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MOST IMPORTANT “ONE-LINER”: Partnership Act, 1932 (Indian Perspective)

December 23, 2025
  1. The Partnership Act (Part Act) is of the year—1932.
  2. Which Entry of the 7th Schedule of the Indian Constitution empowers legislature to legislate on the matter relating to arbitration—Entry No. 7 of Concurrent List.
  3. The Partnership Act contains________Chapters—8 Chapters
  4. The Partnership Act contains______Sections—74 Section.
  5. The Partnership Act is having______Schedules—2- Schedules.
  6. Out of 2-Schedules, Schedules –I deals with_______while Schedule-2 is repealed—Fees Schedules for certain act/ documents.
  7. Preambular Purpose of Part Act is to_______the law relating to partnership—Define and amend (DA)
  8. The Partnership Act was enacted on—8th April 1932.
  9. The Partnership Act came into force w.e.f.—1st October 1932.
  10. Which Section of the Partnership Act did not come into force on 01.10.1932—Section 69 (Effect of non-registration)
  11. Section 69 (Effect of non-registration) of the Partnership Act came into force w.e.f—1st October, 1933.
  12. The Partnership Act, 1932 is applicable across India including Jammu and Kashmir (since UTs) w.e.f –31.10.2019.
  13. True/ False: The provisions relating to partnership were earlier part of the Indian Contract Act, 1872 (ICA)—True.
  14. Which Act was the immediate predecessor of the Partnership Act, 1932—Indian Contract Act, 1872.
  15. Which Chapter of Indian Contract Act, 1872 dealt with Partnership before enactment of Partnership Act, 1932—Chapter XI [Section 239- 266].
  16. True/ False: The contract of partnership is a “special contract”—True.
  17. True/ False: A contract of partnership is not required to be in writing—True.
  18. True/ False: A contract of partnership can be oral also—True.
  19. Minimum_______ numbers of partners are required in a partnership firm is—Min. 2-Partners.
  20. Maximum______numbers of partners can be in a partnership firm is—100 Partners. [As per Rule 10 of Companies (Misc.) Rules, 2014]
  21. In case the number of members in a partnership firm exceed 100, there will be penalty upto Rs._______ on every members of the firm?—Rs. 1-Lakh [Sec. 464 of the Companies Act, 2013]
  22. As per Section_______of the Companies Act, 2013, in case the number of members in a partnership firm exceed 100, there will be penalty upto Rs.1-Lakh on every members of the firm—Sec. 464 of the Companies Act, 2013.
  23. The Indian Contract Act, 1872 shall continue to apply to partnership firms. It is so mandated under Section_______of the Partnership Act—Section 3.
  24. As per Section________of the Partnership Act, 1932, the Indian Contract Act, 1872 shall continue to apply to partnership firms—Section 3.
  25. The expression “partnership”, “partner”, “firm” and “firm name” are defined under Section_______of the Partnership Act, 1932—Section 4.
  26. Section________ of the Partnership Act, 1932, defines the expression “partnership”, “partner”, “firm” and “firm name”—Section 4.
  27.  “Partnership” is the ______ between persons who have agreed to share the profits of a business carried on by all or any of them acting for all—Relation. [Refer Section 4]
  28. Persons who have entered into partnership with one another are called individually—Partners. [Refer Section 4]
  29. Persons who have entered into partnership with one another are called collectively a—Firm. [Refer Section 4]
  30. The name under which partnership business is carried on is called the—Firm Name. [Refer Section 4]
  31. True/ False: The relation of partnership arises from contract and not from status—True.
  32. The relation of partnership arises from contract and not from status. Such provision is contained under Section______of the Partnership Act—Section 5.
  33. The members of a Hindu undivided family (HUF) carrying on a family business as such are not partners in such business—True. [Refer Section 5]
  34. As per Section_______of the Partnership Act, the members of a Hindu undivided family (HUF) carrying on a family business as such are not partners in such business—Section 5.
  35. A Burmese Buddhist husband and wife carrying on business as such are not partners in such business—True. [Refer Section 5]
  36. As per Section_______of the Partnership Act, a Burmese Buddhist husband and wife carrying on business as such are not partners in such business—Section 5.
