McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 651. |
Which of the following is a valid partnership |
| A. | Partnership between kartas of two Hindu Joint Families |
| B. | Partnership between two Hindu Joint Family. |
| C. | Partnership between a Hindu Joint Family and firm |
| D. | Both (b) and (c) |
| Answer» A. Partnership between kartas of two Hindu Joint Families | |
| 652. |
The relation of partnership arises from contract and not from status and in particular the Indian Partnership Act does not apply to the family business carried on by: |
| A. | Cutchi-Memons |
| B. | Christians |
| C. | Burmese Buddhist husband and wife |
| D. | Mohammedans |
| Answer» C. Burmese Buddhist husband and wife | |
| 653. |
A partnership for which no period or duration is fixed under the Indian Partnership Act is known as : |
| A. | Unlimited partnership |
| B. | Co-ownership |
| C. | Particular partnership |
| D. | Partnership at will |
| Answer» D. Partnership at will | |
| 654. |
For constituting a partnership within the meaning of section 4 of the Indian Partnership Act,1932. |
| A. | There has to be a business |
| B. | The business must be lawful |
| C. | It may be temporary or permanent |
| D. | All the above |
| Answer» D. All the above | |
| 655. |
In determining whether a group of persons is OR is not a firm, regards shall be had to : |
| A. | Real relation between the parties |
| B. | All relevant facts taken together |
| C. | Legal relation between the parties |
| D. | Both (a) and (b) |
| Answer» D. Both (a) and (b) | |
| 656. |
The minimum number of persons required for a partnership is: |
| A. | 2 |
| B. | 5 |
| C. | 10 |
| D. | 20 |
| Answer» A. 2 | |
| 657. |
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 |
| Answer» A. Partnership should be registered | |
| 658. |
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. |
| Answer» D. None of the above. | |
| 659. |
………….. 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 |
| Answer» C. Both (a) and (b) | |
| 660. |
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) |
| Answer» D. Both (a) and (c) | |
| 661. |
Where the maximum number of partners in a firm carrying on banking business exceeds ten and in any other firm exceeds twenty, then the partnership becomes a: |
| A. | Unlawful partnership |
| B. | Illegal association |
| C. | Limited liability partnership |
| D. | Large partnership |
| Answer» B. Illegal association | |
| 662. |
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 |
| Answer» A. Indian Contract Act | |
| 663. |
The unrepealed provisions of the Act shall continue to apply to firms, save insofar as they are inconsistent 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 |
| Answer» C. Indian Contract Act | |
| 664. |
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 |
| Answer» D. Written contract | |
| 665. |
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 |
| Answer» D. partnership between two HUFs | |
| 666. |
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 |
| Answer» D. There is no minimum limit | |
| 667. |
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 |
| Answer» A. Perpetual succession | |
| 668. |
The maximum number of persons permissible for a valid partnership for doing Banking business is: |
| A. | 2 |
| B. | 10 |
| C. | 15 |
| D. | 20 |
| Answer» B. 10 | |
| 669. |
For which of the following purpose is partner ship formed? |
| A. | Political purpose |
| B. | Altruistic purpose |
| C. | Social purpose |
| D. | Business purpose |
| Answer» D. Business purpose | |
| 670. |
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 |
| Answer» C. By a partner who does not actively engage himself in the day to day business affairs | |
| 671. |
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 |
| Answer» D. Profits and losses but some partners may not share losses | |
| 672. |
Where no time is expressly stated for its duration and there is no contract to fix the duration, the partnership may be terminated at a moment's notice by the other party. This partnership is called - |
| A. | Joint Venture |
| B. | Partnership at will |
| C. | Particular partnership |
| D. | Co-partnership |
| Answer» B. Partnership at will | |
| 673. |
When a partner of a firm agrees to share his own share of profits with an outsider, it called: |
| A. | Sub-partnership |
