CBSE Questions for Class 12 Commerce Accountancy Accounting For Partnership: Basic Concepts Quiz 4 - MCQExams.com

If the partner of a partnership for fixed duration carries on business after the expiry of the term, the rights and duties of the partners__________.
  • remains same.
  • are redefined.
  • are put in suspension until redefined.
  • are decided by court on application of any partner.
A particular partnership continued after the completion of that adventure for which it was entered into become ________.
  • Particular partnership.
  • Partnership at will.
  • Partnership for fixed term.
  • Partnership in emergency.
As per the Indian Partnership Act, the term Business does not include _____________.
  • Trade
  • Occupation
  • Profession
  • Vocation
Partnership Act, 1932 is not applicable to which  of these type of prtnerships ______________.
  • At will
  • Fixed term
  • Particular
  • Limited liabilty
State in which of the following circumstances a valid partnership is constituted.
  • X lend money to Y to start a new business wherein he is allowed $$20\%$$ profit in addition to $$16\%$$ interest on the amount lent
  • Y sells his goodwill to P and agreed for $$10\%$$ share of profit to the firm
  • A & B undertook to construct a Railway Bridge each sharing profit and loss equally
  • A is working as marketing executive in ABC Ltd. wherein he is entitled to $$2\%$$ profit in addition to his monthly remuneration
The name in which the partner of a firm carries on business is called ___________.
  • Firm name
  • Firm
  • Partnership
  • Association of persons
Where no provision is made by contract between the partner for duration of partnership or determination of their partnership is called ____________ .
  • Partnership at will
  • Partnership for fix term
  • Particular partnership
  • None
The liability of a partner in profit is ________.
  • limited.
  • unlimited.
  • limited to his capital.
  • limited to his share of interest in the firm assets.
Partnership is a contract of _________.
  • uberrimae fidei
  • fidelity
  • infidelity
  • none of these
Partnership is an extension of law of agency, hence _________.
  • No consideration is required to form a partnership
  • Capacity of partners is not an essential requirement
  • Partnership agreement can be for social purpose also
  • Partnership can be for limited purpose only
_________ is a valid partnership.
  • XY agreed to form a NGO to raise fund for upliftment of children's of OBC categories
  • A and B agreed to form a partnership two years hence after
  • X and Y agreed to form a group of persons to raise fund for construction of temple in their colony
  • A, B and C formed a partnership firm to develop township in Faridabad
Which of these is required to be mentioned in the application for Registration of a firm _________________.
  • PAN number
  • Academic qualification of the partners
  • Date of admission of each partner
  • Marital status of partners
____________ cannot create a valid partnership.
  • Members of Joint Hindu family
  • A Burmese Buddhist Husband and wife carrying on business as such
  • Both a and b
  • None
Expulsion of a partner is justified only when __________.
  • The power is conferred by contract
  • Power is exercised in good faith
  • By the majority of partners
  • A and B.
Expulsion of a partner otherwise than in good faith is treated __________.
  • Illegal
  • Null and void
  • Voidable
  • Perfectly valid
Which of these statements is true in respect of an unregistered firm?
  • It is an illegal association
  • It is not permitted to carry on business
  • It can sue for the enforcement of its rights arising out of contract
  • It suffers from certain disqualifications as regards enforcement of the rights of the firm or partner
In case of a partnership at will, notice to dissolve their partnership can be tendered by _________.
  • Any partner to all other partners
  • Senior partner to junior partner only
  • Any partner to the court
  • Active partner to the court
Which of the following is not a mode of giving public notice?
  • Publication in Official Gazette
  • Publication in one vernacular newspaper circulating in the district where the firms principal place of business is situated
  • Notice is to be sent to the Registrar of firms
  • Pasting notice in public place
If no notice of expulsion of partner is given _________.
  • He remains a partner
  • He and other partners remains liable to third party for the act done before his expulsion
  • He is personally liable for all the acts of the firm to third party
  • He stands discharged from future liability
A company is governed by ___________.
  • Indian Partnership Act
  • Indian Contract Act
  • The Companies Act, $$1956$$ as amended from time to time
  • Societies Registration Act
Right to manage the affairs of a firm vest with _______________.
  • Senior most partner
  • Managing partner
  • Every partner
  • Partner having BBA/MBA degree
A partner is _________ of his co partner.
  • agent
  • master
  • friend
  • colleague
AB Associates is an unregistered firm. C a local bad element of the area caused damaged to the property of the firm to the extent of $$Rs. 1000$$. Which of these action are advice to the firm?
  • Get the firm registered
  • File a suit for damages
  • Bear the loss as being unregistered firm no suit can be filed
  • Settle the case amicably
Which of these is/are point of difference between a partnership firm and a Hindu Undivided Family.
  • Right to manage business
  • Mode of creation
  • Manner of dissolution
  • All the three
In order that a notice to a partner operate as a notice to the whole firm, the same should be given to __________.
  • Sleeping partner
  • Active partner
  • Minor
  • All
A firm consists of three partners $$A, B, C$$ and $$B$$ dies. Under the above circumstances which of these statement is true?
  • Firm stand dissolved on the date of death of B
  • A and C can continue the partnership firm business if the agreement between the partners provide so
  • Only after settlement of B's claim the firm can continue its business
  • Firm become an illegal association
A notice given to a __________ tantamount to notice given to the firm itself __________.