  37. Section_______of the Partnership Act, 1932 deal withmode of determining existence of partnership—Section 6.
  38. In determining whether a group of persons is or is not a firm, regard shall be had to the ______ between the parties, as shown by all relevant facts taken together—Real “Relation”. [Refer Section 6]
  39. In determining whether a person is or is not a partner in a firm, regard shall be had to the _______ between the parties, as shown by all relevant facts taken together—Real “Relation”. [Refer Section 6]
  40. True/ False: Mere sharing of profits or of gross returns arising from property by persons holding a joint or common interest in that property does not of itself make such persons partners—True. [Refer Expl. 1 to Sec.6]
  41. True/ False: The receipt by a person of a share of the profits of a business, does not of itself make him a partner with the persons carrying on the business—True. [Refer Expl. 2 to Sec.6]
  42. True/ False: The receipt by a person of a payment contingent upon the earning of profits or varying with the profits earned by a business, does not of itself make him a partner with the persons carrying on the business—True. [Refer Expl. 2 to Sec.6]
  43. True/ False: The receipt of or payment by a servant or agent as remuneration, does not of itself make the receiver a partner with the persons carrying on the business—True. [Refer Explanation to Sec.6]
  44. True/ False: The receipt of such share or payment by the widow or child of a deceased partner, as annuity, does not of itself make the receiver a partner with the persons carrying on the business—True. [Refer Explanation to Sec.6]
  45. True/ False: The receipt of such share or payment by a previous owner or part owner of the business, as consideration for the sale of the goodwill or share thereof, does not of itself make the receiver a partner with the persons carrying on the business—True. [Refer Explanation to Sec.6]
  46. Section 7 of the Partnership Act deals with—Partnership at Will.
  47. Where no provision is made by contract between the partners for the duration of their partnership or for the determination of their partnership, the partnership is—Partnership at will. [Sec.7].
  48. Where partnership is for a particular fixed time period. But the partnership continues even after fixed period. Such kind of partnership is known as—Partnership at Will. [Refer Explanation to Sec.17(b)]
  49. Section _____of the Partnership Act deals with “Particular Partnership”—Section 8.
  50. A person becoming a partner with another person in particular adventures or undertakings, is known as—Particular Partnership. [Sec.8].
  51. Any act or omission by all the partners, or by any partner or agent of the firm which gives rise to a right enforceable by or against the firm is known as—Act of a Firm [Refer Section 2(a) of the Part Act]
  52. Section 9 of the Partnership Act, 1932 deals with—General Duties of Partners.
  53. ‘General duties’ of partners is deals with under Section_______of the Partnership Act, 1932—Section 9.
  54. As a general duty, partners are bound to carry on the business of the firm to the greatest common advantage. It is so mandated under Section_______of the PA, 1932—Section 9.
  55. Partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner or his legal representative. Such duties are categorized as_______duties of partners—General Duties. [Refer Section 9]
  56. True/ False: Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm—True. [Refer Section 10]
  57. As per Section _________of the Part Act, every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm—Section 10.
  58. True/ False: With consent (express or implied) of all the partners of a firm, contracts may provide that a partner shall not carry on any business other than that of the firm while he is a partner—True. [Refer Section 11]
  59. Which Section of the Partnership Act, 1932 empowers the partners to enter into a contract that a partner shall not carry on any business other than that of the firm while he is a partner—Section 11.
  60. Any difference arising as to ordinary matters connected with the partnership business may be decided by ________ of the partners, and every partner shall have the right to express his opinion before the matter is decided—Majority. [Refer Section 12]
  61. Whose consent is required for change in the nature of the business of partnership—Consent of all the partners [Refer Section 12]
  62. True/ False: Every partner has a right to have access to and to inspect and copy any of the books of the firm— True. [Refer Section 12]
  63. Section________of the Partnership Act, 1932 deals with “mutual rights and liabilities” of Partners—Section 13.
  64. True/ False: As mutual rights and liabilities, a partner is not entitled to receive remuneration for taking part in the conduct of the business—True. [Refer Section 13]
  65. True/ False: As mutual rights and liabilities, the partners are entitled to share equally in the profits earned, and shall contribute equally to the losses sustained by the firm—True. [Refer Section 13]
  66. Interest Out of Profit Only—True/ False: As mutual rights and liabilities, where a partner is entitled to interest on the capital subscribed by him such interest shall be payable only out of profits—True. [Refer Section 13]
  67. As per Section 13, a partner making, for the purposes of the business, any payment or advance beyond the amount of capital he has agreed to subscribe, is entitled to interest thereon at the rate of________% per annum—6% per annum. [Refer Section 13(d)]
  68. True/ False: A partner shall indemnify the firm for any loss caused to it by his wilful neglect in the conduct of the business of the firm—True. [Refer Section 13, while Section 10 deals with loss due to Fraud]
  69. Section______deals with the property of the firm—Section 14.
  70. Goodwill—As per Section________, subject to contract between the partners, the property of the firm includes ‘goodwill’ of the business—Section 14.