| B. | Co-partnership |
| C. | Undisclosed partnership |
| D. | Profit sharing scheme |
| Answer» A. Sub-partnership | |
| 674. |
Which of the parties may be admitted as a partner? |
| A. | Person of unsound mind |
| B. | Minor |
| C. | Alien enemies |
| D. | An insolvent |
| Answer» B. Minor | |
| 675. |
A new partnership may be formed by the following persons: |
| A. | One major and all other minors |
| B. | One minor and minimum two other majors. |
| C. | Minimum two majors and minor only admitted to the benefits of firm |
| D. | One minor and another minor |
| Answer» C. Minimum two majors and minor only admitted to the benefits of firm | |
| 676. |
Where the goodwill of the firm is sold after dissolution, a partner may carry on a business, competing with that of the buyer and he, subject to the agreement between the buyer and him self, may not: |
| A. | Use the firm name |
| B. | Represent himself as carrying on the business of the firm |
| C. | Solicit the customers of the old firm. |
| D. | All the above |
| Answer» D. All the above | |
| 677. |
Out of the following statements which is true- |
| A. | A sleeping partner is also liable to the third parties |
| B. | Law of partnership is an extension of the law guarantee |
| C. | The registration of firm is compulsory |
| D. | Partnership has a separate legal entity |
| Answer» A. A sleeping partner is also liable to the third parties | |
| 678. |
Registration of the firm under the Partnership Act is: |
| A. | Optional |
| B. | Obligatory |
| C. | Compulsory |
| D. | Necessary |
| Answer» A. Optional | |
| 679. |
A partnership firm has to be registered with: |
| A. | Director of firms |
| B. | Registrar of firms |
| C. | Registrar of companies |
| D. | Competent court |
| Answer» B. Registrar of firms | |
| 680. |
In case of a unregistered partnership firm |
| A. | A partner cannot file a suit against the firm |
| B. | A partner cannot file a suit against any partner of the firm |
| C. | The firm cannot file a suit against third parties to enforce a contract |
| D. | All the above |
| Answer» D. All the above | |
| 681. |
The Partnership Act by section 69 indirectly renders the registration firm compulsory by providing: |
| A. | Certain disabilities |
| B. | Penalties on partners of un-registered firms |
| C. | Penalties on un-registered firms |
| D. | Monetary fine on partners |
| Answer» A. Certain disabilities | |
| 682. |
A firm may be registered : |
| A. | In the beginning when it is being formed |
| B. | At a later date, after its formation |
| C. | When the court orders the firm to be registered |
| D. | When the Income-tax Department insists on its registration |
| Answer» B. At a later date, after its formation | |
| 683. |
In the application for registration of a firm, which of the following is not required to be given: |
| A. | Firm name |
| B. | The duration of the firm |
| C. | Names of any other places where the firm carries on business |
| D. | Capital contribution of partners |
| Answer» D. Capital contribution of partners | |
| 684. |
Which of the following details is required to be given in an application for registration of a firm? |
| A. | Capital contribution of partners |
| B. | PAN number of the partners |
| C. | Place of business of the firm |
| D. | Bank Accounts of the firm |
| Answer» C. Place of business of the firm | |
| 685. |
Application for Registration of firms should be signed by - |
| A. | All the partners |
| B. | Agents of partners specially authorized in this behalf |
| C. | All the active partners |
| D. | Either (a) or (b) |
| Answer» D. Either (a) or (b) | |
| 686. |
A firm name shall not contain any of the following words : |
| A. | Crown, Imperial |
| B. | Emperor, Empress |
| C. | King, Queen |
| D. | All the above |
| Answer» D. All the above | |
| 687. |
Registration of firm is effective from — |
| A. | The date when the Registrar files the statement and makes entries in the Register of firms |
| B. | The date of presentation of the statement to the Registrar of firms |
| C. | The date published in the Official Gazette |
| D. | The date intimated to the partners |
| Answer» A. The date when the Registrar files the statement and makes entries in the Register of firms | |
| 688. |
After the registration of a firm, if a partner retires, such a change in the constitution of the firm requires: |
