350+ MCQ Question Bank on Partnership Act [Part 1]

1. The Indian Partnership Act came into force on:
(a) 1st April 1932;
(b) 1st June 1932;
(c) 1st July 1932;
(d) 1st October 1932, except section 69

2. Prior to the enactment of Indian Partnership Act, 1932 the law on this subject was contained in:
(a) Code of Civil Procedure, 1908;
(b) Indian Contract Act, 1872;
(c) Companies Act, 1913
(d) Negotiable Instruments Act, 1881

3. The term ‘partnership’ has been defined under ………… of the Partnership Act, 1932:
(a) Section 3;
(b) Section 4;
(c) Section 5;
(d) Section 6

4. The Indian Partnership Act, 1932 extends to the whole of India except:
(a) The State of Jammu & Kashmir
(b) The State of Jammu & Kashmir and the State of Sikkim
(c) The State of Jammu & Kashmir and the North-eastern States of India
(d) The North-Eastern States of India

5. 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
(c) The business must start within six months from the date of agreement
(d) The business must be carried on by all or any one of them acting for all

6. A Joint Hindu Family is created:
(a) By a contract;
(b) By operation of law or status;
(c) By registration;
(d) By all the above mode

7. A club is the form of:
(a) Association not for profit;
(b) Partnership;
(c) Sole proprietorship;
(d) Public company

8. The Partnership Act, 1932
(a) Specifies the minimum number of partners in a firm
(b) Specifies the maximum number of partners in a firm;
(c) Both(a) and(b);
(d) None of the above

9. The ceiling on maximum number of partners in a firm is laid down in:
(a) The Partnership Act, 1932;
(b) The Indian Contract Act, 1872
(c) The Companies Act, 1956;
(d) Central Government notification

10. The test of partnership is laid down in the following case:
(a) Cox v. Hickman;
(b) Garner v. Murray;
(c) Mohiri bibi v. Dharmodas Ghosh
(d) None of the above

11. A partnership firm
(a) Is a legal person;
(b) Is not a legal person;
(c) Has a distinct legal personality
(d) None of the above

12. 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;
(d) Particular partnership

13. From among the following who cannot become a partner of the firm?
(a) A Hindu joint family;
(b) Minor;
(c) Director of a Company;
(d) A limited Company

14. Under section 4 of the Indian Partnership Act, 1932, partnership is a:
(a) Compulsory legal relationship;
(b) Voluntary legal relationship;
(c) A relation arising from status;
(d) A relation for a charitable purpose

15. A partnership in a banking business can have:
(a) Not more than 2 partners;
(b) Not more than 10 partners;
(c) Not more than 20 partners
(d) Unlimited partners

16. A partnership in a non-banking business can have:
(a) Not more than 2 partners;
(b) Not more than 10 partners;
(c) Not more than 20 partners
(d) Unlimited partners

17. A firm in steel business has 15 partners. It wants to include 15 more persons:
(a) It can admit 15 more partners.
(b) It can enter into partnership with a firm consisting of 15 partners in order to enjoy the same effect.
(c) Both of above
(d) None of above

18. The principle of … is applicable to partners in a partnership:
(a) Uberrimae fidei/Utmost Good Faith;
(b) Ultimate Trust;
(c) Insurable Interest;
(d) Blind Faith

19. Limited Liability partnership is a form of partnership that:
(a) Is not possible;
(b) Is allowed in certain circumstances in the Partnership Act, 1932;
(c) Is now abolished;
(d) Can be setup by LLP Act, 2008

20. Which of the following statements is true in respect of an HUF:
(a) A member of HUF can ask for an account of past profits
(b) On the death of a co-parcener the family business is dissolved
(c) A coparcener is liable to extent of his share in the family state
(d) A coparcener is an agent of another coparcener

21. Two Hindu Joint Families:
(a) Cannot unite to constitute a partnership
(b) Cannot unite to constitute a partnership, but their managing members may become partners.
(c) Can constitute partnership
(d) Both(a) and(b)

22. A partnership firm is:
(a) A legal person;
(b) Not a distinct legal entity from its partners
(c) A distinct legal entity from its partners;
(d) None of the above

23. A partnership cannot be constituted by:
(a) Two individuals;
(b) Two Hindu Joint families;
(c) Two partnership firms;
(d) Both(b) and(c)

24. A firm:
(a) Cannot become a partner;
(b) Can become a partner;
(c) Can become a partner with the permission of the court;
(d) Can become a partner with unanimous consent of all the partners

25. Select the odd one:
(a) Hindu Unlimited Family;
(b) Partnership;
(c) Company;
(d) Body Corporate

26. Partnership is a relationship, which arises from:
(a) Operation of law;
(b) An agreement;
(c) Status;
(d) Almighty

27. Which of the following is a valid partnership
(a) Partnership between kartas of two Hindu Joint Families
(b) Partnership between two Hindu Joint Family.
(c) Partnership between a Hindu Joint Family and firm;
(d) Both(b) and(c)

28. The relation of partnership arises from contract and not from status and in particular the Indian Partnership Act does not apply to the family business carried on by:
(a) Cutchi-Memons;
(b) Christians;
(c) Burmese Buddhist husband and wife;
(d) Mohammedans

29. 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;
(d) Partnership at will

30. In a partnership at will:
(a) There should be no provision in the contract between the partners for the duration of their partnership
(b) There should be no provision in their contract for the ending of their partnership
(c) Either(a) or;
(d) Both(a) and(b)

31. For constituting a partnership within the meaning of section 4 of the Indian Partnership Act, 1932:
(a) There has to be a business;
(b) The business must be lawful;
(c) It may be temporary or permanent;
(d) All the above

32. In determining whether a group of persons is OR is not a firm, regards shall be had to:
(a) Real relation between the parties;
(b) All relevant facts taken together
(c) Legal relation between the parties;
(d) Both(a) and(b)

33. The minimum number of persons required for a partnership is:
(a) 2;
(b) 5;
(c) 10;
(d) 20

34. The essential elements of partnership does not include:
(a) Partnership should be registered
(b) There must be an agreement to share profits of a business
(c) There must be mutual agency among partners
(d) There must be an association of two or more persons

35. The partnership relation does not exist when:
(a) A creditor taking a share of profits in lieu of interest and part payment of principal.
(b) A person receives a share of profit as a part of his remuneration.
(c) Share of profits given to workers as bonus.
(d) None of the above.