  • Active partner
  • Sleeping partner
  • Minor partner
  • Retire partner
An act of a partner is binding upon the firm provided ___________________.
  • it is within his scope of authority
  • it is done in the name of the firm
  • it is done for the purpose of the business of the firm
  • all the three to be satisfied
Prior to the Indian Partnership Act, 1932 which came into force from 1 October, 1932 except section 69 which came into force from 1 October, 1933, the law of partnership was provided in ____________.
  • Sale of Goods Act, 1930
  • Indian Contract Act, 1872
  • Transfer of Property Act, 1908
  • English Partnership Act, 1890
Which of these rights is not available to a partner under the Partnership Act ?
  • To take part in business
  • To have access to the books of account
  • To claim interest on capital and bonus
  • Interest on advance given to the firm
Which of these rights are not conferred upon a partner under the Partnership Act _________________.
  • Right to take part in the business
  • Right to be consulted
  • Right to indemnity
  • Right to take remuneration
How the profit and loss of the firms are shared by the partners under the Partnership Act _________________.
  • Equally
  • According to the partnership deed
  • According to capital ratio
  • According to qualifications and seniority
An act, to be called an 'act of a firm', within the meaning of section 2(a) of the Indian Partnership Act, 1932 is__________________.
  • every act of the partners
  • only such acts which give rise to a right enforceable by or agairist the firm
  • such acts which do not give rise to a right enforceable by or against the firm
  • either (a) or (b) or (c)
State which of the following, statement is true?
  • Audit of partnership firm is mandatory under the Indian Partnership Act, 1932
  • Liability of a partner is limited
  • Registration of a partnership firm is mandatory for the purpose of taking PAN number
  • Mutual agency is the essence of partnership
Profit and losses of the firm are to be shared equally ____________________.
  • When the partnership deed is silent about it
  • As per Partnership Act in the absence of anything in the partnership deed to the contrary
  • Both the circumstances
  • None of the situations
Under section 4 of the Indian Partnership Act, partnership is a __________.
  • Compulsory legal relation
  • Creation of the choice and voluntary agreement between the concerned parties
  • Relation arising from status
  • Creation of act of God
_______ provides for no duration or determination of partnership. 
  • Partnership in undertaking
  • General partnership
  • Partnership at will
  • All the above
For the purpose of income-tax, a partnership firm ____________________.
  • Can be assessed as an entity distinct and separate from its partners
  • Cannot be assessed as an entity separate and distinct from its partners
  • Can be assessed as an entity distinct and separate from its partners only with the permission of the court
  • Can be assessed as an entity distinct and separate from its partners only if all the partners agree for the same
Which of these duties is not covered under the general duty of a partner under the Partnership Act ? 
  • To carry on business to the greatest common advantage of the firm
  • To render true account
  • To take care of day-to-day needs of the senior partner
  • To act diligently
Which of these duties a partner can be varied by an agreement between the partners?
  • Duty to take part in business
  • Duty to attend duty diligently
  • Duty to account for profit on competitive business
  • All the three
__________is not an essential element of a valid partnership.
  • an, agreement to carry on a business
  • sharing of profits
  • sharing of losses
  • business to be carried by all or any of them acting for all
Which of the following is an exception to the partnership at will, as provided under section 7 of the Indian Partnership Act, 1932 ?
  • Where there is a provision for the duration of the partnership
  • where there is a provision for determination of the partnership
  • both (a) and (b)
  • only (a) and not (b)
For constituting a partnership within the meaning of section 4 of the Indian Partnership Act, 1932 __________________.
  • The business has to be of permanent nature
  • The business can be of temporary nature
  • It is immaterial whether the business is of temporary or permanent nature
  • Only (a) and not (b)
In partnership at will ______________________________.
  • a partner of a firm can retire from the firth at any time by giving a notice of his intention to retire to his co-partners
  • a partner of a firm can dissolve the firm at any time by giving a notice of his intention to dissolve the firm to his copartners
  • either (a) or (b)
  • only (b) and not (a)
In case a partnership is rescinded on account of fraud and misrepresentation, the aggrieved partner has right to ________________.
  • Lien on surplus assets
  • Right to rank as a creditor
  • Be indemnified
  • All the three
A partnership for which no period or duration is fixed, under the Indian Partnership Act, 1932 is known as ________.
  • General partnership
  • Partnership at will
  • Particular partnership
  • Co-ownership
Which of the following in itself is not sufficient to constitute a partnership ?
  • the sharing of profits by persons having a joint or common interest
  • the receipt by a person of a share of the profits
  • the receipt by a person of a payment varying with the profits earned by business
  • all the above
Select the odd one ____________________.
  • To submit a dispute to arbitration
  • To open a bank account on behalf of the firm in his own name
  • To acquire immovable property
  • To receive payment on behalf of the firm after giving proper receipt
Which of these is not an implied authority of a partner in the absence of any specific provisions in the partnership deed _____________________.
  • To buy or sell goods on behalf of the firm
  • To receive payment on behalf of the firm
  • To sue on behalf of the firm and defend suit in the name of the firm
  • to submit a dispute relating to the firm for arbitration
Partner share profit or loss _______________.
  • Equally
  • Proportionate to their capital
  • As agreed in the partnership deed
  • Based on qualification and experience
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Accountancy Quiz Questions and Answers