Top 1000+ Solved Fundamentals of Laws and Ethics MCQ Questions Answer
Q. Upon dissolution, the firm's assets after settlement of the debts of the firm to third parties and partners' Loans, shall then be applied in —
a. Payment of debts of the firm
b. Advances of each partner
c. Payment of partner's capital
d. Distribution to partners in their Profit Sharing Ratio
Q. After a firm is dissolved, every partner or his representative may restrain any other partner or his representative from carrying on similar business in the firm's name or by using firm's property for own benefit, until:
a. The affairs of the firm are completely wound up
b. Dissolution of the firm
c. Date of public notice of dissolution
d. Date of signing of dissolution deed
Q. When goodwill of the firm is sold upon dissolution, and a partner carries on a competing business, whichof the following is permissible?
a. Use of firm's name
b. Holding out as carrying on the business of the firm.
c. Soliciting the custom of the firm's customers/suppliers et
d. None of the above
Q. Public notice in case of a firm is not required in case of:
a. Admission of a partner
b. Retirement of a partner
c. Expulsion of a partner
d. Dissolution of the firm
Q. Public notice is required to be given in the case
a. admission of minor
b. exercising option to continue or not, on attainment of majority by the minor
c. death of a partner
d. retirement by sleeping partner
Q. When goodwill of the firm, the selling partners may agree with the buyer that they will not carry on similar business, within a specified period or within specified local limits. Such agreement in restraint of trade shall be :
a. Valid, if the restrictions imposed are reasonable
b. Valid (whether restrictions are reasonable or not)
c. Void
d. Voidable
Q. Public Notice under the Partnership Act, is given in the following manner:
a. Serving a copy of the Notice to the Registrar of firms
b. Publishing the Notice in the Official Gazette
c. Publishing the Notice in one vernacular newspaper circulating in the district where the firm's principal place of business is situated
d. All of the above
Q. Identify the incorrect statements: (1) When a firm is constituted for a fixed duration it cannot be dissolved before the expiry of that duration. (2) A partnership at will can be dissolved by the wish of even a single partner. (3) When a partner of a firm becomes lunatic, the firm dissolves automatically. (4) Even after dissolution, partners of a firm continue to be liable for acts of the firm until the affairs of the firm are finally wound up. Code:
a. 1,2 and 3
b. 1,3 and 4
c. 1,2 and 4
d. 2, 3 and 4
Q. A, B and C are partners of an unregistered firm. D owns this firm ` 1000 on a contract. The firm filed a suitagainst D the suit is dismissed for non-registration of the firm. The firm is registered later on. In this case which one of the following statements is MOST appropriate.
a. The firm can successfully bring the suit against D
b. Registration must have been effected by the firm, before a suit is filed in the court
c. The firm cannot file suit against D
d. None of the above
Q. X, Y and Z are partners in a firm. X, without the authority of Y and Z buys certain shares in his name out ofpartnership money. Will 'shares' constitute partnership property?
a. Yes
b. No
c. Can't say
d. Depends on the facts of the case
Q. A, B and C are partners. C is a sleeping partner who is not known to the creditors. C retires without givingpublic notice of his retirement. Is C liable for subsequent debts incurred by A and B.
a. No, since he is a sleeping partner
b. Yes, since public notice of retirement must be given
c. Difficult to say
d. None of the above
Q. The Negotiable Instruments Act, 1881 applies to
a. the whole of India
b. the whole of India except the State of Jammu and Kashmir
c. those states as notified by the Union Government from time to time in the Official Gazette
d. the whole of India except the State of Jammu and Kashmir and the North- Eastern States
Q. The Negotiable Instruments Act, 1881 came into force on
a. 9th December, 1881
b. 19th December, 1881
c. 1st March, 1882
d. none of the above
Q. The undertaking contained in a promissory note, to pay a certain sum of money is
a. Conditional
b. Unconditional
c. may be conditional or unconditional depending upon the circumstances
d. none of the above