McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 701. |
Which are the matters that require unanimous consent of all the partners: |
| A. | Admission of a partner |
| B. | Transfer by a partner of his interest in the firm |
| C. | Fundamental change in the nature of the business |
| D. | All the above |
| Answer» D. All the above | |
| 702. |
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 |
| Answer» D. None of the above | |
| 703. |
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 |
| Answer» A. His share in the firm | |
| 704. |
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 |
| Answer» D. All the above | |
| 705. |
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 |
| Answer» A. Right to receive remuneration | |
| 706. |
The authority of a partner to bind the firm for his acts as contained in section 19 of the Partnership Act is known as: |
| A. | Express authority |
| B. | Legal authority |
| C. | Implied authority |
| D. | Managerial authority |
| Answer» C. Implied authority | |
| 707. |
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 |
| Answer» C. Firm | |
| 708. |
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 |
| Answer» D. Buys goods on behalf of the firm | |
| 709. |
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 |
| Answer» A. Decision of majority of partners | |
| 710. |
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 |
| Answer» D. All the above | |
| 711. |
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 |
| Answer» B. The minor is also personally liable | |
| 712. |
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 |
| Answer» B. Ordinary matters | |
| 713. |
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 |
| Answer» A. Can sue on matters arising otherwise than out of contract | |
| 714. |
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 |
| Answer» D. All the above | |
| 715. |
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 |
| Answer» A. Only out of profits | |
| 716. |
Subject to contract between the partners, and pursuant to section 13 of the Indian partnership, the following 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 |
| Answer» C. Partner is not entitled to remuneration for taking part in the conduct of the business | |
| 717. |
Any dispute arising as to ordinary matters connected with the business may be decided by- |
| A. | Unanimous consent of all the partners |
| B. | Consent of majority partners |
| C. | Decision of Court |
| D. | Consent of the Working partners |
| Answer» B. Consent of majority partners | |
| 718. |
A change in nature of business can be effected only based on — |
| A. | Unanimous consent of all the partners |
| B. | Consent of majority partners |
| C. | Consent of the active partners |
| D. | Decision of Court |
| Answer» A. Unanimous consent of all the partners | |
| 719. |
Property of the firm does not include: |
| A. | Trademark owned by the firm |
| B. | Property acquired by or for the firm |
| C. | Goodwill of the business |
| D. | Property belonging to the partners |
| Answer» D. Property belonging to the partners | |
| 720. |
Where a firm constituted for a fixed term continues to carry on business after the expiry of the said term, the mutual rights and duties of the partners will — |
| A. | Be decided by the Courts |
| B. | Be decided upon by the working partners |
| C. | Be similar as that of partnership at Will |
| D. | Be extinguished |
| Answer» C. Be similar as that of partnership at Will | |
| 721. |
Which of this falls outside the implied authority? |
| A. | Taking loan by pledging goods of the firm |
| B. | Accepting Bills of Exchange on behalf of the firm |
| C. | Submit disputes for arbitration |
| D. | Settle accounts with customers |
| Answer» C. Submit disputes for arbitration | |
| 722. |
Which of these acts are within the implied authority? |
| A. | Enter into partnership on behalf of the firm |
| B. | Admit any liability in a suit against the firm |
| C. | Withdraw a suit filed on behalf of the firm |
| D. | To issue cheques on behalf of the firm |
| Answer» D. To issue cheques on behalf of the firm | |
| 723. |
The implied authority of any partner is subject to: |
| A. | Usage or customs of the trade |
| B. | Specific authority of the partners |
| C. | Both (a) and (b) |
| D. | Either (a) or (b) |
| Answer» C. Both (a) and (b) | |
| 724. |
Notice to a partner operates as notice to the firm. For such purpose, notice may be given to: |
| A. | All the partners jointly |
| B. | A partner who habitually acts in the business of the firm |
| C. | Any two partners |
| D. | Only the dormant partners |
| Answer» B. A partner who habitually acts in the business of the firm | |
| 725. |
A minor may give public notice of his decision to continue or withdraw from the firm on his attaining majority within: |
| A. | Three months |
| B. | Six months |
| C. | Nine months |
| D. | One year |
| Answer» B. Six months | |
| 726. |
On attaining majority when the minor partner elects not to become a partner, his share is not liable for any acts of the firm done — |
| A. | After his admission to benefits of partnership |
