Partnership Act - Part 2

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Partnership Act - Part 2 - Quiz


Questions on :
1)Introduction and Procedure for Registration.
2)Change of Particulars after Registration of a Firm.
3)Effects or Disabilities of Non-Registration of a Firm.
__________________________________________________No. Of Questions to be Answered : Random 20 out of 38


Questions and Answers
  • 1. 

    Registration of partnership firm with the Registrar of Firms, is   _________ 

    • A.

      Compulsory

    • B.

      Optional

    • C.

      Required under Section 54

    • D.

      Required under Section 55.

    Correct Answer
    B. Optional
    Explanation
    The registration of a partnership firm with the Registrar of Firms is optional. While it is not mandatory to register a partnership firm, it is advisable to do so in order to avail certain benefits and legal protections. Registration provides legal recognition to the partnership, allows partners to sue or be sued in the name of the firm, and enables the firm to claim set-offs or counterclaims in legal proceedings. However, the absence of registration does not invalidate the existence of a partnership or the rights and obligations of the partners.

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  • 2. 

    For non-registration of the firm, the Indian Partnership Act 1932

    • A.

      Imposes penalty on firm.

    • B.

      Imposes penalty on partners.

    • C.

      Imposes penalty on both.

    • D.

      Provides for certain disabilities only.

    Correct Answer
    D. Provides for certain disabilities only.
    Explanation
    The Indian Partnership Act 1932 provides for certain disabilities only in case of non-registration of the firm. This means that if a firm is not registered, it may face certain limitations or restrictions in terms of legal rights and privileges. However, it does not impose penalties on the firm or the partners directly.

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  • 3. 

    Though the registration of a firm is optional, yet indirectly it becomes necessary due to the reason that

    • A.

      A firm legally comes into existence only on registration.

    • B.

      A film can deal with third parties only on registration.

    • C.

      The disabilities due to non-registration are removed only on registration.

    • D.

      Both (a) and (b).

    Correct Answer
    C. The disabilities due to non-registration are removed only on registration.
    Explanation
    The correct answer is that the disabilities due to non-registration are removed only on registration. This means that if a firm chooses not to register, it will face certain limitations and disadvantages. These disabilities may include the inability to enter into legal contracts, limited access to banking facilities, and the inability to sue or be sued in a court of law. By registering the firm, these disabilities are removed, allowing the firm to operate more effectively and legally.

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  • 4. 

    The legal provisions relating to registration of firms are provided in

    • A.

      Section 56 to 71

    • B.

      Section 50 to 55

    • C.

      Section 72

    • D.

      None of these.

    Correct Answer
    A. Section 56 to 71
    Explanation
    The correct answer is Section 56 to 71. These sections contain the legal provisions relating to the registration of firms. They outline the procedures and requirements for registering a firm, including the necessary documents, forms, and fees. These sections also specify the consequences of non-compliance with the registration requirements and provide for the cancellation or alteration of registered firms. Overall, Section 56 to 71 comprehensively cover the legal framework for the registration of firms.

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  • 5. 

    The registration of a firm is effected by filing a prescribed application along with the prescribed fee with the    __________.

    • A.

      Registrar of companies

    • B.

      Registrar of firms

    • C.

      Registrar of conveyances

    • D.

      Competent court.

    Correct Answer
    B. Registrar of firms
    Explanation
    The correct answer is Registrar of firms. The registration of a firm is done by filing a prescribed application along with the prescribed fee with the Registrar of firms. This is the authority responsible for maintaining the register of firms and ensuring compliance with the relevant laws and regulations. The Registrar of firms plays a crucial role in the process of registering a firm and is the appropriate authority to receive the application and fee for registration.

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  • 6. 

    The prescribed application form for registration of the firm should be deposited with the Registrar of Firms of that area.

    • A.

      Which is convenient for partners.

    • B.

      In which the working partner of the firm resides.

    • C.

      In which any place of business of firm is situated or proposed to be situated.

    • D.

      Which is agreed by all the partners for the purposes of registration.

