{"id":9922,"date":"2024-03-04T16:41:38","date_gmt":"2024-03-04T11:11:38","guid":{"rendered":"https:\/\/gstguntur.com\/?p=9922"},"modified":"2024-03-05T14:54:55","modified_gmt":"2024-03-05T09:24:55","slug":"general-nature-of-a-partnership-mcq-on-business-law-with-answers","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/general-nature-of-a-partnership-mcq-on-business-law-with-answers\/","title":{"rendered":"General Nature of a Partnership \u2013 MCQ on Business Law with Answers"},"content":{"rendered":"

Students should practice General Nature of a Partnership \u2013 CA Foundation Business Law MCQ Questions with Answers<\/a> based on the latest syllabus.<\/p>\n

General Nature of a Partnership \u2013 Business Law MCQ Questions with Answers<\/h2>\n

1. What among the following is not an essential element of partnership:
\n(a) There must be an agreement entered into by all the persons concerned
\n(b) The agreement must be to share the profits of a business
\n(c) The business must start within six months from the date of agreement
\n(d) The business must be carried on by all or any one of them acting for all.
\nAnswer:
\n(c) The business must start within six months from the date of agreement<\/p>\n

2. A Joint Hindu Family is created:
\n(a) By a contract
\n(b) By operation of law or status
\n(c) By registration
\n(d) By all the above mode
\nAnswer:
\n(b) By operation of law or status<\/p>\n

3. A club is the form of:
\n(a) Association not for profit
\n(b) Partnership
\n(c) Sole proprietorship
\n(d) Public company.
\nAnswer:
\n(a) Association not for profit<\/p>\n

4. The Partnership Act, 1932 ________.
\n(a) Specifies the minimum number of partners in a firm
\n(b) Specifies the maximum number of partners in a firm
\n(c) Both (a) and (b)
\n(d) None of the above
\nAnswer:
\n(a) Specifies the minimum number of partners in a firm<\/p>\n

\"General<\/p>\n

5. The ceiling on maximum number of partners in a firm is laid down in:
\n(a) The Partnership Act, 1932
\n(b) The Indian Contract Act, 1872
\n(c) The Companies Act, 1956
\n(d) Central Government notification
\nAnswer:
\n(c) The Companies Act, 1956<\/p>\n

6. The test of partnership is laid down in the following case:
\n(a) Cox v. Hickman
\n(b) Garner v. Murray
\n(c) Mohiribibi v. Dharmodas Ghosh
\n(d) None of the above
\nAnswer:
\n(a) Cox v. Hickman<\/p>\n

7. A partnership firm ________.
\n(a) Is a legal person
\n(b) Is not a legal person
\n(c) Has a distinct legal personality
\n(d) None of the above
\nAnswer:
\n(b) Is not a legal person<\/p>\n

8. A partnership formed for the purpose of carrying on particular venture or undertaking is known as:
\n(a) Limited partnership
\n(b) Special partnership
\n(c) Joint Venture
\n(d) Particular partnership
\nAnswer:
\n(d) Particular partnership<\/p>\n

9. The principle of ________ is applicable to partners in a partnership:
\n(a) Uberrimae fidei\/Utmost Good Faith
\n(b) Ultimate Trust
\n(c) Insurable Interest
\n(d) Blind Faith
\nAnswer:
\n(a) Uberrimae fidei\/Utmost Good Faith<\/p>\n

10. Limited Liability partnership is a form of partnership that:
\n(a) Is not possible
\n(b) Is allowed in certain circumstances in the Partnership Act, 1932
\n(c) Is now abolished
\n(d) Can be set up by LLP Act, 2008
\nAnswer:
\n(d) Can be set up by LLP Act, 2008<\/p>\n

\"General<\/p>\n

11. A partnership for which no period or duration is fixed under the Indian Partnership Act is known as :
\n(a) Unlimited partnership
\n(b) Co-ownership
\n(c) Particular partnership
\n(d) Partnership at will
\nAnswer:
\n(d) Partnership at will<\/p>\n