  71. True/ False: Unless the contrary intention appears, property and rights & interests in property acquired with money belonging to the firm are deemed to have been acquired for the firm—True. [Refer Section 14]
  72. Exclusive Use—As per Section________of the Partnership Act, 1932, the property of the firm shall be held and used by the partners exclusively for the purposes of the business—Section 15.
  73. True/ False: If a partner derives any profits for himself from any transaction of the firm, or from the use of the property or business connection of the firm or the firm name, he shall account for that profit and pay it to the firm—True. [Refer Section 16]
  74. True/ False: If a partner carries on any business of the same nature as and competing with that of the firm, he shall account for and pay to the firm all profits made by him in that business—True. [Refer Section 16]
  75. Where a change occurs in the constitution of a firm, the mutual rights and duties of the partners in the reconstituted firm remains the_______as they were immediately before the change, as far as may be—Same  [Refer Section 17]
  76. Where a firm constituted for a fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of which kind of partnership—Partnership at will. [Refer Section 17(b)]
  77. True/ False: Where a firm constituted to carry out one or more adventures or undertakings carries out other adventures or undertakings, the mutual rights and duties of the partners in respect of the other adventures or undertakings are the same as those in respect of the original adventures or undertakings—True. [Refer Section 17]
  78. Partner as Agent—As per Section________of the Partnership Act, 1932, a partner is the agent of the firm for the purposes of the business of the firm—Section 18.
  79. “Implied authority” of partner as agent of the firm have been dealt with under Section_______of the Partnership Act, 1932—Section 19.
  80. The authority of a partner to bind the firm conferred under Section 19 of the Partnership Act, 1932 is called—Implied Authority. [Refer Section 19]
  81. True/ False: In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to submit a dispute relating to the business of the firm to arbitration—True. [Refer Section 19]
  82. True/ False: In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to open a bank account on behalf of the firm in his own name—True. [Refer Section 19]
  83. True/ False: In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to compromise or relinquish any claim or portion of a claim by the firm—True. [Refer Section 19]
  84. True/ False: In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to withdraw a suit or proceeding filed on behalf of the firm—True. [Refer Section 19]
  85. True/ False: In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to admit any liability in a suit or proceeding against the firm—True. [Refer Section 19]
  86. True/ False: In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to acquire immovable property on behalf of the firm—True. [Refer Section 19]
  87. True/ False: In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to transfer immovable property belonging to the firm—True. [Refer Section 19]
  88. True/ False: In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to enter into partnership on behalf of the firm—True. [Refer Section 19]
  89. Section________of the Partnership Act, 1932 empowers, by contract between the partners, to extend or restrict the implied authority of any partner—Section 20.
  90. True/ False:Any act done by a partner on behalf of the firm which falls within his implied authority binds the firm, unless the person with whom he is dealing knows of the restriction or does not know or believe that partner to be a partner—True. [Refer Section 20]
  91. Authority in Emergency—A Partner has authority, in an emergency, to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, in his own case, acting under similar circumstances, and such acts bind the firm. Such authority is given under Section______of the Partnership Act, 1932—Section 21.
  92. Intent to Bind­­—In order to bind a firm, an act or instrument done or executed by a partner or other person on behalf of the firm shall be done or executed in the firm name, or in any other manner expressing or implying an_______ to bind the firm—Intention. [Refer Section 22]
  93. Evidentiary Value—An admission or representation made, in the ordinary course of business, by a partner concerning the affairs of the firm is evidence against the firm—True. [Refer Section 23]
  94. Evidentiary Value—As per Section_________of the Partnership Act, 1932, an admission or representation made by a partner, ordinary course of business, concerning the affairs of the firm is evidence against the firm—Section 23.
