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PAPER 3: FUNDAMENTALS OF LAWS AND ETHICS 50_MCQ Part 16

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Question;1.;Apartnermaynotbeexpelledfrom thefirmbyanymajority;ofpartnersunless;(a);Thetermsofpartnershipagreementconferthepowertoexpelapartner;(b);Theexpulsionismadebya majority;ofthepartnersofthefirm;(c);Thedecision ofexpulsion;ismadebyallthepartnersingoodfaith;(d);All theabove;2.;Unlessthereisa contract;to thecontrary;afirmisautomaticallydissolvedon;(a);Theexpiryoffixedterm;(b);Deathofapartner;(c);Insolvencyofapartner;(d);Alloftheabove;3.;Under Section 36 ofthis;Actan outgoingpartner maycarryon;business competingwiththatofthefirm and he;may advertisesuchbusiness;but,subjectto;contracttothecontrary hemaynot;(a);Usethefirmname;(b);Representhimselfasthepartnerofthefirm;(c);Solicitthecustomers;whoweredealingwiththefirmbeforeheceasedtobeapartner;(d);Alloftheabove;4.;Agreementinrestraintoftradeisvoid.Butifanoutgoing;partneragreeswiththefirmthathewillnotcarry onany;competingbusiness,suchanagreementwillbevalid;if;(a);Suchrestraintisinrespectofcarryingofanybusiness;similartothatofthefirm;(b);Suchagreementismadebythepartnersbeforehandi.e.wellinadvance;(c);Suchagreementismadewithout anyspecificreferencetotimeperiod.;(d);Suchagreementismadewithoutreferencetolocallimits;5.;Anoticeinwriting by one partnermustbegiventoallthe partners;of thefirm incaseof;(a);Dissolutiononthehappening;ofcontingencies;(b);Dissolutionofpartnershipatwill;(c);Dissolutionbycourt;(d);Compulsorydissolution;6.;Thefollowingisagroundfordissolutionofpartnershipby theCourt;(a);Insanityofapartner;(b);Incapacityofapartner;toperformhisdutyasapartner;(c);Wilfulmisconductbyapartnerlikely;to affectprejudiciallythecarryingonofthebusiness;(d);All theabove;7.;Afirmiscompulsorilydissolved;(a);Byadjudicationofanypartner;ofthefirmasinsolvent;(b);Bythedeathofapartner;(c) Byadjudication ofallthepartnersorofallthepartners;butoneisinsolvent;(d);Inanyoftheabovecircumstances;8.;Insettling theaccountofthefirmafterdissolution,theassetsofafirmaretobeappliedinpaying;(a);Jointdebtstothirdparties;(b);Advancesofeachpartner;(c);Toeachpartnerwhatisduefromthefirminrespectofcapital;(d);Alloftheabove;9.;Thepartnersauthoritytoactforthefirmandtobindtheirco-partnerscontinuesevenafterthedissolutionofthefirm;(a);Towinduptheaffairs;ofthefirm;(b);Tocompletetheunfinishedtransactions;(c);Bothofabove;(d);Noneoftheabove;10.;Apublicnotice;under thePartnership;Actisgivenaccording tosection72inthefollowingcases;(a);Admissionofnewpartner;(b);Retirementorexpulsionofapartner;(c);Minorattainingmajority;(d);All theabove;11.;Thedissolutionofapartnershipfirmdoesnottake;place;(a);Byoperationoflawonthehappening;ofcertainevents;(b);Inaccordancewiththepartnershipdeed;(c);Bymutualagreementofallthepartners;(d) Onthedeathofapartner;ifthepartnershipdeedprovidesthatdeathofthepartner;shallnotdissolve;thefirm;12.;Whichofthefollowingisnotamodeofretirementofpartner?;(a);Retirementwithotherpartners'consent;(b);Retirementinaccordancewithanexpress;agreement;(c);Incaseofapartnershipatwillbygivingwrittennoticeofhisintentiontoretire;(d);Retirementonattainingtheageofsuperannuation;13.;Incaseofpartnershipatwill,a