36. … does not take active part in conduct of the business.
(a) Dormant partner;
(b) Sub-partner;
(c) Both(a) and(b);
(d) Partner by estoppel

37. The partnership firms becomes an illegal association, when:
(a) The number of partners in a banking business exceeds 10
(b) The number of partners in a non-banking business exceeds 10
(c) The number of partners in a non-banking business exceeds 20;
(d) Both(a) and(c)

38. Where the maximum number of partners in a firm carrying on banking business exceeds ten and in any other firm exceeds twenty, then the partnership becomes a:
(a) Unlawful partnership;
(b) Illegal association;
(c) Limited liability partnership;
(d) Large partnership

39. If Partnership Act does not define an expression, then the reference shall be had to
(a) Indian Contract Act;
(b) Sale of Goods Act;
(c) Evidence Act;
(d) Companies Act

40. The unrepealed provisions of the Act shall continue to apply to firms, save insofar as they are inconsistent with the express provisions of the Partnership Act.
(a) Transfer of Property Act;
(b) Indian Evidence Act;
(c) Indian Contract Act;
(d) Sale of Goods Act

41. Which of these are not necessary for constituting a partnership?
(a) Sharing of business profits;
(b) Mutual agency;
(c) Two or more persons;
(d) Written contract

42. Which of this is not a valid partnership?
(a) Minor admitted to benefits of the partnership;
(b) Company admitted as a partner
(c) Partnership between Indian national & alien friend;
(d) Partnership between two HUFs

43. To form a partnership, the minimum capital contribution should be:
(a) Rs. 1 lakh;
(b) Rs. 10 lakh;
(c) Rs. 1 crore;
(d) There is no minimum limit

44. Property of firm does not include:
(a) All property which the partners have originally brought into the common stock of the business;
(b) Goodwill of the business;
(c) Personal properties belonging to the partner
(d) Property acquired by the funds of the firm

45. Liability of a partner is—
(a) Limited to the extent of his share of the business profits;
(b) Unlimited;
(c) Limited to the extent of capital contributed;
(d) Limited to the extent of net worth of the firm

46. Which is NOT a characteristic of partnership firms?
(a) Perpetual succession;
(b) Unlimited liability of partners;
(c) Mutual agency
(d) Sharing of profits of business

47. The maximum number of persons permissible for a valid partnership for doing Banking business is:
(a) 2;
(b) 10;
(c) 15;
(d) 20

48. For which of the following purpose is partnership formed?
(a) Political purpose;
(b) Altruistic purpose;
(c) Social purpose;
(d) Business purpose

49. Which of these sharing arrangements reflects a partnership?
(a) By a lender of money to persons engaged or about to engage in any business
(b) By a servant or agent as remuneration
(c) By a partner who does not actively engage himself in the day to day business affairs
(d) By the widow or child of the deceased partner as annuity

50. To form a partnership, the parties should share
(a) Only profits;
(b) Only losses;
(c) Both profits and losses
(d) Profits and losses but some partners may not share losses

51. In determining whether a group of persons is or is not a firm; or whether a person is or is not a partner in a firm, regard shall be had to the real relation between the parties. This is ascertained from:
(a) All material facts of the case;
(b) All relevant facts taken together;
(c) All relevant provisions of Partnership Act;
(d) The intention of the parties

52. Where no time is expressly stated for its duration and there is no contract to fix the duration, the partnership may be terminated at a moment’s notice by the other party. This partnership is called –
(a) Joint Venture;
(b) Partnership at will;
(c) Particular partnership;
(d) Co-partnership

53. When a partner of a firm agrees to share his own share of profits with an outsider, it is called:
(a) Sub-partnership;
(b) Co-partnership;
(c) Undisclosed partnership;
(d) Profit sharing scheme

54. Which of the parties may be admitted as a partner?
(a) Person of unsound mind;
(b) Minor;
(c) Alien enemies;
(d) An insolvent

55. A new partnership may be formed by the following persons:
(a) One major and all other minors;
(b) One minor and minimum two other majors;
(c) Minimum two majors and minor only admitted to the benefits of firm;
(d) One minor and another minor

56. Where the goodwill of the firm is sold after dissolution, a partner may carry on a business competing with that of the buyer and he, subject to the agreement between the buyer and himself, may not:
(a) Use the firm name;
(b) Represent himself as carrying on the business of the firm;
(c) Solicit the customers of the old firm;
(d) All the above

57. Out of the following statements which is true –
(a) A sleeping partner is also liable to the third parties
(b) Law of partnership is an extension of the law of guarantee
(c) The registration of firm is compulsory;
(d) Partnership has a separate legal entity

58. Registration of the firm under the Partnership Act is:
(a) Optional;
(b) Obligatory;
(c) Compulsory;
(d) Necessary

59. A partnership firm has to be registered with:
(a) Director of firms;
(b) Registrar of firms;
(c) Registrar of companies;
(d) Competent court

60. In case of an unregistered partnership firm
(a) A partner cannot file a suit against the firm
(b) A partner cannot file a suit against any partner of the firm
(c) The firm cannot file a suit against third parties to enforce a contract;
(d) All the above

61. The Partnership Act by section 69 indirectly renders the registration of firm compulsory by providing:
(a) Certain disabilities;
(b) Penalties on partners of un-registered firms
(c) Penalties on un-registered firms;
(d) Monetary fine on partners

62. A firm may be registered:
(a) In the beginning when it is being formed;
(b) At a later date, after its formation
(c) When the court orders the firm to be registered
(d) When the Income-tax Department insists on its registration

63. In the application for registration of a firm, which of the following is not required to be given:
(a) Firm name;
(b) The duration of the firm;
(c) Names of any other places where the firm carries on business;
(d) Capital contribution of partners

64. Which of the following details is required to be given in an application for registration of a firm?
(a) Capital contribution of partners;
(b) PAN number of the partners
(c) Place of business of the firm;
(d) Bank Accounts of the firm

