Random Quiz

In which of the following cases, is a firm dissolved as per The Partnership Act, 1932?

• If constituted for a fixed term, by the expiry of that term.

• By the death of a partner

• By the adjudication of partner as insolvent

• All of the above

Registration of the firm is

• Mandatory

• Desirable

• Not compulsory

• Directory

Under Section 10, every partner has the duty to indemnify the firm for any loss caused to the firm by his .................. in the conduct of the business of the firm.

• Negligence

• Wrongful Act

• Fraud

• All of the above

Generally, an introduction of a new partner in a partnership firm would require the consent of ................

• The majority of the partners

• All the partners

• The majority of the partners barring the dormant partners

• The partners having majority share in the firm.

Which statement is correct?

• A partnership firm is a juristic person.

• A partnership firm is a distinct legal entity from its partners.

• A partnership firm is not a distinct legal entity from its partners.

• All the above

Under Section 25 of the Partnership Act, 1932, the liability of the partners for the act of the firm is

• Joint and Several

• Several

• Joint or Several

• Joint

If a partner withdraws from a firm by dissolving it, then

• It is a dissolution and not retirement of a partner

• It is novation and not retirement of partner

• It is retirement of a partner

• None of the above

A and B jointly purchased a tea shop. Each of them contributed half of the expense incurred for pottery and utensils. Then they leased out the shop and shared the rent equally. They are:

• Partners

• Co-owners

• Co-obligants

• Agents of each other

Partnership is the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Does it mean that losses are not shared?

• A minor may be admitted in partnership, only for the profits, but he cannot share in losses

• It also depends on the partnership agreement. A person may share the profits but may not share in losses.

• Share of profits also include losses (negative profits)

• All of the above

Where no provision is made by contract between the partners for the duration of their partnership, or for the determination of their partnership, the partnership is called as:

• Particular Partnership

• Partnership for a fixed term

• Partnership at will

• None of the above