    Correct Answer
    C. In which any place of business of firm is situated or proposed to be situated.
    Explanation
    The correct answer is "In which any place of business of the firm is situated or proposed to be situated." This is because the application form for registration of the firm should be deposited with the Registrar of Firms of the area where the firm's place of business is located or will be located in the future. This ensures that the registration process is carried out in the appropriate jurisdiction and that the firm is complying with the necessary legal requirements.

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  • 7. 

    A partnership firm may be got registered 

    • A.

      At the time of its formation.

    • B.

      At any time after formation.

    • C.

      Either (a) or (b).

    • D.

      None of these.

    Correct Answer
    C. Either (a) or (b).
    Explanation
    A partnership firm may be registered either at the time of its formation or at any time after its formation. This means that partners have the option to register the firm immediately upon its establishment or they can choose to register it later on. Both options are valid and acceptable under the law.

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  • 8. 

    Which of the following statement, about the registration of a firm, is incorrect ?

    • A.

      It may be effected before filing a suit against third party.

    • B.

      It may be effected at any time after its formation.

    • C.

      It may be effected at the time of its formation

    • D.

      It must be effected at the time of its formation.

    Correct Answer
    D. It must be effected at the time of its formation.
    Explanation
    The correct answer is "It must be effected at the time of its formation." This statement is incorrect because the registration of a firm can be done at any time after its formation. It is not mandatory for the registration to be done immediately at the time of formation.

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  • 9. 

    The application form for registration of firm should state the

    • A.

      Name of firm and its place of business.

    • B.

      Name and address of partners and date of joining the firm.

    • C.

      Duration of the firm.

    • D.

      All of these.

    Correct Answer
    D. All of these.
    Explanation
    The application form for registration of a firm should include all of the mentioned details. The name of the firm and its place of business is important for identification and location purposes. The name and address of partners, along with the date of joining the firm, helps in establishing the ownership and responsibilities within the firm. The duration of the firm is also necessary to determine the validity and legal status of the registration. Therefore, all of these details should be included in the application form.

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  • 10. 

    The application form for registration should be signed by

    • A.

      All the partners or their authorised agents.

    • B.

      The active partners only.

    • C.

      Minimum two partners even if there are more then two.

    • D.

      The managing partner only.

    Correct Answer
    A. All the partners or their authorised agents.
    Explanation
    The correct answer is "All the partners or their authorized agents." This means that when filling out the application form for registration, it is necessary for all the partners to sign it or for their authorized agents to sign on their behalf. This ensures that all partners are involved and have given their consent for the registration process. It also allows for transparency and accountability within the partnership.

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  • 11. 

    As per the accepted view, the registration of the firm is considered complete when

    • A.

      Complete application for registration is filed with the Registrar.

    • B.

      Registrar files the statement and makes entries in the register' of firms'.

    • C.

      Registrar gives notice of registration to all die partners.

    • D.

      Court records the statement and certifies the entries in the'register of firms'.

    Correct Answer
    B. Registrar files the statement and makes entries in the register' of firms'.
    Explanation
    The correct answer is "Registrar files the statement and makes entries in the register' of firms'." This is because the registration of a firm is considered complete when the registrar receives the complete application for registration, files the statement, and makes entries in the register of firms. This step ensures that the firm's information is officially recorded and recognized by the registrar. The other options mentioned in the question are important steps in the registration process, but they do not signify the completion of the registration.

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  • 12. 

    On any partner's refusal to sign the application form for registration, the registration of the firm.

    • A.

      Can be obtained by dropping the name of such partner form the firm.

    • B.

      Can be obtained without dropping the name of such partner.

    • C.

      Cannot be obtained with such a form which is not signed by all the partners

    • D.

      Both (a) and (c).

    Correct Answer
    A. Can be obtained by dropping the name of such partner form the firm.
    Explanation
    If a partner refuses to sign the application form for registration, the firm can still obtain registration by dropping the name of that partner from the firm. This means that the partner who refuses to sign will no longer be a part of the registered firm. The registration can be obtained without the need for the signature of all the partners, as long as the partner who refuses to sign is removed from the firm. Therefore, the correct answer is "Can be obtained by dropping the name of such partner from the firm."