  95. Notice to a partner who habitually acts in the business of the firm of any matter relating to the affairs of the firm operates as notice to the firm, except in the case of a fraud on the firm committed by or with the consent of that partner—True. [Refer Section 24]
  96. As per Section______of the Partnership Act, 1932, every partner is liable, jointly and severally, for all acts of the firm done while he is a partner—Section 25
  97. Wrongful acts—Where, by the wrongful act or omission of a partner acting in the ordinary course of the business of a firm, or with the authority of his partners, loss or injury is caused to any third party, or any penalty is incurred, the firm is liable therefor to the same extent as the partner—True. [Refer Section 26]
  98. Misapplication—Where a partner acting within his apparent authority receives money or property from a third party and misapplies the firm is ______to make good the loss—Liable. [Refer Section 27]
  99. Misapplication—Where a firm in the course of its business receives money or property from a third party, and the money or property is misapplied by any of the partners while it is in the custody of the firm is ______to make good the loss—Liable. [Refer Section 27]
  100. A legal principle (like under India’s Partnership Act) where someone is treated as a partner and held liable for firm debts, even if not a true partner, because they represented themselves, or knowingly allowed themselves to be represented, as one, and a third party gave credit to the firm on that belief, protecting the public from fraudulent misrepresentation, is known as—Doctrine of Holding Out.
  101. Under Partnership Act, the doctrine of ‘Holding Out’ is incorporated under Section_______of the Partnership Act, 1932—Section 28.
  102. A transfer by a partner of his interest in the firm, either absolute or by mortgage, or by the creation by him of a charge on such interest, does not entitle the transferee, during the continuance of the firm, to interfere in the conduct of the business, or to require accounts, or to inspect the books of the firm—True. [Refer Section 29]
  103. Section_______of the Partnership Act deals with minor’s admission in firm for the purpose of sharing of profit—Section 30.
  104. A transfer by a partner of his interest in the firm, either absolute or by mortgage, or by the creation by him of a charge on such interest, entitles the transferee only to receive the share of profits of the transferring partner, and the transferee shall accept the account of profits agreed to by the partners—True. [Refer Section 30]
  105. A minor shall not be a partner in a firm because partner must be ‘competent to contract’—True. [Refer Section 30]
  106. A minor may not be a partner in a firm, but he may be admitted to the benefits of partnership—True. [Refer Section 30]
  107. A minor may not be a partner in a firm, but he may be admitted to the benefits of partnership with whose consent?—All the partners. [Refer Section 30]
  108. If the minor is admitted in the firm, such minor has a right to such share of the property and of the profits of the firm as may be agreed upon, and he may have access to and inspect and copy any of the accounts of the firm—True. [Refer Section 30]
  109. Minor’s share in firm is liable for the acts of the firm—True. [Refer Section 30(3)]
  110. Minor is not personally liable for the acts of the firm—True. [Refer Section 30(3)]
  111. Minor’s share is liable for the acts of the firm, but the minor is not personally liable for any such act—True. [Refer Section 30(3)]
  112. Minor admitted to benefits of partnership, shall not sue the partners for an account or payment of his share of the property or profits of the firm without ________ his connection with the firm—Severing.