retiringpartner;hastogivea;written notice?;(a);Toallthepartners;(b);Toalltheactivepartners;(c);Tothefirm;(d);TotheRegistrarofFirms;14.;Retiringpartnercontinuestoremainliableto;third partiesforactsofthefirm:?;(a);Untilpublicnoticeisgivenoftheretirement.;(b);Fromthedateofretirement;(c);Uptothecloseofthefinancial;yearinwhichheretires.;(d);Solongasthefirmuseshisname;15.;Toavoidliabilitytothirdparties,publicnoticeofretirementshouldbegiven.Suchpublicnoticemustbegiven?;(a);Byretiredpartneronly;(b);Byanypartnerofthereconstitutedfirm;(c);Either (a)or(b);(d);Neither (a)nor(b);16.;Apartnercanbeexpelled froma firm;(a);Ifpowertoexpelisconferredbyexpress;agreement.;(b);Ifthepowerisexercisedingoodfaith.;(c);Bymajorityofpartners;aftergivingopportunityofexplanation.;(d);Alloftheabove;17.;Aretiredpartnermaybeliable;(a);Fordebtsincurredbeforeretirement.;(b) Fordebtsincurredafterretirementuntilpublic;noticeisgiven.;(c);Either;(a)or(b);(d);Both(a)and(b);18.;Whichofthefollowingconditionsisnotnecessary;forexpulsionofa partner?;(a);Thepowerofexpulsion;mustbegiveninthepartnershipdeed.;(b);Suchpowerhasbeenexercisedbyamajorityofthepartners.;(c) Suchpowerhasbeenexercisedingoodfaithfortheinterest;ofthefirmandnotusedasvengeance;againstapartner;(d);AnFIRhasbeenfiledinthePoliceStation;19.;Unlessthereisa contract;to the contrary,theeffect;insolvency ofa partneristhat;(a);Thefirmisdissolved;(b);Thefirmisnotautomaticallydissolved;(c);Thefirmisalsodeemed;insolvent;(d);Thefirmisreconstituted;20.;Nopublicnoticeisrequired;(a);Onthedeathofapartner;(b);Onminorattainingmajority;(c);Retirementofpartner;(d);Dissolutionoffirm;21.;Anoutgoingpartnercancarryonacompeting;businessandalsoadvertisesuchbusiness.;Forthispurpose;intheabsenceofcontract;tothe contrary?;(a);Hecanusethefirm's;name;(b);Hecannotusethefirm'sname;(c);Hecannotrepresenthimselfascarryingonthebusinessofthefirm.;(d);Both (b)and(c);22.;Aspersection38whenconstitutionofthefirmischanged,thecontinuingguaranteegiventothefirmortoa;thirdpartyinrespect;tothetransactionsofthefirm;(a);Isnotaffectedatall;(b);Isrevokedastofuture;transactions;(c);Isrevokedwithretrospectiveeffect;(d);Ceasestobecontinuingguarantee;23.;Dissolutionofpartnershipbetween;allthepartners;ofafirmis;called;(a);Dissolutionofpartnership;(b);Dissolutionofpartners;(c);Dissolutionofthefirm;(d);Reconstitutionoffirm;24.;Ifallpartners;orallbutonepartner,ofthefirmaredeclaredinsolvent;(a);Firmisautomaticallydissolved;(b);Firmbecomesillegalassociation;(c);Firmisalsodeclared;insolvent;(d);Firmbecomesillegalentity;25.;Afirmiscompulsorily;dissolvedonthe;(a);Deathofapartner;(b);Adjudicationofapartner;asaninsolvent;(c);Expiryofafixedperiodforwhichthefirmwasconstituted;(d);Businessofthefirmbecomingillegalduetohappeningofanevent;26.;Ifanyeventhappenswhichmakesitunlawful;forthebusiness;ofthefirmtobecarriedonorforthepartners