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  • 13. 

    After the registration of a firm, a change in the firm name requires almost a new registration.

    • A.

      True, as all the formalities required for registration are to be complied.

    • B.

      False, as in this case only an information to the registrar about the change is sufficient.

    Correct Answer
    B. False, as in this case only an information to the registrar about the change is sufficient.
    Explanation
    After the registration of a firm, a change in the firm name does not require a new registration because the necessary formalities have already been completed during the initial registration process. Instead, the firm only needs to inform the registrar about the name change, which is sufficient to update the records.

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  • 14. 

    After the registration of a firm, a change in the principal place of business of the firm requires

    • A.

      A simple information to the registrar.

    • B.

      A simple information to the court.

    • C.

      An affidavit of a managing partner about the change.

    • D.

      Almost anew registration.

    Correct Answer
    A. A simple information to the registrar.
    Explanation
    After the registration of a firm, a change in the principal place of business of the firm can be done by simply providing information to the registrar. This means that there is no need to involve the court or submit an affidavit from a managing partner. The registrar should be notified about the change in the principal place of business, and they will update the firm's records accordingly. This process does not require a complete re-registration of the firm.

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  • 15. 

    After the registration of a firm, for closing of an old branch and opening of a new branch, only an information is required to be given to the Registrar.

    • A.

      True, as it is the requirement of law.

    • B.

      False, at it also requires almost a new registration.

    • C.

      An agent-of the firm.

    • D.

      Either (b) or (c).

    Correct Answer
    D. Either (b) or (c).
    Explanation
    The statement suggests that after the registration of a firm, if they want to close an old branch and open a new branch, they only need to inform the Registrar. The correct answer is "Either (b) or (c)" because it implies that the statement is false. It means that closing an old branch and opening a new branch requires either a new registration or the involvement of an agent of the firm.

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  • 16. 

    After the registration of a firm, a change in the name or permanent address of any partner requires almost anew registration.

    • A.

      True, as it is the requirement of law.

    • B.

      False, as in this case only an information, to the registrar, is required to be given.

    Correct Answer
    B. False, as in this case only an information, to the registrar, is required to be given.
    Explanation
    After the registration of a firm, a change in the name or permanent address of any partner does not require a new registration. Instead, the firm only needs to inform the registrar about the change. This is because the requirement of law is to provide the information to the registrar, rather than going through the entire registration process again. Therefore, the statement "False, as in this case only an information, to the registrar, is required to be given" is the correct answer.

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  • 17. 

    An information to the Registrar about a change in the name or permanent address of any partner, after registration, is required to be given by

    • A.

      Concerned partner only.

    • B.

      All partners jointly.

    • C.

      Any partner or agent of firm

    • D.

      None of these.

    Correct Answer
    C. Any partner or agent of firm
    Explanation
    Any partner or agent of the firm is required to inform the Registrar about a change in the name or permanent address of any partner after registration. This means that the responsibility to provide this information lies with any partner or the agent of the firm, rather than just one specific partner or all partners jointly.

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  • 18. 

    Where a new partner joins the firm after its registration, such a change in the constitution of the firm, requires

    • A.

      Almost a new registration.

    • B.

      A notice, along with date of joining to the Registrar.

    • C.

      A simple information to the court.

    • D.

      None of these.

    Correct Answer
    B. A notice, along with date of joining to the Registrar.
    Explanation
    When a new partner joins a firm after its registration, a change in the firm's constitution occurs. In order to inform the relevant authorities about this change, a notice must be submitted to the Registrar. This notice should include the date of the new partner's joining. This requirement ensures that the Registrar is aware of the updated composition of the firm and can maintain accurate records. The other options, such as a new registration or a simple information to the court, are not necessary in this situation.

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  • 19. 

    Where an existing partner retires form the firm after its registration, such a change in the constitution of the firm, requires

    • A.

      Almost a new registration.

    • B.

      A notice along with date of retirement, to the Registrar.

    • C.

      An indemnity bond form a retiring partner.

    • D.

      None of these.