  113. All the partners acting together or any partner entitled to dissolve the firm upon notice to other partners may elect in such suit to dissolve the firm, and thereupon the Court shall proceed with the suit as one for dissolution and for settling accounts between the partners, and the amount of the share of the minor shall be determined along with the shares of the partners— True. [Refer Section 30]
  114. At any time within ________months of his attaining majority, or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later, such person shall give public notice that he has elected to become or that he has elected not to become a partner in the firm—6-month. [Refer Section 30]
  115. If the minor on his attaining majority, or of his obtaining knowledge that he had been admitted to the benefits of partnership, fails to give public notice as to his declaration as partner, he shall become a partner in the firm on the expiry of ______ months—Six Months. [Refer Section 30]
  116. Where any person has been admitted as a minor to the benefits of partnership in a firm, the burden of proving the fact that such person had no knowledge of such admission until a particular date after the expiry of six months of his attaining majority shall lie on whom—The persons asserting that fact. [Refer Section 30]
  117. Personal Liability minor-turned Major—Where a minor becomes a partner, his rights and liabilities as a minor continue up to the date on which he becomes a partner, but he also becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership—True. [Refer Section 30]
  118. Intimation by Minor: True/ False: When a minor who has been admitted to the benefits of partnership in a firm attains majority and elects to become or not to become a partner, and the firm is then a registered firm, he, or his agent specially authorised in this behalf, may give notice to the Registrar that he has or has not become a partner—True. [Refer Section 63]
  119. No person shall be introduced as a partner into a firm without the consent of—All the existing partners. [Refer Section 31]
  120. No Pre-partner Liability—A person, except minor-turned partner, who is introduced as a partner into a firm does not thereby become liable for any act of the firm done before he became a partner—True [Refer Section 31]
  121. A partner may retire with the consent of—All the other partners. [Refer Section 32]
  122. A partner may retire in accordance with an express agreement by the partners—True [Refer Section 32]
  123. Where the partnership is at will, a partner may retire by giving notice in writing to_______of his intention to retire—All the other partners [Refer Section 32]
  124. Liability of Retired Partner—A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with—Such third party & and the partners of the reconstituted firm [Refer Section 32]
  125. Knowledge Absolves from Liability—A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement in case the third party is having knowledge of the retirement of such partner—True. [Refer Section 32]
  126. Continuance of Liability—Notwithstanding the retirement of a partner from a firm, he and the partners continue to be liable as partners to third parties for any act done by any of them which would have been an act of the firm if done before the retirement, until _________ is given of the retirement—Public Notice. [Refer Section 32]
  127. Outsider Beware—A retired partner is not liable to any third party who deals with the firm without knowing that he was a partner—True. [Refer Section 32]
  128. Liability of Notice—The public notice as to retiring partner to be given by whom?—Retired partner or by any partner of the reconstituted firm. [Refer Section 32]
  129. Section_______of the Partnership Act, 1932 deals with expulsion of partners—Section 33.
  130. Insolvency of a partner—Where a partner in a firm is adjudicated an insolvent he ceases to be a partner on the date on which__________, whether or not the firm is thereby dissolved—The order of adjudication is made. [Refer Section 34]
  131. Section 27 of the Indian Contract Act, 1872, declares agreements that restrain someone from practicing a lawful profession, trade, or business to be void. However Section_______of the Partnership Act is an exception and allows agreements in restraint of trade—Section 36.
  132. An outgoing partner may carry on a business competing with that of the firm and he may advertise such business but, subject to contract to the contrary, he shall not use the firm name—True. [Refer Section 36]
  133. An outgoing partner may carry on a business competing with that of the firm and he may advertise such business but, subject to contract to the contrary, he shall not represent himself as carrying on the business of the firm—True. [Refer Section 36]
  134. True/ False: An outgoing partner may carry on a business competing with that of the firm and he may advertise such business but, subject to contract to the contrary, he shall not solicit the custom of persons who were dealing with the firm before he ceased to be a partner—True. [Refer Section 36]
  135. A partner may make an agreement with his partners that on ceasing to be a partner he will not carry on any business similar to that of the firm within a specified period or within specified local limits. Such agreement shall be—Valid. [Refer Section 36]
  136. A partner may make an agreement with his partners that on ceasing to be a partner he will not carry on any business similar to that of the firm within a specified period or within specified local limits. Such agreement shall be valid, if the restrictions imposed are—Reasonable. [Refer Section 36]
  137. Where any member of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of _________% on the amount of his share in the property of the firm—6% per annum [Refer Section 37]
  138. Continuing Guarantee— True/ False: A continuing guarantee given to a firm, or to a third party in respect of the transactions of a firm, is, in the absence of agreement to the contrary, revoked as to future transactions from the date of any change in the constitution of the firm—True. [Refer Section 38]
  139. Chapter_______of the Partnership Act, 1932 deals with “dissolution of firm”—Chapter-6.
  140. The dissolution of partnership between all the partners of a firm is called the—Dissolution of Firm.
  141.  “Dissolution of firm” is defined under Section______of the Partnership Act, 1932—Section 39.