| A. | A notice to be sent to the Registrar |
| B. | New registration |
| C. | An affidavit of a managing partner about the change |
| D. | No intimation |
| Answer» A. A notice to be sent to the Registrar | |
| 689. |
Intimation about closing and opening of a branch, after registration, is required to be given by: |
| A. | All the partners jointly |
| B. | Any partner or agent of the firm |
| C. | Either (a) or (b) |
| D. | Neither (a) or (b) |
| Answer» B. Any partner or agent of the firm | |
| 690. |
If an unregistered firm intends to file a suit against a third party, it should get itself registered before filing the suit. |
| A. | False, as such disability can never be removed. |
| B. | True, as after registration firm's disability to file such suit is removed. |
| C. | It should take permission of the court before filing the suit. |
| D. | Either (b) or (c) |
| Answer» B. True, as after registration firm's disability to file such suit is removed. | |
| 691. |
Which of the following are the disabilities of an unregistered firm? |
| A. | It cannot file a suit against third parties |
| B. | It cannot claim a set-off exceeding ` 100 |
| C. | Its partners cannot file a suit against the firm |
| D. | All the above |
| Answer» D. All the above | |
| 692. |
In case of an unregistered firm the partners can file a suit for the: |
| A. | Dissolution of the firm |
| B. | Accounts of dissolved firm |
| C. | Realization of property of dissolved firm |
| D. | All the above |
| Answer» D. All the above | |
| 693. |
Any person who supplies false information to the Registrar of firms, shall be liable to punishment with imprisonment upto ……… |
| A. | Three months |
| B. | Six months |
| C. | Nine months |
| D. | Twelve months |
| Answer» A. Three months | |
| 694. |
The Register of firms shall be open to inspection: |
| A. | By any person on payment of prescribed fees |
| B. | By partners only |
| C. | By Government Officials only |
| D. | By any person free of cost |
| Answer» A. By any person on payment of prescribed fees | |
| 695. |
Which of the following statements is incorrect? |
| A. | The registration of a firm is a condition precedent to the right to institute a suit |
| B. | If a partner refuses to sign the application for registration, than registration can be done only by dropping the name of such a partner from the firm |
| C. | A third party cannot file a suit against an un-registered firm |
| D. | Application for registration of firm must be signed by all the partners |
| Answer» C. A third party cannot file a suit against an un-registered firm | |
| 696. |
As per section 18, a partner in a partnership firm functions: |
| A. | In a dual capacity of principal and agent |
| B. | As a principal |
| C. | As an agent |
| D. | Neither as a principal nor as an agent |
| Answer» A. In a dual capacity of principal and agent | |
| 697. |
If a partner commits fraud in the conduct of the business of the firm: |
| A. | He shall indemnify the firm for any loss caused to it by his fraud |
| B. | He is not liable to the firm |
| C. | He is liable to the partners |
| D. | He is liable to the third parties |
| Answer» A. He shall indemnify the firm for any loss caused to it by his fraud | |
| 698. |
Partners are bound to carry on the business of the firm — |
| A. | To the greatest common advantage |
| B. | For the welfare to the society |
| C. | For the advantage of the family members |
| D. | For earning personal profits |
| Answer» A. To the greatest common advantage | |
| 699. |
Which of the following statements is / are false : |
| A. | A partner has a right to share profits |
| B. | Right to interest on capital |
| C. | Right of access to books |
| D. | Right to receive remuneration |
| Answer» D. Right to receive remuneration | |
| 700. |
Which of the following statements is correct? |
| A. | A partner can be admitted in a firm by the consent of the majority of partners |
| B. | A minor can be a partner in a firm |
| C. | The liability of a retired partner to third parties continues even after his retirement |
| D. | A partner of an unregistered firm cannot sue for the dissolution of a firm |
| Answer» C. The liability of a retired partner to third parties continues even after his retirement | |
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