Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 2 - Business Laws and Business Correspondence and Reporting - PART 1 - BUSINESS LAW - Chapter 3: THE INDIAN PARTNERSHIP ACT,1932 - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1 Mr. Samarth retires from the partnership firm without giving public notice and his name continues to be used on letterhead of the firm. Mr. Samarth is ________ in the case of repayment of loan to creditors.

  1. liable as a partner.
  2. not liable as a partner
  3. responsible.
  4. liable as a retiring partner.

Answer: 1

Q:2  The “dormant partner” of the firm is:

  1. not required to give notice of his retirement.
  2. required to give notice of his retirement
  3. not liable to the third parties for all act of the firm.
  4. does not share profits and losses.

Answer: 1

Q:3 The authority of a partner to bind the firm for his acts as contained in section 19 of the Partnership Act is known as:  

  1. Express authority
  2. Legal authority
  3. Implied authority
  4. Managerial authority

Answer: 3

Q:4  In case of transfer of share in a partnership firm by one partner to any third party give such third party entitlement:

  1. to interfere with the conduct of the business.
  2. to require accounts.
  3. to receive the share of the profits of the transferring partner as agreed by the partners.
  4. to receive the share of the profits of the transferring partner whether or not agreed by the partners.

Answer: 3

Q:5 A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners. Such dissolution is known as ________________.  

  1. Dissolution by contract.
  2. Dissolution by agreement.
  3. Dissolution by will.
  4. Dissolution of Partnership.

Answer: 2

Q:6  The statement for the purpose of registration under Section 58(1) of Indian Partnership Act, 1932 can be signed by:

  1. Any one partner of the Firm
  2. Legal heirs of all partners of the Firm
  3. All the partners or by their agents specially authorised in this behalf
  4. Agents of all partners of the Firm

Answer: 3


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