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CA Foundation Partnership — practice questions

Explore 71 free Partnership questions in CA Foundation Businesslaw. Open each question or exercise to read its content, reference answers and available explanation.

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Partnership questions and exercises with answers

Showing questions 1–30 of 71.

Under Section 20, a restriction on a partner's implied authority binds a third party only if:Read the answer and worked solution →Under Section 58, the statement for registration of a firm must be signed by:Read the answer and worked solution →Which right is NOT affected by non-registration of a firm?Read the answer and worked solution →Under Section 39, the 'dissolution of a firm' means the dissolution of partnership:Read the answer and worked solution →Under Section 40, dissolution by agreement requires:Read the answer and worked solution →Which of the following is NOT a ground for dissolution by the court under Section 44?Read the answer and worked solution →Under Section 45, after dissolution the partners continue to be liable to third parties for acts done as if the firm subsisted:Read the answer and worked solution →Public notice is NOT required in the case of:Read the answer and worked solution →A notice of dissolution of a partnership at will, once given:Read the answer and worked solution →CA Foundation · Businesslaw · Partnership — True / FalseRead the answer and worked solution →Which section of the Indian Partnership Act 1932 defines partnership?Read the answer and worked solution →Partnership under the Act arises from what?Read the answer and worked solution →Members of a Hindu undivided family running the family business as such are what?Read the answer and worked solution →Whether a firm exists is decided by regard to what?Read the answer and worked solution →A widow paid an annuity from a deceased partner's profits is what?Read the answer and worked solution →Co-owners sharing profits from jointly held property are what?Read the answer and worked solution →Under Section 9, partners must carry on business to what end?Read the answer and worked solution →Which Contract Act section does Section 11(2) override on restraint?Read the answer and worked solution →Absent contract, partners share profits and losses in what ratio?Read the answer and worked solution →Interest on a partner's capital under Section 13 is payable out of what?Read the answer and worked solution →Interest on a partner's advance beyond agreed capital carries what rate?Read the answer and worked solution →The firm indemnifies a partner for liabilities incurred in what?Read the answer and worked solution →Property bought with the firm's money is presumed acquired for whom?Read the answer and worked solution →The property of the firm includes which intangible asset?Read the answer and worked solution →A partner earns private profit using the firm name. He must do what?Read the answer and worked solution →A partner runs a competing business. He must account to the firm for what?Read the answer and worked solution →In the firm's business, a partner acts as what?Read the answer and worked solution →A partner's authority to bind the firm in the usual way is called what?Read the answer and worked solution →An internal restriction on a partner's authority binds an outsider who what?Read the answer and worked solution →An admission by a partner is evidence against the firm if made when?Read the answer and worked solution →

Worked practice questions

Under Section 20, a restriction on a partner's implied authority binds a third party only if:

  1. It is published in a newspaper
  2. The third party knows of the restriction
  3. The restriction is registered
  4. The firm is a trading firm
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Correct answer: B. The third party knows of the restriction

A restriction on implied authority is effective against a third party only where he has notice of it (or does not know he is dealing with a partner).

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Under Section 58, the statement for registration of a firm must be signed by:

  1. Any one partner
  2. All the partners, or their specially authorised agents
  3. The Registrar
  4. Only the managing partner
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Correct answer: B. All the partners, or their specially authorised agents

Section 58 requires the registration statement to be signed and verified by all the partners or by their specially authorised agents.

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Which right is NOT affected by non-registration of a firm?

  1. The partners' right to claim set-off above Rs 100
  2. The firm's right to enforce a contract against outsiders
  3. The firm's right to sue a third party
  4. The right of a third party to sue the firm
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Correct answer: D. The right of a third party to sue the firm

Non-registration does not bar a third party from suing the firm, nor the right to sue for dissolution/accounts of a dissolved firm, or a claim up to Rs 100.

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More Businesslaw topics

Negotiable Instruments Act 1881Nature of ContractsAgencyThe Limited Liability Partnership Act 2008Contract of Indemnity and GuaranteeBreach of Contract and its RemediesPerformance of ContractCompanies Act 2013