tocarry itonitpartnership, then;(a);Firmiscompulsorilydissolved;(b);Partnershipisreconstituted;(c);Firmbecomesanillegalassociation;(d);Firmisdeclaredinsolvent;27.;Unlessagreedotherwise,a firm;isdissolvedby thedeathofa;partner.;(a);True;(b);False;(c);PartlyTrue;(d);Noneoftheabove;28.;Apartnership may bedissolved;byanypartner by givinga noticetoother;partnersincaseof;(a);Partnershipatwill;(b);Partnershipforafixedduration;(c);Particularpartnership;(d);Limitedliabilitypartnership;29.;Whichofthefollowingdonotconstituteaground-fordissolutionby Court?;(a);Misconductbypartner;(b);Transferofinterestbypartner;(c);Justandequitablegrounds;(d);Insolvencyofapartner;30.;Upondissolutionoffirm,losses;includingdeficienciesofcapital,shallbepaidfirst;(a);OutofProfits;(b);Outof Capital;(c);Bythepartnersintheirprofitsharingratio;(d);Bythepartnersequally;31.;Upondissolutionoffirm,losses,includingdeficienciesofCapital,shallbepaidfirstoutofProfitsand then outof;Capitalandfinally;?;(a);OutofProfits;(b);Outof Capital;(c);Bythepartnersindividuallyintheir;profitsharingratio;(d);Bythepartnersequally;32. Insettlingtheaccount;after dissolution,thefirm's;assetsshallbefirstappliedin;(a);PaymentofDebtsofthefirmtothirdparties;(b);Paymentofpartner'sLoan;(c);Paymentofpartner'sCapital;(d);DistributiontopartnersintheirProfitSharing;Ratio;33.;Upondissolution,thefirm'sassetsaftersettlementofthedebtsofthefirmtothirdpartiesandpartners' Loans, shall then beapplied;in?;(a);Paymentofdebtsofthefirm;(b);Advancesofeachpartner;(c);Paymentofpartner'scapital;(d);DistributiontopartnersintheirProfitSharing;Ratio;34.;Whereapartnershipcontractisrescinded;ongroundsoffraudormisrepresentation,thepartyentitled;torescind,isalsoentitled;torank,inrespectofanypaymentmadebyhimforthefirm'sdebtsasa;(a);Creditor;(b);Debtor;(c);Lender;(d);Guarantor;35.;Afterafirmisdissolved;everypartnerorhisrepresentativemayrestrain;anyotherpartner;orhisrepresentativefromcarryingonsimilarbusinessinthefirm'snameorbyusingfirm'sproperty;forownbenefit;until;(a);Theaffairsofthefirmarecompletelywoundup;(b);Dissolutionofthefirm;(c);Dateofpublicnoticeofdissolution;(d);Dateofsigningofdissolutiondeed;36.;Insettlingtheaccountsofafirmafterdissolution,thegoodwill;ofthefirm;(a);Mustbeincludedintheassets;(b) Maybe sold;separately;(c);Maybesoldalong;withtheassets;ofthefirm;(d);Alloftheabove;37.;Whengoodwillofthefirmissoldupondissolution,andapartnercarriesonacompetingbusiness,whichofthefollowingispermissible?;(a);Useoffirm'sname;(b);Holdingoutascarryingonthebusinessofthefirm.;(c);Solicitingthecustomofthefirm'scustomers/suppliersetc.;(d);Noneoftheabove;38.;Publicnoticeincase ofa;firmisnotrequired incaseof;(a);Admissionofapartner;(b);Retirementofapartner;(c);Expulsionofapartner;(d);Dissolutionofthefirm;39.;Publicnoticeisrequired;to;begiveninthecase;(a);admissionofminor;(b);exercisingoptiontocontinueornot,onattainmentofmajority;bytheminor;(c);deathofapartner;(d);retirementbysleepingpartner;40.;When