Indian Partnership Act - Study Mode

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[#401] Acknowledgment of a liability of the firm by a partner amounts to

(A) Compromising a claim

(B) Relinquishment of a claim

(C) Admission of liability in a suit or proceedings against the firm

(D) Neither (A) nor (B) nor (C)

Correct Answer

(D) Neither (A) nor (B) nor (C)

[#402] As a general rule, by virtue of section 13 of the Indian Partnership Act, 1932

(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) Both (A) and (B)

(D) Neither (A) nor (B)

Correct Answer

(A) Partner is not entitled to interest on the capital subscribed by him

[#403] Where in a contract between the partners no provision is made for duration of their partnership or for determination of their partnership, the partnership is:

(A) Unlimited partnership

(B) Particular partnership

(C) Implied partnership

(D) Partnership at will

Correct Answer

(D) Partnership at will

[#404] Under section 11 of the Indian Companies Act, 1956 for a non-banking business, the minimum number of partners can be

(A) Ten

(B) Twenty

(C) Twenty-five

(D) Thirty

Correct Answer

(B) Twenty

[#405] Match List-I with List-II and select the correct answer using the given below: List I (Principles of mutual rights and liabilities of partners) List II (Relevant case-law) a. Remuneration to a partner in absence of an agreement on this matter 1. Md. Abdul Sattar v. State of Andhra Pradesh b. Fixation of remuneration by agreement in respect of a partner does not alter his status as a partner 2. Ghisulal v. Ghumbirmal c. Interest on the capital of a partner 3. Shelat Brothers v. Nanalal Harilal Shelat d. Action against a partner for balance due to another 4. Bhagchand v. Kaluram @ Moolchand

(A) a-4, b-2, c-1, d-3

(B) a-3, b-1, c-2, d-4

(C) a-1, b-3, c-4, d-2

(D) a-3, b-1, c-4, d-2

Correct Answer

(D) a-3, b-1, c-4, d-2