MCQ 28 December 2023

Daily MCQs for Judiciary Prelims Exams - (28 December 2023)



Question/ Answer
Question1:- Which is the conditions which is not required to be followed in order to invoke Section 28 of Indian Partnership Act
  • (a) Representation
  • (b) Having no knowledge
  • (c) Acted on such representation
  • (d) Having knowledge
Answer is B is correct. For a valid application of holding out principle under Section 28 of the Act, there must be a representation, person had the knowledge and he acted upon such representation. Therefore option (b) is the correct answer.
Question2:- If after partner’s death, the business is continued in the old firm’s name, the continued use of the name of the deceased partner
  • (a) Will make his representative liable for the acts of the firm
  • (b) Will not make his representative liable but only his shares liable for the acts of the firm
  • (c) Will not change the position and same continues as it was prior to the death of the partner
  • (d) Will not make the representative liable for the acts of the firm
Answer is D is correct. As per Section 28(2) of the act representative of the deceased partner will not itself be liable for the act of the firm even if firm continues to use the same firm name. Therefore option (d) is the correct answer.
Question3:- Which is the famous case on position in case of retirement of partners
  • (a) Scarf v. Jardine
  • (b) CIT v. Dwarkadas Khetan & Co.
  • (c) Dean v. MacDowell
  • (d) B.M. Deviah v. Canara Bank
Answer is A is correct. Scarf v. Jardine is a famous and landmark case of retirement of partners. Wherein court held the person must make the election of suing the partner, new or old and election once made is final and binding. Therefore option (a) is the correct answer.
Question4:- Which section deals with minor as a partner in the firm
  • (a) Section 28
  • (b) Section 40
  • (c) Section 30
  • (d) Section 20
Answer is C is correct. Section 30 of the Act provides that a person who is a minor cannot be a partner in a firm but with the consent of all the partners can be admitted to the benefits of partnership. Therefore option (c) is the correct answer.
Question5:- A minor can be admitted into the benefits of partnership
  • (a) With consent of majority partners
  • (b) With the consent of all the partners
  • (c) Only with the agreement between the partner and guardian of minor
  • (d) With the consent of partners who are 40 years and above
Answer is B is correct. As per Section 30 of the Act provides that a person who is a minor cannot be a partner in a firm but with the consent of all the partners can be admitted to the benefits of partnership. Therefore option (b) is the correct answer.
Question6:- Which of the following is a not a right or liability of the minor who has been admitted into the benefits of partnership
  • (a) Right to receive profits
  • (b) Inspect the accounts
  • (c) Personal liability
  • (d) All of the above are correct
Answer is C is correct. Minor has a right to receive profits and inspect and access the copy of any of the accounts of the firm but he cannot be made personally liable for the acts of the firm though his shares can be made liable. Therefore option (c) is the correct answer.
Question7:- Within how much time, a minor has to decide whether he wants to remain in the firm or leave it
  • (a) Within 1 year from attaining majority
  • (b) Within 3 months from attaining majority
  • (c) Within 9 months from attaining majority
  • (d) Within 6 months from attaining majority
Answer is D is correct. As per Section 30 on attaining majority a minor has to decide within six months whether he shall remain in the firm or leave it. Six months are counted from the date of his majority or from the date when he first comes to know that he has been admitted into the benefits of partnership. Therefore option (d) is the correct answer.

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