  142. True/ False: A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners—True. [Refer Section 40]
  143. Section______of the Partnership Act, 1932 deals with ‘Dissolution by Agreement’—Section 40.
  144. Section 41 of the Partnership Act, 1932 deals with—Compulsory Dissolution of Firm.
  145. When a firm is dissolved by the adjudication of all the partners or of all the partners but one as insolvent, such dissolution is called—Compulsory Dissolution. [Refer Section 41]
  146. When a firm is dissolved by the happening of any event which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership, such dissolution is called—Compulsory Dissolution. [Refer Section 41]
  147. Separate Adventure— True/ False: Where more than one separate adventure or undertaking is carried on by the firm, the illegality of one or more shall not of itself cause the dissolution of the firm in respect of its lawful adventures and undertakings—True. [Refer Section 41]
  148. True/ False: Subject to contract between the partners, a firm, if constituted for a fixed term, is dissolved by the expiry of that term—True. [Refer Section 42—Dissolution by Contingency]
  149. True/ False: Subject to contract between the partners, a firm, if constituted to carry out one or more adventures or undertakings, is dissolved by the completion thereof—True. [Refer Section 42—Dissolution by Contingency]
  150. True/ False: Subject to contract between the partners, a firm is dissolved by death of partners—True. [Refer Section 42—Dissolution by Contingency]
  151. True/ False: Subject to contract between the partners, a firm is dissolved by the adjudication of a partner as an insolvent—True. [Refer Section 42—Dissolution by Contingency].
  152. Where the partnership is at will, who may give notice for dissolution of firm to all the other partners of his intention to dissolve the firm—Any Partner. [Refer Section 43]
  153. True/ False: Where the ‘partnership is at will’, the firm is dissolved as from the date mentioned in the notice as the date of dissolution—True. [Refer Section 43]
  154. True/ False: Where the ‘partnership is at will’, and if no date is so mentioned, the firm is dissolved from the date of the communication of the notice—True. [Refer Section 43]
  155. Section______of the Partnership Act, 1932 deals with ‘Dissolution by Court’—Section 44.
  156. True/ False: At the suit of a partner, the Court may dissolve a firm on the ground that a partner has become of unsound mind—True. [Refer Section 44]
  157. True/ False: At the suit of a partner, the Court may dissolve a firm on the ground that a partner, other than the partner suing, has become permanently incapable of performing his duties as partner—True. [Refer Section 44]
  158. True/ False: At the suit of a partner, the Court may dissolve a firm on the ground that a partner, other than the partner suing, is guilty of conduct which is likely to affect prejudicially the carrying on of the business, regard being had to the nature of the business—True. [Refer Section 44]
  159. True/ False: At the suit of a partner, the Court may dissolve a firm on the ground that a partner, other than the partner suing, wilfully or persistently commits breach of agreements relating to the management of the affairs of the firm or the conduct of its business, or otherwise so conducts himself in matters relating to the business that it is not reasonably practicable for the other partners to carry on the business in partnership with hint—True. [Refer Section 44]
  160. True/ False: At the suit of a partner, the Court may dissolve a firm on the ground that a partner, other than the partner suing, has in any way transferred the whole of his interest in the firm to a third party, or has allowed his share to be charged, or has allowed it to be sold in the recovery of arrears of land-revenue or of any dues recoverable as arrears of land revenue due by the partner—True. [Refer Section 44]
  161. True/ False: At the suit of a partner, the Court may dissolve a firm on the ground that the business of the firm cannot be carried on save at a loss—True. [Refer Section 44]
  162. True/ False: At the suit of a partner, the Court may dissolve a firm on any ground which renders it just and equitable that the firm should be dissolved—True. [Refer Section 44]
  163. Post-Dissolution Liability—True/ False: Notwithstanding the dissolution of a firm, the partners continue to be liable as such to third parties for any act done by any of them which would have been an act of the firm if done before the dissolution, until public notice is given of the dissolution—True. [Refer Section 45]
  164. True/ False: Notwithstanding the dissolution of a firm, the estate of a partner who dies, or who is adjudicated an insolvent, or of a partner who, not having been known to the person dealing with the firm to be a partner, retires from the firm, is not liable under this section for acts done after the date on which he ceases to be a partner —True. [Refer Section 45]
  165. Mode of settlement of accounts between partners on dissolution of partnership firm is given under Section________of the Partnership Act, 1932—Section 48.