65. Application for Registration of firms should be signed by-
(a) All the partners;
(b) Agents of partners specially authorized in this behalf
(c) All the active partners;
(d) Either(a) or(b)

66. A firm name shall not contain any of the following words:
(a) Crown, Imperial;
(b) Emperor, Empress;
(c) King, Queen;
(d) All the above

67. Registration of firm is effective from—
(a) The date when the Registrar files the statement and makes entries in the Register of firms
(b) The date of presentation of the statement to the Registrar of firms
(c) The date published in the Official Gazette;
(d) The date intimated to the partners

68. After the registration of a firm, if a partner retires, such a change in the constitution of the firm requires:
(a) A notice to be sent to the Registrar;
(b) New registration
(c) An affidavit of a managing partner about the change;
(d) No intimation

69. Intimation about closing and opening of a branch, after registration, is required to be given by:
(a) All the partners jointly;
(b) Any partner or agent of the firm
(c) Either(a) or(b);
(d) Neither(a) or(b)

70. If an unregistered firm intends to file a suit against a third party, it should get itself registered before filing the suit.
(a) False, as such disability can never be removed.
(b) True, as after registration firm’s disability to file such suit is removed.
(c) It should take permission of the court before filing the suit;
(d) Either(b) or(c)

71. Which of the following are the disabilities of an unregistered firm?
(a) It cannot file a suit against third parties;
(b) It cannot claim a set-off exceeding 100
(c) Its partners cannot file a suit against the firm;
(d) All the above

72. In case of an unregistered firm the partners can file a suit for the:
(a) Dissolution of the firm;
(b) Accounts of dissolved firm;
(c) Realization of property of dissolved firm;
(d) All the above

73. Any person who supplies false information to the Registrar of firms, shall be liable to punishment with imprisonment up to ………
(a) Three months;
(b) Six months;
(c) Nine months;
(d) Twelve months

74. The Register of firms shall be open to inspection:
(a) By any person on payment of prescribed fees;
(b) By partners only
(c) By Government Officials only;
(d) By any person free of cost

75. Which of the following statements is incorrect?
(a) The registration of a firm is a condition precedent to the right to institute a suit
(b) If a partner refuses to sign the application for registration, then registration can be done only by dropping the name of such a partner from the firm
(c) A third party cannot file a suit against an un-registered firm
(d) Application for registration of firm must be signed by all the partners

76. As per section 18, a partner in a partnership firm functions:
(a) In a dual capacity of principal and agent;
(b) As a principal;
(c) As an agent
(d) Neither as a principal nor as an agent

77. If a partner commits fraud in the conduct of the business of the firm:
(a) He shall indemnify the firm for any loss caused to it by his fraud;
(b) He is not liable to the firm;
(c) He is liable to the partners;
(d) He is liable to the third parties

78. Partners are bound to carry on the business of the firm—
(a) To the greatest common advantage;
(b) For the welfare to the society
(c) For the advantage of the family members;
(d) For earning personal profits

79. Which of the following statements is/are false:
(a) A partner has a right to share profits;
(b) Right to interest on capital
(c) Right of access to books;
(d) Right to receive remuneration

80. Which of the following statements is correct?
(a) A partner can be admitted in a firm by the consent of the majority of partners
(b) A minor can be a partner in a firm
(c) The liability of a retired partner to third parties continues even after his retirement
(d) A partner of an unregistered firm cannot sue for the dissolution of a firm

81. Which are the matters that require unanimous consent of all the partners:
(a) Admission of a partner;
(b) Transfer by a partner of his interest in the firm
(c) Fundamental change in the nature of the business;
(d) All the above

82. A partner has an implied authority to bind a firm by his act if he:
(a) Acquires immovable property on behalf of the firm
(b) Opens a banking account on behalf of the firm in his own name
(c) Withdraws a suit or proceeding filed on behalf of the firm;
(d) None of the above

83. The liability of a minor partner is limited to the extent of:
(a) His share in the firm;
(b) His personal assets
(c) His share in the firm as well as his personal assets;
(d) He is not liable

84. A minor who is admitted to the benefit of partnership:
(a) Is entitled to such share of property and of the profits of the firm as may be agreed upon.
(b) Has a right to have access to and inspect and copy any of the accounts of the firm.
(c) He can sue for an account and profits when he severs his connection from the firm.
(d) All the above

85. Subject to contract between the partners, a partner does not have any one of the following rights:
(a) Right to receive remuneration;
(b) Right to share profits
(c) Right to take part in the business;
(d) Right to claim interest on capital

86. The authority of a partner to bind the firm for his acts as contained in section 19 of the Partnership Act is known as:
(a) Express authority;
(b) Legal authority;
(c) Implied authority;
(d) Managerial authority

87. An act is to be said done in implied authority if:
(a) Done in the usual way to carry partnership business
(b) Done in the conduct of the business of the kind carried on by the firm
(c) Done in the firm name or in any other manner exercising or implying an intention to bind the firm
(d) All the above

88. An act done by a partner is binding on the firm if it is done in the name of:
(a) The partner’s own name;
(b) God;
(c) Firm;
(d) Law

89. A partner can bind a firm by his act if he:
(a) Submits a dispute to arbitration;
(b) Withdraws suit or proceeding filed on behalf of the firm
(c) Transfer immovable property belonging to the firm;
(d) Buys goods on behalf of the firm

90. For ordinary business matters the decisions in the firm are taken on the basis of:
(a) Decision of majority of partners;
(b) Unanimous decision of partners;
(c) 2/3 majority;
(d) 1/3 majority

91. Which of the following statements is incorrect?
(a) A partner is not an agent of other partners
(b) On becoming major, the liability of a minor admitted to the benefits of partnership and now becoming a partner becomes unlimited from the date of majority
(c) Partners can change the nature of the business of the firm by majority decision;
(d) All the above

92. When a minor is admitted to the benefit of the partnership, which of the following statements is false:
(a) Such minor’s share is liable for the acts of the firm;
(b) The minor is also personally liable
(c) The minor has a right to share in the property and profits of the firm
(d) The minor cannot sue for the accounts if intends to continue in the firm

