Top 1000+ Solved Fundamentals of Laws and Ethics MCQ Questions Answer
Q. A partner has an implied authority to bind a firm by his act if he:
a. Acquires immovable property on behalf of the firm
b. Opens a banking account on behalf of the firm in his own name
c. Withdraws a suit or proceeding filed on behalf of the firm
d. None of the above
Q. The liability of a minor partner is limited to the extent of:
a. His share in the firm
b. His personal assets
c. His share in the firm as well as his personal assets
d. He is not liable
Q. A minor who is admitted to the benefit of partnership:
a. Is entitled to such share of property and of the profits of the firm as may be agreed upon.
b. Has a right to have access to and inspect and copy any of the accounts of the firm.
c. He can sue for an account and profits when he severe his connection from the firm.
d. All the above
Q. Subject to contract between the partners, a partner does not have any one of the following rights:
a. Right to receive remuneration
b. Right to share profits
c. Right to take part in the business
d. Right to claim interest on capital
Q. The authority of a partner to bind the firm for his acts as contained in section 19 of the Partnership Act isknown as:
a. Express authority
b. Legal authority
c. Implied authority
d. Managerial authority
Q. An act done by a partner is binding on the firm if it is done in the name of:
a. The partners own name
b. God
c. Firm
d. Law
Q. A partner can bind a firm by his act if he:
a. Submits a dispute to arbitration
b. Withdraws suit or proceeding filed on behalf of the firm
c. Transfer immovable property belonging to the firm
d. Buys goods on behalf of the firm
Q. For ordinary business matters the decisions in the firm are taken on the basis of :
a. Decision of majority of partners
b. Unanimous decision of partners
c. 2/3 majority
d. 1/3 majority
Q. Which of the following statements is incorrect?
a. A partner is not an agent of other partners
b. On becoming major, the liability of a minor admitted to the benefits of partnership and now becoming a partner becomes unlimited from the date of majority
c. Partners can change the nature of the business of the firm by majority decision ; (d)
d. All the above
Q. When a minor is admitted to the benefit of the partnership, which of the following statements is false:
a. Such minor's share is liable for the acts of the firm
b. The minor is also personally liable
c. The minor has a right to share in the property and profits of the firm
d. The minor cannot sue for the accounts if intends to continue in the firm
Q. The partners take decisions on the basis of majority in:
a. All matters
b. Ordinary matters
c. Fundamental matters
d. No matters since unanimous consent is required
Q. An unregistered partnership:
a. Can sue on matters arising otherwise than out of contract
b. Can sue on matters arising out of contract
c. Cannot be sued
d. Can sue and be sued
Q. Every partner has a right to have access to and inspect and copy any of the books of account of the firm.
a. During the continuation of the partnership
b. During the dissolution proceedings
c. After dissolution
d. All the above
Q. Where a partner is entitled to interest on the capital subscribed such interest shall be payable.
a. Only out of profits
b. Out of capital in case of loss
c. Out of borrowings
d. Out of sale of partnership assets
Q. Subject to contract between the partners, and pursuant to section 13 of the Indian partnership, thefollowing statement is correct:
a. Partner is not entitled to interest on the capital subscribed by him
b. Partner is not entitled to interest on the advance made over and above the share of capital
c. Partner is not entitled to remuneration for taking part in the conduct of the business
d. All the above