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Partnership Act, 1932

Description: **Partnership Act, 1932 Quiz** This quiz covers various aspects of the Partnership Act, 1932, an important legislation governing partnerships in India. Test your knowledge and understanding of the key provisions and concepts related to partnerships.
Number of Questions: 14
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Tags: partnership partnership act, 1932 indian law banking and finance law
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What is the minimum number of partners required to form a partnership firm in India?

  1. 1

  2. 2

  3. 3

  4. 4

Show answer
Correct Option: B
Explanation:

According to the Partnership Act, 1932, a partnership firm must have at least two partners.

Which of the following is NOT a type of partnership recognized under the Partnership Act, 1932?

  1. General Partnership

  2. Limited Partnership

  3. Limited Liability Partnership

  4. Joint Venture

Show answer
Correct Option: D
Explanation:

Joint Venture is not a type of partnership recognized under the Partnership Act, 1932.

What is the liability of partners in a general partnership?

  1. Limited to their capital contribution

  2. Joint and several

  3. Limited to their share of profits

  4. None of the above

Show answer
Correct Option: B
Explanation:

In a general partnership, the liability of partners is joint and several, meaning each partner is fully liable for the debts and obligations of the partnership.

What is the maximum number of partners allowed in a banking partnership firm?

  1. 10

  2. 20

  3. 30

  4. 40

Show answer
Correct Option: A
Explanation:

As per the Partnership Act, 1932, a banking partnership firm cannot have more than 10 partners.

Which of the following is NOT a right of a partner in a partnership firm?

  1. To share in the profits

  2. To participate in management

  3. To inspect the books of accounts

  4. To transfer their share without the consent of other partners

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Correct Option: D
Explanation:

A partner cannot transfer their share in a partnership firm without the consent of the other partners.

What is the effect of a partner's death on the partnership firm?

  1. The partnership firm is automatically dissolved

  2. The partnership firm continues with the remaining partners

  3. The partnership firm is dissolved unless the partnership agreement provides otherwise

  4. None of the above

Show answer
Correct Option: C
Explanation:

According to the Partnership Act, 1932, a partnership firm is dissolved upon the death of a partner unless the partnership agreement provides otherwise.

What is the purpose of a partnership deed?

  1. To set out the terms and conditions of the partnership

  2. To register the partnership firm with the authorities

  3. To obtain a loan from a bank

  4. None of the above

Show answer
Correct Option: A
Explanation:

A partnership deed is a legal document that sets out the terms and conditions of the partnership, including the rights, duties, and obligations of the partners.

Which of the following is NOT a duty of a partner in a partnership firm?

  1. To act in good faith

  2. To contribute to the capital of the firm

  3. To share in the profits and losses

  4. To compete with the partnership firm

Show answer
Correct Option: D
Explanation:

A partner has a duty to act in good faith and not to compete with the partnership firm.

What is the minimum age required to become a partner in a partnership firm?

  1. 18 years

  2. 21 years

  3. 25 years

  4. 30 years

Show answer
Correct Option: A
Explanation:

According to the Partnership Act, 1932, a person must be at least 18 years of age to become a partner in a partnership firm.

Which of the following is NOT a mode of dissolution of a partnership firm?

  1. By agreement of all partners

  2. By the death of a partner

  3. By the insolvency of a partner

  4. By the expiry of the term of the partnership

Show answer
Correct Option: C
Explanation:

Insolvency of a partner is not a mode of dissolution of a partnership firm under the Partnership Act, 1932.

What is the liability of a limited partner in a limited partnership?

  1. Limited to their capital contribution

  2. Joint and several

  3. Limited to their share of profits

  4. None of the above

Show answer
Correct Option: A
Explanation:

In a limited partnership, the liability of limited partners is limited to their capital contribution.

Which of the following is NOT a right of a creditor of a partnership firm?

  1. To sue the individual partners

  2. To attach the property of the partnership firm

  3. To share in the profits of the partnership firm

  4. To inspect the books of accounts of the partnership firm

Show answer
Correct Option: C
Explanation:

Creditors of a partnership firm do not have the right to share in the profits of the firm.

What is the maximum number of partners allowed in a non-banking partnership firm?

  1. 10

  2. 20

  3. 30

  4. 40

Show answer
Correct Option: B
Explanation:

As per the Partnership Act, 1932, a non-banking partnership firm cannot have more than 20 partners.

Which of the following is NOT a type of partner recognized under the Partnership Act, 1932?

  1. Active Partner

  2. Sleeping Partner

  3. Nominal Partner

  4. Quasi Partner

Show answer
Correct Option: D
Explanation:

Quasi Partner is not a type of partner recognized under the Partnership Act, 1932.

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