goodwill ofthe;firm,the sellingpartners;mayagreewiththebuyer thattheywill not;carryonsimilarbusiness,withinaspecified;periodorwithinspecifiedlocallimits.;Suchagreementinrestraint;oftradeshallbe;(a);Valid,iftherestrictionsimposedarereasonable;(b);Valid(whetherrestrictionsarereasonableornot);(c);Void;(d);Voidable;41.;PublicNoticeunderthePartnership Act,is;giveninthefollowingmanner;(a);ServingacopyoftheNotice;totheRegistrarof;firms;(b);PublishingtheNoticeintheOfficial;Gazette;(c) PublishingtheNoticeinonevernacularnewspapercirculatinginthedistrictwherethefirm'sprincipalplace ofbusinessissituated;(d);Alloftheabove;42.;Identifytheincorrectstatements;(1);Whenafirmisconstitutedforafixedduration;itcannotbedissolvedbeforetheexpiryofthatduration.;(2) Apartnershipatwillcanbedissolvedby thewishofevenasingle;partner.;(3);Whena partner;ofa firm becomeslunatic,thefirmdissolvesautomatically.;(4);Evenafterdissolution,partnersofafirmcontinuetobeliableforactsofthefirmuntiltheaffairsofthefirmarefinally;woundup.;Code;(a);1,2and3;(b);1,3and4;(c);1,2and4;(d);2,3 and4;43.;A, BandCarepartners;of;an unregisteredfirm. Downs this;firm`1000on acontract.;The firmfileda suitagainstDthe suit;is dismissedfor non-registrationof;the firm. The firmis registeredlater on. InthiscasewhichoneofthefollowingstatementsisMOSTappropriate.;(a);Thefirmcansuccessfully bringthesuitagainstD;(b);Registrationmusthavebeeneffectedbythefirm,beforeasuitisfiledinthecourt;(c);Thefirmcannot;filesuitagainst;D;(d);Noneoftheabove;44.;X, YandZ are partners;in a firm. X,withouttheauthorityofYandZbuyscertain;sharesin hisnameoutofpartnership money.Will'shares' constitutepartnership property?;(a);Yes;(b) No;(c);Can'tsay;(d);Dependsonthefactsofthecase;45.;A, BandCare;partners.Cisasleepingpartner;whoisnot knowntothecreditors.Cretires;withoutgivingpublicnoticeofhisretirement.IsCliable;forsubsequentdebtsincurredbyAandB.;(a);No,sinceheisasleepingpartner;(b);Yes,sincepublicnotice;ofretirement mustbegiven;(c);Difficulttosay;(d);Noneoftheabove;46.;TheNegotiableInstrumentsAct,1881applies;to;(a);thewholeofIndia;(b);thewholeofIndiaexcepttheStateof JammuandKashmir;(c);thosestatesasnotifiedbytheUnionGovernmentfromtimetotimeintheOfficial;Gazette;(d);thewholeofIndiaexcepttheStateofJammuandKashmir;andtheNorth-;EasternStates;47.;TheNegotiableInstrumentsAct,1881cameintoforceon;(a);9thDecember,1881;(b);19thDecember,1881;(c);1stMarch,1882;(d);noneoftheabove;48.;Theundertaking contained ina;promissorynote,topaya;certainsum ofmoneyis;(a);Conditional;(b);Unconditional;(c);maybeconditionalorunconditionaldependinguponthecircumstances;(d);noneoftheabove;49.;Abillofexchange;containsa/an;(a);unconditionalundertaking;(b);unconditionalorder;(c);conditionalundertaking;(d);conditionalorder;50.;Chequeisa;(a);promissorynote;(b);billofexchange;(c);both (a)and(b)above;(d);Noneoftheabove

 

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