    Correct Answer
    B. A notice along with date of retirement, to the Registrar.
    Explanation
    When an existing partner retires from a firm after its registration, it is necessary to inform the Registrar about this change in the constitution of the firm. This can be done by submitting a notice to the Registrar along with the date of retirement. This is important for the Registrar to update the firm's records and ensure legal compliance. It is not necessary to go through a new registration process or obtain an indemnity bond from the retiring partner in this situation.

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  • 20. 

    A notice to the Registrar about the admission or retirement of a partner, after registration, is required to be given by

    • A.

      All partners jointly.

    • B.

      Any continuing partner.

    • C.

      New or retiring partner.

    • D.

      Either (b) or (c).

    Correct Answer
    D. Either (b) or (c).
    Explanation
    After a partner has been registered, it is necessary to inform the Registrar about any admission or retirement of a partner. This notice can be given by either any continuing partner or a new or retiring partner. In other words, any partner who is still involved in the partnership can be responsible for notifying the Registrar about changes in the partnership.

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  • 21. 

    The notice of dissolution of a registered form is required to be sent to the Registrar of Firms by any person who was a partner immediately before dissolution.

    • A.

      True, it is the requirement of law [Section 63(1)]

    • B.

      False, as there is no such provision in the Indian Partnership Act, 1932.

    Correct Answer
    A. True, it is the requirement of law [Section 63(1)]
    Explanation
    The given answer is true because according to Section 63(1) of the Indian Partnership Act, 1932, any person who was a partner immediately before the dissolution of a registered firm is required to send a notice of dissolution to the Registrar of Firms. This is a legal requirement and failure to comply with it may result in penalties or legal consequences.

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  • 22. 

    The registration of a firm is optional, but indirectly the Indian Partnership Act, 1932 has effectively ensured the registration of firms without making it compulsory.

    • A.

      True, as an unregistered firm certain disabilities.

    • B.

      False, as the disabilities are of least importance.

    Correct Answer
    A. True, as an unregistered firm certain disabilities.
    Explanation
    The given answer is true because even though the registration of a firm is optional according to the Indian Partnership Act, 1932, there are certain disabilities that unregistered firms face. These disabilities may include the inability to file a suit against third parties or other partners, the inability to claim set-off or counter-claim in a legal proceeding, and the inability to enforce rights against third parties. Therefore, while registration is not compulsory, the act indirectly ensures that firms register to avoid these disabilities.

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  • 23. 

    For the enforcement of any right arising form a contract or conferred by the Indian Partnership Act, a partner of an unregistered firm cannot file a suit against the

    • A.

      Firm

    • B.

      Present partners

    • C.

      Past partners

    • D.

      All of these

    Correct Answer
    D. All of these
    Explanation
    In accordance with the Indian Partnership Act, a partner of an unregistered firm is not entitled to file a suit against the firm, whether it is against the present partners or the past partners. This is because the act requires a firm to be registered in order to enforce any rights arising from a contract or conferred by the act. Therefore, the partner of an unregistered firm is unable to take legal action against any parties involved in the firm, whether they are current or former partners.

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  • 24. 

    A partner can file a suit for the enforcement of his rights, arising form a contract, against the firm or his present or past partners if the

    • A.

      Firm is registered.

    • B.

      Name of such partner appears as a partner in the register of firms.

    • C.

      Both (a) and (b) as it is the requirement of law.

    • D.

      None of these, as a partner can never file a suit against the firm or partners.

    Correct Answer
    C. Both (a) and (b) as it is the requirement of law.
    Explanation
    A partner can file a suit for the enforcement of his rights, arising from a contract, against the firm or his present or past partners if the firm is registered and the name of such partner appears as a partner in the register of firms. This is because the law requires both conditions to be met in order for a partner to have the right to file a suit.

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  • 25. 

    A partner of an unregistered firm can file a suit against the firm or other partners, if the firm is got registered before filing the suit

    • A.

      True, as after registration partner's disability to file such suit is removed.

    • B.

      False, as this disability cannot be rectified.

