CA Foundation : Reconsitution & Dissolution of Firm Quiz

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Reconstitution and Dissolution of a Firm Quiz

1 / 16

A partner may not be expelled from the firm by any majority of partners unless:

2 / 16

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:

3 / 16

A notice in writing by one partner must be given to all the partners of the firm in case of:

4 / 16

A retired partner may be liable:

5 / 16

A partner can be expelled from a firm:

6 / 16

Retiring partner continues to remain liable to third parties for acts of the firm:

7 / 16

The partners authority to act for the firm and to bind their co-partners continues even after the dissolution of the firm:

8 / 16

A firm is compulsorily dissolved __________.

9 / 16

Dissolution of partnership between all the partners of a firm is called __________.

10 / 16

If all partners, or all but one partner, of the firm are declared insolvent __________.

11 / 16

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 __________.

12 / 16

No public notice is required:

13 / 16

Which of the following conditions is not necessary for expulsion of a partner?

14 / 16

Public Notice under the Partnership Act, is given in the following manner:

15 / 16

While selling goodwill of the firm, 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 :

16 / 16

The accounting rule in respect of loss arising due to insolvency of a partner is dealt within __________.

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Reconstitution and Dissolution of a Firm T/F

1 / 17

All partners are not the joint owners of the property of the firm, unless otherwise provided in the agreement.

2 / 17

A partner who has purchased the goodwill of the firm on dissolution of partnership has a right to make use of the firm’s name for earning profits.

3 / 17

A firm signifies the abstract legal relation of the partners.

4 / 17

A firm can be held liable for all wrongful acts of a partner done in the ordinary course of partnership business.

5 / 17

Permanent incapacity of a partner is not a ground for dissolution of partnership firm.

6 / 17

Legal representatives are required to give public notice so as to avoid the liability of the deceased partner.

7 / 17

The test of existence of partnership is the element of sharing of profits rather than mutual agency.

8 / 17

Losses including deficiencies of capital shall be first paid out of capital.

9 / 17

Losses including deficiencies of capital are to be paid by the partners in the portion in which they were entitled to share the profits.

10 / 17

Public notice is not necessary on a minor admitted to the benefits of partnership opting to become a partner in the firm.

11 / 17

Partnership will get dissolved if all the partnership except one are declared insolvent.

12 / 17

Dissolution of firm automatically results in dissolution of partnership.

13 / 17

When a partner of a firm becomes lunatic, the firm dissolves automatically.

14 / 17

The assignee of a partner’s interest, will enjoy the right to receive the share of the profits of the assignor and receive the accounts of profits agreed to by other partners.

15 / 17

Indian Partnership act imposes penalty for non-registration of the firm.

16 / 17

The term dissolution of partnership and dissolution of firm are synonymous.

17 / 17

In settling the accounts of a firm after dissolution, the assets are first utilized in paying the debts of the firm to the third parties.

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