93. For changing the nature of a business:
(a) Consent of all the partners is needed;
(b) Consent of majority of partners is needed
(c) Consent of court is needed;
(d) Consent of Registrar of firm is needed in reference to conduct of the business

94. The partners take decisions on the basis of majority in:
(a) All matters;
(b) Ordinary matters;
(c) Fundamental matters
(d) No matters since unanimous consent is required

95. An unregistered partnership:
(a) Can sue on matters arising otherwise than out of contract
(b) Can sue on matters arising out of contract;
(c) Cannot be sued;
(d) Can sue and be sued

96. Every partner has a right to have access to and inspect and copy any of the books of account of the firm.
(a) During the continuation of the partnership;
(b) During the dissolution proceedings
(c) After dissolution;
(d) All the above

97. Where a partner is entitled to interest on the capital subscribed such interest shall be payable.
(a) Only out of profits;
(b) Out of capital in case of loss;
(c) Out of borrowings
(d) Out of sale of partnership assets

98. Subject to contract between the partners, and pursuant to section 13 of the Indian Partnership, the following statement is correct:
(a) Partner is not entitled to interest on the capital subscribed by him
(b) Partner is not entitled to interest on the advance made over and above the share of capital
(c) Partner is not entitled to remuneration for taking part in the conduct of the business
(d) All the above

99. Any dispute arising as to ordinary matters connected with the business may be decided by-
(a) Unanimous consent of all the partners;
(b) Consent of majority partners
(c) Decision of Court;
(d) Consent of the Working partners

100. A change in nature of business can be effected only based on—
(a) Unanimous consent of all the partners;
(b) Consent of majority partners
(c) Consent of the active partners;
(d) Decision of Court

101. Property of the firm does not include:
(a) Trademark owned by the firm;
(b) Property acquired by or for the firm
(c) Goodwill of the business;
(d) Property belonging to the partners

102. Where a firm constituted for a fixed term continues to carry on business after the expiry of the said term, the mutual rights and duties of the partners will —
(a) Be decided by the Courts;
(b) Be decided upon by the working partners
(c) Be similar as that of partnership at Will;
(d) Be extinguished

103. If a partner advances money to the firm he will be entitled to interest on capital:
(a) Only in case of profits;
(b) Whether there are profits or not
(c) At market rate, if the deed does not provide
(d) Statement is wrong since he is not entitled to interest on advances

104. Which of this falls outside the implied authority?
(a) Taking loan by pledging goods of the firm
(b) Accepting Bills of Exchange on behalf of the firm
(c) Submit disputes for arbitration;
(d) Settle accounts with customers

105. Which of these acts are within the implied authority?
(a) Enter into partnership on behalf of the firm
(b) Admit any liability in a suit against the firm
(c) Withdraw a suit filed on behalf of the firm;
(d) To issue cheques on behalf of the firm

106. The implied authority of any partner is subject to:
(a) Usage or customs of the trade;
(b) Specific authority of the partners;
(c) Both(a) and(b)
(d) Either(a) or(b)

107. Notice to a partner operates as notice to the firm. For such purpose, notice may be given to:
(a) All the partners jointly;
(b) A partner who habitually acts in the business of the firm
(c) Any two partners;
(d) Only the dormant partners

108. A minor may give public notice of his decision to continue or withdraw from the firm on his attaining majority within:
(a) Three months;
(b) Six months;
(c) Nine months;
(d) One year

109. On attaining majority when the minor partner elects not to become a partner, his share is not liable for any acts of the firm done —
(a) After his admission to benefits of partnership;
(b) After the date of giving public notice
(c) After the date of attaining majority;
(d) After the date of dissolution of firm

110. A minor, before attaining the age of majority, has the right to:
(a) Receive agreed share of property and of profits of the firm
(b) Access and to inspect the accounts of the firm
(c) Sue the firm for his share of property or profits if he wants to sever his connection with the firm
(d) All of the above

111. When a minor on attaining the age of majority, has elected to become a partner, he becomes personally liable to third parties for all the acts of the firm from the date of his:
(a) Decision to become a partner;
(b) Attaining the age of majority
(c) Admission to the benefits of the firm;
(d) Attaining majority or decision to become a partner, whichever is earlier

112. ‘Act of a firm’ in the Partnership Act means:
(a) Authorized acts
(b) Any such act or omission which give rise to a right enforceable by or against the firm
(c) Such acts which do not give rise to a right enforceable by or against the firm;
(d) Actual acts

113. According to section 31 of the Act, subject to the contract between the partners and to the provisions of section 30, no person shall be introduced as a partner into a firm:
(a) Without the consent of majority of partners;
(b) Without the consent of all the existing partners
(c) Without the consent of Registrar of Firms;
(d)(a) and(c)

114. If a partner is adjudicated insolvent which of the following are the consequences?
(a) Ceases to be a partner in the firm on the date the order of adjudication is made.
(b) The estate of the insolvent partner is not liable for the act of the firm even after the date of order of adjudication
(c) The firm stands dissolved on the date of adjudication unless there is a contract to the contrary
(d) All the above

115. A partner may not be expelled from the firm by any majority of partners unless:
(a) The terms of partnership agreement confer the power to expel a partner
(b) The expulsion is made by a majority of the partners of the firm
(c) The decision of expulsion is made by all the partners in good faith;
(d) All the above

116. Unless there is a contract to the contrary, a firm is automatically dissolved on:
(a) The expiry of fixed term;
(b) Death of a partner;
(c) Insolvency of a partner;
(d) All of the above

117. Under Section 36 of this Act an outgoing partner may carry on business competing with that of the firm and he may advertise such business, but, subject to contract to the contrary he may not
(a) Use the firm name;
(b) Represent himself as the partner of the firm
(c) Solicit the customers who were dealing with the firm before he ceased to be a partner
(d) All of the above

118. Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he will not carry on any competing business, such an agreement will be valid if:
(a) Such restraint is in respect of carrying of any business similar to that of the firm
(b) Such agreement is made by the partners beforehand i.e. well in advance
(c) Such agreement is made without any specific reference to time period.
(d) Such agreement is made without reference to local limits

