Top 1000+ Solved Fundamentals of Laws and Ethics MCQ Questions Answer
Q. According to section 31 of the Act, subject to the contract between the partners and to the provisions of section 30, no person shall be introduced as a partner into a firm:
a. Without the consent of majority of partners
b. Without the consent of all the existing partners
c. Without the consent of Registrar of Firms.
d. (a) and (c)
Q. If a partner is adjudicated insolvent which of the following are the consequences?
a. Ceases to be a partner in the firm on the date the order of adjudication is made.
b. The estate of the insolvent partner is not liable for the act of the firm even after the date of order of adjudication
c. The firm stands dissolved on the date of adjudication unless there is a contract to the contrary
d. All the above
Q. A partner may not be expelled from the firm by any majority of partners unless:
a. The terms of partnership agreement confer the power to expel a partner
b. The expulsion is made by a majority of the partners of the firm
c. The decision of expulsion is made by all the partners in good faith
d. All the above
Q. Unless there is a contract to the contrary, a firm is automatically dissolved on:
a. The expiry of fixed term
b. Death of a partner
c. Insolvency of a partner
d. All of the above
Q. Under Section 36 of this Act an outgoing partner may carry on business competing with that of the firm and he may advertise such business, but, subject to contract to the contrary he may not
a. Use the firm name
b. Represent himself as the partner of the firm
c. Solicit the customers who were dealing with the firm before he ceased to be a partner
d. All of the above
Q. Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he will not carryon any competing business, such an agreement will be valid if:
a. Such restraint is in respect of carrying of any business similar to that of the firm
b. Such agreement is made by the partners beforehand i.e. well in advance
c. Such agreement is made without any specific reference to time period.
d. Such agreement is made without reference to local limits
Q. A notice in writing by one partner must be given to all the partners of the firm in case of:
a. Dissolution on the happening of contingencies
b. Dissolution of partnership at will
c. Dissolution by court
d. Compulsory dissolution
Q. The following is a ground for dissolution of partnership by the Court:
a. Insanity of a partner
b. Incapacity of a partner to perform his duty as a partner
c. Wilful misconduct by a partner likely to affect prejudicially the carrying on of the business
d. All the above
Q. In settling the account of the firm after dissolution, the assets of a firm are to be applied in paying
a. Joint debts to third parties
b. Advances of each partner
c. To each partner what is due from the firm in respect of capital
d. All of the above
Q. The partners authority to act for the firm and to bind their co-partners continues even after the dissolutionof the firm:
a. To wind up the affairs of the firm
b. To complete the unfinished transactions
c. Both of above
d. None of the above
Q. A public notice under the Partnership Act is given according to section 72 in the following cases:
a. Admission of new partner
b. Retirement or expulsion of a partner
c. Minor attaining majority
d. All the above
Q. Which of the following is not a mode of retirement of partner?
a. Retirement with other partners' consent
b. Retirement in accordance with an express agreement
c. In case of a partnership at will by giving written notice of his intention to retire
d. Retirement on attaining the age of superannuation
Q. In case of partnership at will, a retiring partner has to give a written notice —
a. To all the partners
b. To all the active partners
c. To the firm
d. To the Registrar of Firms
Q. Retiring partner continues to remain liable to third parties for acts of the firm :—
a. Until public notice is given of the retirement.
b. From the date of retirement
c. Upto the close of the financial year in which he retires.
d. So long as the firm uses his name
Q. To avoid liability to third parties, public notice of retirement should be given. Such public notice must be given—
a. By retired partner only
b. By any partner of the reconstituted firm
c. Either (a) or (b)
d. Neither (a) nor (b)