| B. | After the date of giving public notice |
| C. | After the date of attaining majority |
| D. | After the date of dissolution of firm |
| Answer» B. After the date of giving public notice | |
| 727. |
A minor, before attaining the age of majority, has the right to: |
| A. | Receive agreed share of property and of profits of the firm |
| B. | Access and to inspect the accounts of the firm |
| C. | Sue the firm for his share of property or profits if he wants to sever his connection with the firm |
| D. | All of the above |
| Answer» D. All of the above | |
| 728. |
When a minor on attaining the age of majority, has elected to become a partner, he becomes personally liable to third parties for all the acts of the firm from the date of his: |
| A. | Decision to become a partner |
| B. | Attaining the age of majority |
| C. | Admission to the benefits of the firm |
| D. | Attaining majority or decision to become a partner, whichever is earlier |
| Answer» C. Admission to the benefits of the firm | |
| 729. |
'Act of a firm' in the Partnership Act means: |
| A. | Authorized acts |
| B. | Any such act or omission which give rise to a right enforceable by or against the firm |
| C. | Such acts which do not give rise to a right enforceable by or against the firm |
| D. | Actual acts |
| Answer» B. Any such act or omission which give rise to a right enforceable by or against the firm | |
| 730. |
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) |
| Answer» B. Without the consent of all the existing partners | |
| 731. |
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 |
| Answer» D. All the above | |
| 732. |
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 |
| Answer» D. All the above | |
| 733. |
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 |
| Answer» D. All of the above | |
| 734. |
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 |
| Answer» D. All of the above | |
| 735. |
Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he will not carry on 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 |
| Answer» A. Such restraint is in respect of carrying of any business similar to that of the firm | |
| 736. |
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 |
| Answer» B. Dissolution of partnership at will | |
| 737. |
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 |
| Answer» D. All the above | |
| 738. |
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 |
| Answer» D. All of the above | |
| 739. |
The partners authority to act for the firm and to bind their co-partners continues even after the dissolution of 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 |
| Answer» C. Both of above | |
| 740. |
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 |
| Answer» D. All the above | |
| 741. |
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 |
| Answer» D. Retirement on attaining the age of superannuation | |
| 742. |
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 |
| Answer» A. To all the partners | |
| 743. |
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 |
| Answer» A. Until public notice is given of the retirement. | |
| 744. |
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) |
| Answer» C. Either (a) or (b) | |
| 745. |
A partner can be expelled from a firm: |
| A. | If power to expel is conferred by express agreement. |
| B. | If the power is exercised in good faith. |
| C. | By majority of partners after giving opportunity of explanation. |
| D. | All of the above |
| Answer» D. All of the above | |
| 746. |
A retired partner may be liable: |
| A. | For debts incurred before retirement. |
| B. | For debts incurred after retirement until public notice is given. |
| C. | Either (a) or (b) |
| D. | Both (a) and (b) |
| Answer» D. Both (a) and (b) | |
| 747. |
Unless there is a contract to the contrary, the effect insolvency of a partner is that: |
| A. | The firm is dissolved |
| B. | The firm is not automatically dissolved |
| C. | The firm is also deemed insolvent |
| D. | The firm is reconstituted |
| Answer» A. The firm is dissolved | |
| 748. |
No public notice is required: |
| A. | On the death of a partner |
| B. | On minor attaining majority |
| C. | Retirement of partner |
| D. | Dissolution of firm |
| Answer» A. On the death of a partner | |
| 749. |
An outgoing partner can carry on a competing business and also advertise such business. For this purpose, in the absence of contract to the contrary — |
| A. | He can use the firm's name |
| B. | He cannot use the firm's name |
| C. | He cannot represent himself as carrying on the business of the firm. |
| D. | Both (b) and (c) |
| Answer» D. Both (b) and (c) | |
| 750. |
As per section 38 when constitution of the firm is changed, the continuing guarantee given to the firm or to a third party in respect to the transactions of the firm: |
| A. | Is not affected at all |
| B. | Is revoked as to future transactions |
| C. | Is revoked with retrospective effect |
| D. | Ceases to be continuing guarantee |
| Answer» A. Is not affected at all | |
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