119. A notice in writing by one partner must be given to all the partners of the firm in case of:
(a) Dissolution on the happening of contingencies;
(b) Dissolution of partnership at will
(c) Dissolution by court;
(d) Compulsory dissolution

120. The following is a ground for dissolution of partnership by the Court:
(a) Insanity of a partner;
(b) Incapacity of a partner to perform his duty as a partner
(c) Wilful misconduct by a partner likely to affect prejudicially the carrying on of the business
(d) All the above

121. A firm is compulsorily dissolved
(a) By adjudication of any partner of the firm as insolvent;
(b) By the death of a partner
(c) By adjudication of all the partners or of all the partners but one is insolvent
(d) In any of the above circumstances

122. In settling the account of the firm after dissolution, the assets of a firm are to be applied in paying
(a) Joint debts to third parties;
(b) Advances of each partner;
(c) To each partner what is due from the firm in respect of capital;
(d) All of the above

123. The partner’s authority to act for the firm and to bind their co-partners continues even after the dissolution of the firm:
(a) To wind up the affairs of the firm;
(b) To complete the unfinished transactions
(c) Both of above;
(d) None of the above

124. A public notice under the Partnership Act is given according to section 72 in the following cases:
(a) Admission of new partner;
(b) Retirement or expulsion of a partner;
(c) Minor attaining majority;
(d) All the above

125. The dissolution of a partnership firm does not take place
(a) By operation of law on the happening of certain events
(b) In accordance with the partnership deed;
(c) By mutual agreement of all the partners
(d) On the death of a partner, if the partnership deed provides that death of the partner shall not dissolve the firm

126. Which of the following is not a mode of retirement of partner?
(a) Retirement with other partners’ consent
(b) Retirement in accordance with an express agreement
(c) In case of a partnership at will by giving written notice of his intention to retire
(d) Retirement on attaining the age of superannuation

127. In case of partnership at will, a retiring partner has to give a written notice —
(a) To all the partners;
(b) To all the active partners;
(c) To the firm;
(d) To the Registrar of Firms

128. Retiring partner continues to remain liable to third parties for acts of the firm :—
(a) Until public notice is given of the retirement;
(b) From the date of retirement
(c) Up to the close of the financial year in which he retires;
(d) So long as the firm uses his name

129. To avoid liability to third parties, public notice of retirement should be given. Such public notice must be given—
(a) By retired partner only;
(b) By any partner of the reconstituted firm;
(c) Either(a) or(b)
(d) Neither(a) nor(b)

130. A partner can be expelled from a firm:
(a) If power to expel is conferred by express agreement.
(b) If the power is exercised in good faith.
(c) By majority of partners after giving opportunity of explanation.
(d) All of the above

131. A retired partner may be liable:
(a) For debts incurred before retirement.
(b) For debts incurred after retirement until public notice is given.
(c) Either(a) or(b);
(d) Both(a) and(b)

132. Which of the following conditions is not necessary for expulsion of a partner?
(a) The power of expulsion must be given in the partnership deed.
(b) Such power has been exercised by a majority of the partners.
(c) Such power has been exercised in good faith for the interest of the firm and not used as vengeance against a partner;
(d) An FIR has been filed in the Police Station

133. Unless there is a contract to the contrary, the effect of insolvency of a partner is that:
(a) The firm is dissolved;
(b) The firm is not automatically dissolved
(c) The firm is also deemed insolvent;
(d) The firm is reconstituted

134. No public notice is required:
(a) On the death of a partner;
(b) On minor attaining majority;
(c) Retirement of partner
(d) Dissolution of firm

135. An outgoing partner can carry on a competing business and also advertise such business. For this purpose, in the absence of contract to the contrary —
(a) He can use the firm’s name
(b) He cannot use the firm’s name
(c) He cannot represent himself as carrying on the business of the firm.
(d) Both(b) and(c)

136. As per section 38 when constitution of the firm is changed, the continuing guarantee given to the firm or to a third party in respect to the transactions of the firm:
(a) Is not affected at all;
(b) Is revoked as to future transactions;
(c) Is revoked with retrospective effect;
(d) Ceases to be continuing guarantee

137. Dissolution of partnership between all the partners of a firm is called:
(a) Dissolution of partnership;
(b) Dissolution of partners;
(c) Dissolution of the firm;
(d) Reconstitution of firm

138. If all partners, or all but one partner, of the firm are declared insolvent:
(a) Firm is automatically dissolved;
(b) Firm becomes illegal association;
(c) Firm is also declared insolvent;
(d) Firm becomes illegal entity

139. A firm is compulsorily dissolved on the:
(a) Death of a partner;
(b) Adjudication of a partner as an insolvent
(c) Expiry of a fixed period for which the firm was constituted
(d) Business of the firm becoming illegal due to happening of an event

140. If any event happens which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership, then
(a) Firm is compulsorily dissolved;
(b) Partnership is reconstituted
(c) Firm becomes an illegal association;
(d) Firm is declared insolvent

141. Unless agreed otherwise, a firm is dissolved by the death of a partner.
(a) True;
(b) False;
(c) Partly True;
(d) None of the above

142. A partnership may be dissolved by any partner by giving a notice to other partners in case of:
(a) Partnership at will;
(b) Partnership for a fixed duration;
(c) Particular partnership
(d) Limited liability partnership

143. Which of the following do not constitute a ground for dissolution by Court?
(a) Misconduct by partner;
(b) Transfer of interest by partner;
(c) Just and equitable grounds
(d) Insolvency of a partner

144. Upon dissolution of firm, losses, including deficiencies of capital, shall be paid first:
(a) Out of Profits;
(b) Out of Capital;
(c) By the partners in their profit sharing ratio
(d) By the partners equally

145. Upon dissolution of firm, losses, including deficiencies of Capital, shall be paid first out of Profits and then out of Capital and finally—
(a) Out of Profits;
(b) Out of Capital;
(c) By the partners individually in their profit sharing ratio
(d) By the partners equally

146. In settling the account after dissolution, the firm’s assets shall be first applied in:
(a) Payment of Debts of the firm to third parties;
(b) Payment of partner’s Loan
(c) Payment of partner’s Capital;
(d) Distribution to partners in their Profit Sharing Ratio

