The Indian Partnership Act, 1932 MCQ

Question 1

1. The term 'Partnership' has been defined under ___ of the Partnership Act, 1932:

A) Section 3

C) Section 5

D) Section 6

Answer

B) Section 4 ✓

Question 2

2. A partnership for which no period or duration is fixed under the Indian Partnership Act is known as:

A) Unlimited partnership

B) Co-ownership

C) Particular partnership

Answer

D) Partnership at will ✓

Question 3

3. The most important element in partnership is:

A) Business

B) Sharing of profits

C) Agreement

Answer

D) Business to be carried on by all or any of them acting for all ✓

Question 4

4. A firm is the name of:

A) The partners

B) The minors in the firm

C) The business under which the firm carries on business

Answer

D) The collective name under which it carries on business ✓

Question 5

5. A partnership formed for the purpose of carrying on particular venture or undertaking is known as:

A) Limited partnership

B) Special partnership

C) Joint venture

Answer

D) Particular partnership ✓

Question 6

6. In the absence of agreement to the contrary all partners are:

A) Not entitled to share profits

B) Entitled to share in capital ratio

C) Entitled to share in proportion to their ages

Answer

D) Entitled to share profits equally ✓

Question 7

7. A partnership at will is one:

A) Which does not have any deed

B) Which does not have any partner

D) Which cannot be dissolved

Answer

C) Which does not provide for how long the business will continue ✓

Question 8

8. What among the following is not an essential element of partnership:

A) There must be an agreement entered into by all the persons concerned

B) The agreement must be to share the profits of a business

D) The business must be carried on by all or any one of them acting for all

Answer

C) The business must start within six months from the date of agreement ✓

Sample Questions: The Indian Partnership Act, 1932