  166. True/ False: In settling the accounts of a firm after dissolution, losses, including deficiencies of capital, shall be paid first out of profits, next out of capital, and, lastly, if necessary, by the partners individually in the proportions in which they were entitled to share profits—True. [Refer Section 48]
  167. Rule of Appropriation—Where there are joint debts due from the firm, and also separate debts due from any partner, the property of the firm shall be applied in the first instance in payment of the debts of the firm, and, if there is any surplus, then the share of each partner shall be applied in payment of his separate debts or paid to him—True. [Refer Section 48-Payment of firm debts and of separate debts]
  168. Rule of Appropriation—The separate property of any partner shall be applied first, in the payment of his separate debts, and the surplus (if any) in the payment of the debts of the firm—True. [Refer Section 48-Payment of firm debts and of separate debts]
  169. Return of Premium— True/ False: Where a partner has paid a premium on entering into partnership for a fixed term, and the firm is dissolved before the expiration of that term otherwise than by the death of a partner, he shall be entitled to repayment of the premium or of such part thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the length of time during which he was a partner—True. [Refer Section 51-Payment of firm debts and of separate debts]
  170. Right to Lien—True/ False: True/ False: Where a partnership is rescinded on the ground of the fraud or misrepresentation, the party entitled to rescind is entitled to a lien on, or a right of retention of, the surplus or the assets of the firm remaining after the debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and for any capital contributed by him—True. [Refer Section 52-Payment of firm debts and of separate debts]
  171. Rank as Creditor— True/ False: Where a partnership is rescinded on the ground of the fraud or misrepresentation, the party entitled to rescind is entitled to rank as a creditor of the firm in respect of any payment made by him towards the debts of the firm—True. [Refer Section 52-Payment of firm debts and of separate debts]
  172. Restrain to Use Firm Name: True/ False: After a firm is dissolved, every partner or his representative may, in the absence of a contract between the partners to the contrary, restrain any other partner or his representative from carrying on a similar business in the firm name or from using any of the property of the firm for his own benefit, until the affairs of the firm have been completely wound up—True. [Refer Section 53].
  173. Restrain to Use Firm Name: True/ False: Where any partner or his representative has bought the goodwill of the firm, there shall be no restraint on his right to use the firm name. —True. [Refer Section 53].
  174. Restraint on Trade—Partners may, upon or in anticipation of the dissolution of the firm, make an agreement that some or all of them will not carry on a business similar to that of the firm within a specified period or within specified local limits. Such agreement in restriction of trade us given under Section________?—Section 54.
  175. Restraint on Trade—Partners may, upon or in anticipation of the dissolution of the firm, make an agreement that some or all of them will not carry on a business similar to that of the firm within a specified period or within specified local limits, such agreement shall be ________ if the restrictions imposed are reasonable—Valid. [Section 54]
  176. Sale of Goodwill—True/ False: In settling the accounts of a firm after dissolution, the goodwill shall be included in the assets, and it may be sold either separately or along with other property of the firm—True. [Refer Section 55].
  177. Sale of Goodwill—True/ False: Where the goodwill of a firm is sold after dissolution, a partner may carry on a business competing with that of the buyer and he may advertise such business— True. [Refer Section 55]
  178. As per Section______of the Partnership Act, 1932, there shall be Registrars of Firms for the purposes of the Partnership Act—Section 57.
  179. An application for registration of firm is made under Section_______of the Partnership Act, 1932—Section 58.
  180. Section______of the Partnership Act provides that a firm name shall not contain words like “Crown”, “Emperor”, “Empress”, “Empire”, “Imperial”, “King”, “Queen”, “Royal”, or words expressing or implying the sanction, approval or patronage of Government except when the State Government signifies its consent to the use of such words as part of the firm name by order in writing—Section 58.