147. Upon dissolution, the firm’s assets after settlement of the debts of the firm to third parties and partners’ Loans, shall then be applied in—
(a) Payment of debts of the firm;
(b) Advances of each partner;
(c) Payment of partner’s capital
(d) Distribution to partners in their Profit Sharing Ratio

148. Where a partnership contract is rescinded on grounds of fraud or misrepresentation, the party entitled to rescind, is also entitled to rank, in respect of any payment made by him for the firm’s debts as a:
(a) Creditor;
(b) Debtor;
(c) Lender;
(d) Guarantor

149. After a firm is dissolved, every partner or his representative may restrain any other partner or his representative from carrying on similar business in the firm’s name or by using firm’s property for own benefit, until:
(a) The affairs of the firm are completely wound up;
(b) Dissolution of the firm
(c) Date of public notice of dissolution;
(d) Date of signing of dissolution deed

150. In settling the accounts of a firm after dissolution, the goodwill of the firm:
(a) Must be included in the assets;
(b) May be sold separately;
(c) May be sold along with the assets of the firm;
(d) All of the above

151. When goodwill of the firm is sold upon dissolution, and a partner carries on a competing business, which of the following is permissible?
(a) Use of firm’s name;
(b) Holding out as carrying on the business of the firm.
(c) Soliciting the custom of the firm’s customers/suppliers etc.;
(d) None of the above

152. Public notice in case of a firm is not required in case of:
(a) Admission of a partner;
(b) Retirement of a partner;
(c) Expulsion of a partner
(d) Dissolution of the firm

153. Public notice is required to be given in the case
(a) Admission of minor
(b) Exercising option to continue or not, on attainment of majority by the minor
(c) Death of a partner;
(d) Retirement by sleeping partner

154. When goodwill of the firm is sold, the selling partners may agree with the buyer that they will not carry on similar business, within a specified period or within specified local limits. Such agreement in restraint of trade shall be :
(a) Valid, if the restrictions imposed are reasonable
(b) Valid(whether restrictions are reasonable or not);
(c) Void;
(d) Voidable

155. Public Notice under the Partnership Act, is given in the following manner:
(a) Serving a copy of the Notice to the Registrar of firms
(b) Publishing the Notice in the Official Gazette
(c) Publishing the Notice in one vernacular newspaper circulating in the district where the firm’s principal place of business is situated;
(d) All of the above

156. Identify the incorrect statements:
(1) When a firm is constituted for a fixed duration it cannot be dissolved before the expiry of that duration.
(2) A partnership at will can be dissolved by the wish of even a single partner.
(3) When a partner of a firm becomes lunatic, the firm dissolves automatically.
(4) Even after dissolution, partners of a firm continue to be liable for acts of the firm until the affairs of the firm are finally wound up.
Code:
(a) 1, 2 and 3;
(b) 1, 3 and 4;
(c) 1, 2 and 4;
(d) 2, 3 and 4

157. A, B and C are partners of an unregistered firm. D owes this firm ₹1000 on a contract. The firm filed a suit againstd. The suit is dismissed for non-registration of the firm. The firm is registered later on. In this case which one of the following statements is MOST appropriate.
(a) The firm can successfully bring the suit against D
(b) Registration must have been effected by the firm, before a suit is filed in the court
(c) The firm cannot file suit against D;
(d) None of the above

158. X, Y and Z are partners in a firm. X, without the authority of Y and Z buys certain shares in his name out of partnership money. Will ‘shares’ constitute partnership property?
(a) Yes;
(b) No;
(c) Can’t say;
(d) Depends on the facts of the case

159. A, B and C are partners. C is a sleeping partner who is not known to the creditors. C retires without giving public notice of his retirement. Is C liable for subsequent debts incurred by A andb.
(a) No, since he is a sleeping partner;
(b) Yes, since public notice of retirement must be given
(c) Difficult to say;
(d) None of the above

160. An act, to be called an ‘act of a firm’, within the meaning of Section 2(a) of the Indian Partnership Act, 1932 is –
(a) Every act of the partners
(b) Only such acts which give rise to a right enforceable by or against the firm
(c) Such acts which do not give rise to a right enforceable by or against the firm
(d) Either(a) or(b) or(c)

161. “Partnership” means
(a) Joint venture
(b) Agreement between the persons to share the profit of a business carried on between them
(c) Agreement between the persons to do some work
(d) None of the above

162. The historic case laying down the test for determining the existence of partnership is
(a) Grave vs. Smith
(b) Waugh vs. Carver
(c) Bloream vs. Pell
(d) Cox vs. Hickman

163. As per Section 5 of the Indian Partnership Act, the relationship of partnership is created by :
(a) Status
(b) Contract
(c) Statute
(d) None of the above

164. A partnership is partnership at will
(a) When no provision is made for duration of partnership
(b) When no provision is made for determination of partnership
(c) Both(a) and(b) are true
(d) Either(a) or(b) is true

165. An agreement in restraint of trade in a partnership under Section 11 of the Indian Partnership Act is
(a) Valid
(b) Voidable
(c) Void
(d) Illegal

166. Goodwill of a partnership business is the property of the partnership
(a) Under Section 14
(b) Under Section 13
(c) Under Section 12
(d) Under Section 11

167. Out of the following statements, point out which one is not correct regarding implied authority of the partner to act as agent of the firm.
(a) He has right to sell the goods or chattels of the firm.
(b) He has right to receive payment of debts due to the firm.
(c) He has right to make an equitable mortgage by depositing the title deeds belonging to the firm.
(d) He has right to acquire immovable property on behalf of the firm.

168. The authority of a partner to bind the firm by his acts done in the usual course of business is called his “implied authority”. Such authority does not include :
(a) Selling the firm’s goods.
(b) To borrow in a trading firm.
(c) Settling accounts with the persons dealing with the firm.
(d) Withdraw a suit or proceeding filed on the firm’s behalf.

