q42. Section 30 of the Indian Partnership Act, 1932, applies

(A) Where a partnership is constituted of two persons and one of them dies, and the other admits a minor to the benefits of the business
(B) Where a minor is admitted to the benefits of subsisting partnership
(C) Where a minor is admitted to the benefits of a future partnership
(D) All the above

Answer: Where a minor is admitted to the benefits of subsisting partnership

Q43. The scope of implied authority of a partner under section 19 of the Indian Partnership Act is linked with

(A) The kind or nature of the business
(B) The usual manner of carrying on the business
(C) Both (A) and (B)
(D) Only (B) and not (A)

Answer: Both (A) and (B)

Q44. Distinction between retirement and dissolution was explained by Supreme Court is explained in

(A) CIT v. A. W. Figgis and Co.
(B) Muralidhar v. CIT
(C) CIT v. Shah Mohan Das Sadhuram
(D) None of the above

Answer: CIT v. A. W. Figgis and Co.

Q45. Where the notice of dissolution of the firm does not mention any date as the date of dissolution, the firm shall be dissolved on the date

(A) On which the notice is sent
(B) On which the notice is communicated
(C) Which is decided by the partners
(D) Fixed by the court

Answer: On which the notice is communicated

Q46. In the absence of any agreement, the interest to partners on the amount of loan advanced to the firm, is allowed at

(A) 8% per annum
(B) 6% per annum
(C) 4% per annum
(D) Market rate

Answer: 6% per annum

Q47. Section 49 of the Indian Partnership Act, 1932 provides for

(A) Payment of separate debts of the partners in priority to payment of firm debts out of the partnership assets
(B) Payment of firm debts in priority to payment of separate debts of the partners out of the partnership assets
(C) Payment of firm debts and the separate debts of the partners simultaneously, out of the partnership assets
(D) Payment of firm debts and the separate debts of the partners out of the partnership assets as per the directions of the court

Answer: Payment of firm debts in priority to payment of separate debts of the partners out of the partnership assets

Q48. The right to rescind the contract of partnership

(A) Is an absolute one and cannot be lost
(B) Is lost if the contract is not repudiated within a reasonable time of discovery of fraud
(C) Is lost if the contract is not repudiated within one year of discovery of fraud
(D) Is lost if the contract is not repudiated within 3 years of discovery of fraud

Answer: Is lost if the contract is not repudiated within a reasonable time of discovery of fraud

Q49. Admission made by a partner, in connection with the affairs of the firm and in the ordinary course of business of the firm, by virtue of section 23 of the Indian Partnership Act, 1932, are

(A) Relevant and create estoppel
(B) Relevant and conclusive
(C) Relevant, create estoppel and are conclusive
(D) Neither (A) nor (C)

Answer: Relevant and create estoppel

Q50. Can a minor be a partner of a firm

(A) No
(B) No but can be admitted to the benefits partnership
(C) Yes
(D) Yes but with the consent of all the partners

Answer: No but can be admitted to the benefits partnership