  181. Registration of Firm is done by Registrar of Firms under Section _______of the Partnership Act, 1932—Section 59.
  182. Alteration in Firm Name: True/ False: When an alteration is made in the firm name or in the location of the principal place of business of a registered firm, a statement may be sent to the Registrar accompanied by the prescribed fee, specifying the alteration, and signed and verified— True. [Refer Section 60]
  183. Closing and opening of branches: When a registered firm discontinues business at any place or begins to carry or business at any place, such place not being its principal place of business, any partner or agent of the firm may send intimation thereof to whom—Registrar of Firms [Refer Section 61]
  184. Change in Address: When any partner in a registered firm alters his name or permanent address, an intimation of the alteration may be sent by any partner or agent of the firm to whom—Registrar of Firms [Refer Section 62]
  185. Intimation of Reconstitution: True/ False: When a change occurs in the constitution of a registered firm any incoming, continuing or outgoing partner, any partner or the agent of any such partner or person specially authorised in this behalf, may give notice to the Registrar of such change or dissolution, specifying the date thereof and the Registrar shall make a record of the notice in the entry relating to the firm in the Register of Firms— True. [Refer Section 63]
  186. Intimation of Winding Up: True/ False: When a registered firm is dissolved any person who was a partner immediately before the dissolution, or the agent of any such partner or person specially authorised in this behalf, may give notice to the Registrar of such change or dissolution, specifying the date thereof and the Registrar shall make a record of the notice in the entry relating to the firm in the Register of Firms— True. [Refer Section 63]
  187. Intimation by Minor: True/ False: When a minor who has been admitted to the benefits of partnership in a firm attains majority and elects to become or not to become a partner, and the firm is then a registered firm, he, or his agent specially authorised in this behalf, may give notice to the Registrar that he has or has not become a partner—True. [Refer Section 63]
  188. Rectification—Who has power to rectify any mistake in order to bring the entry in the Register of Firms relating to any firm into conformity with the documents relating to that firm—Registrar of Firms. [Refer Section 64]
  189. Rectification—On whose application, the Registrar may rectify any mistake in such document or in the record or note thereof made in the Register of Firms—All the parties who have signed any document. [Refer Section 64]
  190. Rectification—At which time, the Registrar shall shall have power to rectify any mistake in order to bring the entry in the Register of Firms relating to any firm into conformity with the documents—At all times. [Refer Section 64]
  191. Amendment­—Section _______of the Partnership Act, 1932 deals with the amendment of Register of Firms by the order of the Court—Section 65.
  192. Rules of evidence—Any statement, intimation or notice recorded or noted in the Register of Firms shall, as against any person by whom or on whose behalf such statement, intimation or notice was signed, be conclusive proof of any fact therein stated—True.[Refer Section 68]
  193. Section________of the Indian Partnership Act, 1932 deals with effect of non-registration—Section 69.
  194. No Suit by Partner against Firm—True/ False: In case a partnership firm is unregistered, no suit to enforce a right arising from a contract partnership shall be instituted in any Court by or on behalf of a partner in a firm against the firm—True. [Refer Section 69]
  195. No Suit against Partner by Partner—True/ False: In case a partnership firm is unregistered, no suit to enforce a right arising from a contract partnership shall be instituted in any Court by or on behalf of a partner against a partner in the firm—True. [Refer Section 69]
  196. True/ False: In case a partnership firm is unregistered, no suit to enforce a right arising from a contract partnership shall be instituted in any Court by or on behalf of a partner, unless the firm is registered and the person suing is or has been shown in which document as a partner in the firm?—Register of Firms. [Refer Section 69]
  197. True/ False: No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm­—True. [Refer Section 69]
  198. Section 69 (effect of non-registration) shall not apply to any suit or claim of set-off not exceeding Rs._________ in value—Rs.100/-
  199. Any person who signs any statement, amending statement, notice or intimation containing any particular which he knows to be false or does not believe to be true, or containing particulars which he knows to be incomplete or does not believe to be complete, shall be punishable with—Imprisonment upto 3-months, or with fine, or with both. (Section 70)
  200. Section_____of the Partnership Act, 1932 deals with modes of giving public notice—Section 72.
  201. Notice to Registrar: In case of any change as to partners and attaining majority of minor of registered firm, the notice shall be given to whom—Registrar of Firms [Refer Section 72]
  202. Public Notice: In case of any change as to partners and attaining majority of minor of registered firm, the notice shall be given by publication in the Official Gazette and in at least one __________newspaper incirculating in the ________ where the firm to which it relates has its place or principal place of business—Vernacular; District.  [Section 72]
  203. Public Notice: In case of any change as to partners and attaining majority of minor of unregistered firm, the notice shall be given by publication in the Official Gazette and in at least one __________newspaper incirculating in the ________ where the firm to which it relates has its place or principal place of business—Vernacular; District.  [Section 72]
  204. No Notice to Registrar: True/ False: In case of any change as to partners and attaining majority of minor of unregistered firm, there is no requirement of giving notice to Registrar of Firms as the firm is not registered. Thus notice to Registrar of Firm is not necessary—True  [Section 72].
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