169. On the death of a sole proprietor, his heirs automatically become the partners of old firm. The statement is
(a) True
(b) False
(c) Partly true
(d) None of the above

170. An act of a firm means:
a. Any partner or agent of the firm which gives rise to a right enforceable by or against the firm
b. Any act by all the partners
c. Any omission by all the partners
d. All of the above

171. Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Does it mean that losses are not shared:
a. A minor may be admitted in partnership, only for the profits, but he cannot share in losses.
b. It also depends on the partnership agreement. A person may share the profits but may not share in losses.
c. Sharing of profits also include losses(negative profits)
d. All of the above

172. 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 called as:
a. Particular partnership
b. Partnership for a fixed term
c. Partnership at will
d. None of the above

173. What information shall be given to the Registrar of Firms by a registered partnership firm:
a. New opening/closing of the existing branch, if any.
b. Change in the name of and address of the partner(s)/change in the constitution of the firm.
c. When there is change in the name of the firm or in location of the principal place of business.
d. All of the above

174. Who can inspect the Register and filed documents at the office of the Registrar:
a. Any Government servant
b. The partners of the firm
c. The partners of the other firms
d. Any person

175. What are the rights of partners after dissolution:
a. To have the surplus distributed among the partners or their representatives according to their rights.
b. To have business wound up after dissolution
c. To have the property of the firm applied in payment of the debts and liabilities of the firm.
d. All of the above

176. 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:
a. Nine per cent, per annum
b. Eighteen per cent, per annum
c. Six per cent per annum
d. Twelve per cent, per annum

177. The dissolution of partnership means:
a. It means the dissolution of partnership between all the partners of a firm
b. It means the change in the relations of the partners
c. It means the reconstitution of the firm
d. None of the above

178. In what circumstances a partner may retire:
a. In accordance with an express agreement by the partners
b. Where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire
c. With the consent of all the other partners
d. All of the above

179. What would be the position, where a minor elects not to become a partner:
a. He shall be entitled to sue the partners for his share of the property and profits.
b. His rights and liabilities shall continue to be those of a minor under this section up to the date on which he gives public notice.
c. His share shall not be liable for any acts of the firm done after the date of the notice.
d. All of the above

180. After a partner’s death the business is continued in the old firm name. Whether the legal heirs of the deceased partner are liable for any acts of the firm:
a. The continued use of the name or of the deceased partner’s name as a part thereof shall not of itself make his legal representative or his estate liable for any act of the firm done after his death.
b. If the estate of the deceased person’s property is insufficient to make good, the personal assets of the legal heirs will be liable for any of the acts done by the firm.
c. The estate of the deceased person is liable for any of the act done by the firm.
d. The legal heirs of the deceased partners shall be liable for any of the act done by the firm after the demise of the partner.

181. The partners in a firm may, by contract between the partners:
a. Restrict the implied authority of any partner
b. Extend the implied authority of any partner
c. None of the above
d. Both A and B are correct

182. Whether a notice given to a partner, who habitually acts in the business of the firm of any matter relating to the affairs of the firm, will be deemed as notice to the firm:
a. It will be deemed as personal information to that partner
b. Yes, it 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
c. It depends on the nature of the concerned partner whether he informs so to other partners
d. No, it will not be deemed as notice to the firm

183. What would be the position where a minor elects to become a partner:
a. His share in the property and profits of the firm shall be the share to which he was entitled as a minor
b. His rights and liabilities as a minor continue up to the date on which he becomes a partner
c. He also becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership
d. All of the above

184. When there is any change in the constitution of the firm, what would be the status of the continuing guarantee given to the firm:
a. It shall be revoked as to future transactions from the date of any change in the constitution of the firm.
b. Since it is the continuing guarantee, hence it will be continuing.
c. Only the parties to the continuing guarantee can decide over the matter.
d. None of the above

185. Where a partner 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 him. The other partner(s) may:
a. The partnership firm comes to an end automatically
b. The other partners may decide to leave the firm
c. File a suit in the court for the dissolution of the firm
d. The other partners may decide to expel the concerned partner

186. Who is not liable for the acts of the partners done after dissolution, if done before the dissolution, until public notice is given of the dissolution:
a. A partner who, not having been known to the person dealing with the firm to be a partner, retires from the firm(sleeping or dormant partner).
b. The estate of a partner who dies
c. A partner declared insolvent
d. All of the above

187. Where a partner has paid a premium on entering into partnership of a fixed term, and the firm is dissolved before the expiration of that term otherwise than by the death of a partner, whether any repayment of the premium is permissible:
a. He will not be entitled for repayment of the premium if the dissolution is mainly due to his own misconduct
b. He will not be entitled for repayment of the premium if the dissolution is in pursuance of an agreement containing no provision for the return of the premium or any part of it
c. 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
d. All of the above

188. Whether a partner after dissolution of the partnership firm, can carry on the business in the erstwhile business name of the firm:
a. He can use the business name of the dissolved firm name, if he has bought the goodwill of the firm.
b. He can’t use the business name of the dissolved firm.
c. He can use the business name of the dissolved firm, provided there was a contract between the partners of the dissolved firm.
d. Both the points mentioned at A and C are correct

189. The State Government may appoint Registrars of Firms for the purposes of this Act, every Registrar shall be deemed:
a. To be a Central Government Servant
b. To be a public servant within the meaning of section 21 of the Indian Penal Code
c. To be State Government Servant
d. To be a private servant

190. What is the penalty for submission of false particulars to the Registrar of Firms:
a. He shall be punishable with imprisonment which may extend to three months, or with fine, or with both
b. He shall be punishable with imprisonment which may extend to four months, or with fine, or with both
c. He shall be punishable with imprisonment which may extend to two months, or with fine, or with both
d. He shall be punishable with imprisonment which may extend to one month, or with fine, or with both

191. What matters require notice to Registrar of Firms under section 63, and Public Notice by publication in the Official Gazette and in at least one vernacular newspaper circulating in the district where the firm to which it relate, has its place or principal place of business
a. The dissolution of a registered firm
b. The election to become or not to become a partner in a registered firm by a person attaining majority who was admitted as a minor to the benefits of partnership
c. Retirement or expulsion of a partner from a registered firm
d. All of the above

