Top 1000+ Solved Fundamentals of Laws and Ethics MCQ Questions Answer
Q. The essential elements of partnership does not include:
a. Partnership should be registered
b. There must be an agreement to share profits of a business
c. There must be mutual agency among partners
d. There must be an association of two or more persons
Q. The partnership relation does not exist when:
a. A creditor taking a share of profits in lieu of interest and part payment of principal.
b. A person receives a share of profit as a part of his remuneration.
c. Share of profits given to workers as bonus.
d. None of the above.
Q. ………….. does not take active part in conduct of the business.
a. Dormant partner
b. Sub-partner
c. Both (a) and (b)
d. Partner by estoppels
Q. The partnership firms becomes an illegal association, when:
a. The number of partners in a banking business exceeds 10
b. The number of partners in a non-banking business exceeds 10
c. The number of partners in a non-banking business exceeds 20
d. Both (a) and (c)
Q. Where the maximum number of partners in a firm carrying on banking business exceeds ten and in anyother firm exceeds twenty, then the partnership becomes a:
a. Unlawful partnership
b. Illegal association
c. Limited liability partnership
d. Large partnership
Q. If Partnership Act, does not define an expression, then the reference shall be had to
a. Indian Contract Act
b. Sale of Goods Act
c. Evidence Act
d. Companies Act
Q. The unrepealed provisions of the Act shall continue to apply to firms, save insofar as they areinconsistent with the express provisions of the Partnership Act.
a. Transfer of Property Act
b. Indian Evidence Act
c. Indian Contract Act
d. Sale of Goods Act
Q. Which of these are not necessary for constituting a partnership?
a. Sharing of business profits
b. Mutual agency
c. Two are more persons
d. Written contract
Q. Which of this is not a valid partnership?
a. Minor admitted to benefits of the partnership
b. Company admitted as a partner
c. Partnership between Indian national & alien friend
d. partnership between two HUFs
Q. To form a partnership, the minimum capital contribution should be:
a. `1 lakh
b. ` 10 lakh
c. ` 1 crore
d. There is no minimum limit
Q. Which is NOT a characteristic of partnership firms?
a. Perpetual succession
b. Unlimited liability of partners
c. Mutual agency
d. Sharing of profits of business
Q. For which of the following purpose is partner ship formed?
a. Political purpose
b. Altruistic purpose
c. Social purpose
d. Business purpose
Q. Which of these sharing arrangements reflects a partnership?
a. By a lender of money to persons engaged or about to engage in any business
b. By a servant or agent as remuneration
c. By a partner who does not actively engage himself in the day to day business affairs
d. By the widow or child of the deceased partner as annuity
Q. To form a partnership, the parties should share
a. Only profits
b. Only losses
c. Both profits and losses
d. Profits and losses but some partners may not share losses