12. The essential elements of partnership does not include:
\n(a) Partnership should be registered
\n(b) There must bean agreement to share profits of a business.
\n(c) There must be mutual agency among partners.
\n(d) There must be an association of two or more persons.
\nAnswer:
\n(a) Partnership should be registered<\/p>\n

13. To form a partnership, the minimum capital contribution should be:
\n(a) \u20b9 1 lakh
\n(b) \u20b9 10 lakh
\n(c) \u20b9 1 crore
\n(d) There is no minimum limit.
\nAnswer:
\n(d) There is no minimum limit.<\/p>\n

14. Property of firm does not include:
\n(a) All property which the partners have originally brought into the common stock of the business
\n(b) Goodwill of the business
\n(c) Personal properties belonging to the partner
\n(d) Property acquired by the funds of the firm
\nAnswer:
\n(c) Personal properties belonging to the partner<\/p>\n

15. Which of the parties may be admitted to the benefits of partnership?
\n(a) Person of unsound mind
\n(b) Minor
\n(c) Alien enemies
\n(d) An insolvent.
\nAnswer:
\n(b) Minor<\/p>\n

\"General<\/p>\n

State Whether The Following are True or False:<\/strong><\/p>\n

    \n
  1. Maximum number in a partnership firm is 50 members.<\/li>\n
  2. A partnership firm cannot be registered for carrying on any charitable activity.<\/li>\n
  3. The maximum number of partners in a partnership firm is specified in Companies Act, 2013.<\/li>\n
  4. Sharing of profits is the conclusive evidence of the existence of the partnership between the parties.<\/li>\n
  5. A minor can be a partner in a partnership firm.<\/li>\n
  6. A and B agree to buy 100 tins of ghee agreeing to share it between them. They are not partners.<\/li>\n
  7. If a partnership can be dissolved by the mutual agreement only, then it will be called as a partnership at will.<\/li>\n
  8. Forming a partnership for construction of a bridge is a type of particular partnership.<\/li>\n
  9. Goodwill is to be considered as a partnership property.<\/li>\n
  10. Prior to the enactment of Indian Partnership Act, 1932 the law relating to partnership was contained in the Indian Contract Act, 1872.<\/li>\n
  11. True test of partnership was first laid down in the case of Cox v. Hickman.<\/li>\n
  12. A sub-partner has a right to participate in the conduct of the business.<\/li>\n
  13. Law of partnership is an extension of the general law of guarantee.<\/li>\n
  14. Partnership firm has a separate legal entity.<\/li>\n<\/ol>\n

    Answer:<\/p>\n

      \n
    1. True<\/li>\n
    2. True<\/li>\n
    3. True<\/li>\n
    4. False<\/li>\n
    5. False<\/li>\n
    6. True<\/li>\n
    7. False<\/li>\n
    8. True<\/li>\n
    9. True<\/li>\n
    10. True<\/li>\n
    11. True<\/li>\n
    12. False<\/li>\n
    13. False<\/li>\n
    14. False<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

      Students should practice General Nature of a Partnership \u2013 CA Foundation Business Law MCQ Questions with Answers based on the latest syllabus. General Nature of a Partnership \u2013 Business Law MCQ Questions with Answers 1. What among the following is not an essential element of partnership: (a) There must be an agreement entered into by …<\/p>\n

      General Nature of a Partnership \u2013 MCQ on Business Law with Answers<\/span> Read More »<\/a><\/p>\n","protected":false},"author":2,"featured_media":11449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[160],"tags":[],"jetpack_featured_media_url":"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/11\/General-Nature-of-a-Partnership-\u2013-MCQ-on-Business-Law-with-Answers.png","_links":{"self":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/9922"}],"collection":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/comments?post=9922"}],"version-history":[{"count":2,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/9922\/revisions"}],"predecessor-version":[{"id":11450,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/9922\/revisions\/11450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/media\/11449"}],"wp:attachment":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/media?parent=9922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/categories?post=9922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/tags?post=9922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}