192. What is the amount of fee which shall accompany with the documents sent to the Registrar of Firms, or which shall be payable for the inspection of documents in the custody of the Registrar of Firms, or for copies from the Register of Firms:
a. The fees prescribed by each of the State shall not exceed the maximum fees specified in Schedule I of the Indian Partnership Act, 1932
b. The State Government may by notification in the Official Gazette make rules describing the schedule of fees
c. Both A and B are correct
d. None of the above

193. Non-registration of a firm will not affect:
a. The right of the partner to sue for the dissolution of the firm, or for the accounts of the dissolved firm, or for share of the property of the dissolved firm
b. All of the following
c. The right to any suit or claim of set-off not exceeding Rs. 100 in value
d. The right of a firm or partners of a firm having no place of business in India

194. Where a partner 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 under the provisions of rule 49 of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 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.
a. The court may not dissolve the firm at the instance of any other partner(s)
b. The court may direct other partners to reconstitute the firm by excluding that concerned partner
c. The court may dissolve the firm at the instance of any other partner(s)
d. The court may expel the concerned partner, who has done wrong, from the partnership firm

195. How a firm may be dissolved
a. A firm may be dissolved by the Court order
b. A firm may be dissolved by the Court order
c. A firm may be dissolved in accordance with a contract between the partners
d. All of the above

196. On attaining the majority, the minor partner has to decide and give a public notice within the prescribed period, whether he will continue as partner in the firm or will quit. What is that prescribed period:
a. Within twelve months of his attaining majority or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later
b. Within three months of his attaining majority or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later
c. Within six months of his attaining majority or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later
d. Within nine months of his attaining majority or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later

197. In which conditions a person may be deemed as partner by estoppels or holding out:
a. When he by his conduct represents himself to be a partner in a firm
b. When knowingly permits himself to be represented, to be a partner in a firm
c. When he expressly by words spoken or written let the others that he is a partner in a firm
d. All of the above

198. M/s XYZ is partnership firm and X, Y and Z are the partners. During the course of business travel, partner X recovered a sum of Rs. 15000 in cash from the debtor of the firm and credit in his personal bank account. The act of X will amounts to
a. After utilising the amount for few days, he returned back the money to the firm, so it will not come under the mis-appropriation of the funds
b. Nothing wrong in it, since he has personally made efforts in realising the dues from the debtor
c. Mis-appropriating the funds of the firm and utilisation of the same for the personal gain
d. None of the above

199. What are the general duties of a partner
a. To render true accounts and full information of all things affecting the firm to any partner or his legal representative
b. To carry on the business of the firm to the greatest common advantage
c. To be just and faithful to each other
d. All of the above

200. A consideration is must for every contract. Partnership is also an agreement enforceable at law, hence it is also a contract to carry on the business for profit. Whether consideration, which is of essence for the formation of a contract, is essential for the formation of the partnership
a. Partnership is an extension of the law of agency hence no consideration is required
b. Yes, consideration is must for the formation of the partnership
c. There is no need to have consideration in formation of the partnership since no consideration is required to create an agency
d. Only A and C are correct

201. After the dissolution of a firm the authority of each partner to bind the firm, and the other mutual rights and obligations of the partners shall continue:
a. To complete transactions begun but unfinished at the time of the dissolution
b. To wind up the affair of the firm
c. Both A and B are correct
d. None of the above

202. What shall be the treatment of goodwill in settling the accounts of a firm after dissolution:
a. The assessment of the amount of goodwill is a difficult task and cannot be precisely calculated, hence it should not be considered
b. The goodwill shall, subject to contract between the partners, be included in the assets, and it may be sold either separately or along with other property of the firm
c. The goodwill is an intangible assets and should not be accounted for
d. None of the above

203. How the settlements of debts will be made in case there are joint debts due from the firm, and also separate debts due from any partner
a. Debts of the firm shall be paid first out of the property of the firm, but in case of private debts of the partners, it shall be paid in last(if there is residue) after paying of all the dues of the firm
b. Debts of the firm shall be paid first out of the property of the firm, but in case of private debts of the partners, it shall be paid in last(if there is residue) after paying of all the dues of the firm
c. Debts of the firm shall be paid first out of property of the firm and if there is any surplus, it shall be distributed among the partners
d. Both A and C are correct

204. Which is the implied authority of a partner:
a. To carry on the business of the firm, in the usual way
b. Compromise or relinquish any claim or portion of a claim by the firm
c. Submit a dispute relating to the business of the firm to arbitration
d. Open a banking account on behalf of the firm in his own name

205. Subject to contract between the partners, the property of the firm includes:
a. Acquired, by purchase or otherwise, by or for the firm, or for the purposes and in the course of business of the firm
b. The goodwill of the business
c. All property and rights and interests in property originally brought into the stock of the firm
d. All of the above

206. Where partnership deed is silent, which of the following statement is NOT correct:
a. The partners are entitled to share equally in the profits earned, and shall contribute equally to the losses sustained by the firm
b. 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 18% per annum
c. A partner is not entitled to receive remuneration for taking part in the conduct of the business
d. Where a partner is entitled to interest on the capital subscribed by him such interest shall be payable only out of profits

207. 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 entitle the transferee, during the continuance of the firm
a. To require accounts of the firm
b. To inspect the books of the firm
c. 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
d. To interfere in the conduct of the business of the firm

208. What is the liability of a retiring partner, after the date of his retirement
a. He shall not be liable for the act done by other partners during his tenure in the partnership firm
b. 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 public notice is given of the retirement
c. He shall be liable for the acts done by him only on behalf of the firm during his tenure, towards the third party
d. Only A and B are correct

209. 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 may not:
a. Solicit the custom of persons who were dealing with the firm before he ceased to be a partner
b. Use the firm name
c. Represent himself as carrying on the business of the firm
d. All of the above

210. The dissolution of firm means:
a. It means the dissolution of partnership between all the partners of a firm
b. It means the change in the relations of the partners
c. It means the reconstitution of the firm
d. Only B and C are correct

211. What are certain contingencies when the firm has to be dissolved(subject to contract):

a. By the death of a partner and by the adjudication of a partner as an insolvent

b. If constituted for a fixed term, by the expiry of that term

c. If constituted to carry out one or more adventures or undertakings, by the completion thereof

d. All of the above