Test: General Nature Of A Partnership- 1


45 Questions MCQ Test Mercantile Law for CA CPT | Test: General Nature Of A Partnership- 1


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Attempt Test: General Nature Of A Partnership- 1 | 45 questions in 45 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Mercantile Law for CA CPT for CA Foundation Exam | Download free PDF with solutions
QUESTION: 1

Prior to enactment of The Indian Partnership Act, 1932, the law relating to partnership in India were embodied in

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QUESTION: 2

A partnership firm comes into existence by agreement between all the partners, and such agreement should be

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QUESTION: 3

The maximum number of partners in a firm carrying on banking business is_________.

Solution:

As per the Companies Act, 2013 the maximum number of members in a partnership firm is 100. The minimum number of partners should be atleast 2. The maximum number of members for a firm carrying banking business is 10.

QUESTION: 4

When a minor attains majority, from which date is he deemed to be a partner with unlimited liability?

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QUESTION: 5

A person when himself told that he is a partner of the firm, then he is a: 

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QUESTION: 6

Failure by a minor to give public notice within six months will have the following effect: 

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QUESTION: 7

D and J purchased 100 bales of cotton to be sold on Joint Account. They agreed to share profit and losses equally. They are: 

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QUESTION: 8

 Partnership agreement can be:

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QUESTION: 9

Limited Partnership is found in:

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QUESTION: 10

Which of the following is not a kind of partner: 

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QUESTION: 11

The partnership defines business in an: 

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QUESTION: 12

__________Partner does not take active part in the conduct of the business: 

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 Dormant/Sleeping Partner
This is a partner that does not participate in the daily functioning of the partnership firm, i.e. he does not take an active part in the daily activities of the firm. ... He will continue to share the profits and losses of the firm and even bring in his share of capital like any other partner.

QUESTION: 13

 Which of these is a valid partnership?

Solution:

Correct Answer :- c

Explanation : In a Partnership firm, the maximum number of members is 20 in general business and 10 in banking firms. In a Joint Stock Company, the maximum number of members is 50 in a private company and there is no maximum limit in a public company.

QUESTION: 14

 Which of these can be admitted as a partner?

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QUESTION: 15

Johnson is an employee of ABC Ltd. He is entitled to a salary of Rs. 8,00,000 and entitled to a commission of 20%. If the profit in a year is Rs. 1 crore, then Johnson is: 

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QUESTION: 16

 Sleeping partner is: 

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QUESTION: 17

A partnership can be formed with: 

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QUESTION: 18

What is the true test of partnership?

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The truest test of a partnership is the existence of a Mutual Agency.

QUESTION: 19

A partner who contributes capital in the firm but does not actively participates in the working of the business is called:

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QUESTION: 20

A partnership firm can raise its capital: 

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QUESTION: 21

Which one of the following statements is true.

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QUESTION: 22

Johnson is employed as a controller finance in a partnership firm ABC & co. Johnson is entitled to a monthly salary of R.s 2 lacs and 20% of the profit only if profits of the firm exceed Rs. 1 crore in a year. State whether Johnson be called: 

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QUESTION: 23

A and B Enter into an agreement to work together for a Construction project where in A will receive all the payments including profits and shall pay Rs. 300 per day as wages to B. State weather A and B are:

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QUESTION: 24

Failure by a minor to give public notice within six months will have following effect.

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QUESTION: 25

What is a Partnership?

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QUESTION: 26

In case of admission of a partner, how much amount should a partner bring as his capital?

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QUESTION: 27

A partnership formed for a fixed period, continues after the fixed period, the partnership is known as 

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QUESTION: 28

Partnership agreement must be in ______.

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QUESTION: 29

 Sub partnership arise between.

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QUESTION: 30

 A partnership firm can raise its capital:

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QUESTION: 31

The maximum number of partners in a firm carrying on banking business is_________.

Solution:
  1. According to section 11 of the Companies Act, 1956 a partnership for a banking business must not have more than 10 partners and for other businesses, it must not exceed 20.
QUESTION: 32

Which of the following persons may be admitted as a partner in a partnership firm:-

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QUESTION: 33

According to the Indian Partnership Act, 1932 a partnership is valid where:

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QUESTION: 34

D and J purchased 100 bales of cotton to be sold on Joint Account. They agreed to share profit and losses equally. They are: 

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QUESTION: 35

The written agreement of partnership is most commonly referred to as:

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QUESTION: 36

Which of the following is not a kind of partner: 

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QUESTION: 37

A partner who does no contribute capital in the firm and does not participate actively in the working of the business of the firm but allows the firm to use his name along with goodwill is called:

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QUESTION: 38

The term company is defined under which sec of the Act?

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QUESTION: 39

 To constitute a partnership agreement, it: 

Solution:

The partnership is an agreement between two or more persons who decided to do business and share its profits and losses. To have a legal relationship between the partners, the partnership agreement becomes the basis. The agreement can be in written form or oral form. An oral agreement is equally valid.

QUESTION: 40

In the absence of specific provisions in the Partnership Deed, every partner is bound to contribute in ________ to the losses of the firm: 

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QUESTION: 41

 Partnership agreement must be in ______.

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QUESTION: 42

Under the Indian Partnership Act, 1932, in the absence of an agreement among the partners, profits of a firm shall be divided in the ratio of : 

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QUESTION: 43

Which of the following statements is not correct in relation to Partnership?

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QUESTION: 44

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

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QUESTION: 45

Liability of partner is __________.

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