Daily MCQs for Judiciary Prelims Exams - (25 December 2023)

Question/ Answer

Question1:- A partnership firm is

(a) A legal person
(b) Has a separate legal entity
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Answer is D is correct. In Munshi Ram v. Municipal Committee, Supreme Court held that a firm is not a legal persona neither it has a separate legal entity having an independent or distinct existence rom its partners. It is only a compendious description of individuals who compose the firm. Therefore option (d) is the correct answer.

Question2:- Which is not a difference between partnership and joint hindu family

(a) Concept of mutual agency exists in partnership and in joint hindu family
(b) Admission of new member in partnership is by contract and consent of all partners is required and admission of new member in HUF is by birth
(c) Liability of partners is joint, several and unlimited and in HUF there is no such limit
(d) Maximum limit of partners is 10 for banking and 20 for any other services and for HUF there is no such limit

Answer is A is correct. Concept of mutual agency only exists in partnership and not in HUF. All powers are vested in Karta, he is the only representative who can contract debts and other liabilities. Therefore option (a) is the correct answer.

Question3:- Partnership agreement between two persons for entering into certain wagering transactions for a particular season is

(a) Not a valid partnership
(b) A valid partnership
(c) Only a conditionally valid partnership
(d) All of the above

Answer is B is correct. In Gherulal Parekh v. Mahadeo Das, there was a partnership between two persons for entering into certain wagering transactions for a particular season only. It was held to be valid partnership. Therefore option (b) is the correct answer.

Question4:- As per Section 9 of Indian Partnership Act partners are bound

(a) To carry on the business of the firm to the greatest common advantage
(b) Duty to indemnify for fraud
(c) Duty of due diligence
(d) All of the above

Answer is A is correct. As per Section 9 of the Act, 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. Therefore option (a) is the correct answer.

Question5:- In case of any difference of opinion the ordinary matter of the partnership firm, it is to be settled through the

(a) Majority opinion of all the partners
(b) Consent of all the partners
(c) Consent of the board of members
(d) All of the above

Answer is A is correct. As per Section 12(c) any difference arising as to ordinary matters connected with the business may be decided by a majority of the partners, and every partner shall have the right to express his opinion before the matter is decided. Therefore option (a) is the correct answer.

Question6:- Consent of all the partners is a mandatory requirement under Section 12 of the Indian Partnership Act in the following cases

(a) Related to fundamental matters
(b) Ordinary matters
(c) Change in the nature of the business
(d) Both (a) and (c)

Answer is D is correct. As per Section 12 of the Act, consent of all the partners is required in fundamental matters and in change in the nature of business. Therefore option (d) is the correct answer.

Question7:- The firm shall indemnify a partner in respect of payments made and liabilities incurred by him in

(a) Ordinary and proper conduct of the business
(b) Emergency situation for the purpose of protecting the firm from loss
(c) Both (a) and (b)
(d) None of the above

Answer is C is correct. As per Section 13 (e) the firm shall indemnify a partner in respect of payments made And liabilities incurred by him (1) in ordinary and proper conduct of the business and (2) in doing such act, in an emergency, for the purpose of protecting the firm from loss. Therefore option (c) is the correct answer.

MCQ 25 December 2023

Daily MCQs for Judiciary Prelims Exams - (25 December 2023)

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