    Correct Answer
    A. True, as after registration partner's disability to file such suit is removed.
    Explanation
    The statement is true because before the firm is registered, a partner of an unregistered firm does not have the legal standing to file a suit against the firm or other partners. However, once the firm is registered, the partner's disability to file such a suit is removed, and they can take legal action if necessary.

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  • 26. 

    A suit by a partner of an unregistered firm is liable to be dismissed and cannot be rectified after subsequent registration.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    In many jurisdictions, an unregistered firm does not have legal recognition as a separate entity. Therefore, a suit filed by a partner of an unregistered firm may not be recognized by the court and can be dismissed. Even if the firm subsequently gets registered, it cannot rectify the dismissal of the suit as the registration cannot be applied retroactively. Therefore, the statement is true.

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  • 27. 

    An unregistered firm which wants to enforce its rights, arising firm a contract, against a third party.

    • A.

      Can file a suit against the third party.

    • B.

      Cannot file a suit against the third party.

    • C.

      Can file a suit with court permission only.

    • D.

      Can file a suit with Registrar permission only.

    Correct Answer
    B. Cannot file a suit against the third party.
    Explanation
    An unregistered firm cannot file a suit against a third party because, according to the law, an unregistered firm does not have a separate legal identity. Therefore, it cannot enter into contracts or enforce its rights arising from a contract against a third party in a court of law. Only registered firms have the legal capacity to file a suit against a third party.

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  • 28. 

    A suit can be filed by or on behalf of the firm against the third party, if the

    • A.

      Firm is registered

    • B.

      Name of the persons, filing suit on behalf of the firm, appears as partners in the register of firms.

    • C.

      Both (a) and (b), as it is the requirement of law.

    • D.

      None of these, as there is no provision in the Act for filing f such suits.

    Correct Answer
    C. Both (a) and (b), as it is the requirement of law.
    Explanation
    A suit can be filed by or on behalf of the firm against a third party if the firm is registered and the names of the persons filing the suit on behalf of the firm appear as partners in the register of firms. Both of these conditions are necessary as per the requirement of the law.

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  • 29. 

    An unregistered firm can file a suit against the third party if the firm is got registered before filing the suit.

    • A.

      True, as after registration firm's disability to file such suit is removed.

    • B.

      False, as such disability can never be rectified.

    Correct Answer
    A. True, as after registration firm's disability to file such suit is removed.
    Explanation
    An unregistered firm is not legally recognized and does not have the capacity to sue or be sued. However, if the firm gets registered before filing a suit, it becomes a registered firm and gains the legal capacity to file a suit against a third party. Therefore, the statement is true as the disability of the firm to file such a suit is removed after registration.

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  • 30. 

    After the dismissal of a suit by an unregistered firm on the ground of non­registration, the firm, can file a fresh suit after getting the firm registration if that is still within the period of limitation.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    If a suit is dismissed due to the firm not being registered, the firm can file a fresh suit after obtaining registration if it is still within the period of limitation. This means that as long as the time limit for filing the suit has not expired, the firm can rectify the non-registration issue and proceed with a new lawsuit. Therefore, the statement is true.

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  • 31. 

    Which of the following is not the disability of an unregistered firm?

    • A.

      It cannot file a suit against third parties.

    • B.

      It cannot claim a set-off exceeding Rs.100

    • C.

      It cannot be sued by a third party.

    • D.

      Its partners cannot file a suit against the film.

    Correct Answer
    C. It cannot be sued by a third party.
    Explanation
    An unregistered firm can be sued by a third party. This means that if someone has a legal dispute with an unregistered firm, they have the right to take legal action against the firm. The other options listed are disabilities of an unregistered firm. It cannot file a suit against third parties, meaning it cannot take legal action against others. It cannot claim a set-off exceeding Rs.100, meaning it cannot deduct more than Rs.100 from any amount owed to it. Its partners cannot file a suit against the firm, meaning individual partners cannot take legal action against the firm on their own behalf.

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  • 32. 

    The third party can file a suit against the film. If the firm is

    • A.

      Registered

    • B.

      Unregistered

    • C.

      Either(a) or (b)

    • D.

      None of these.

    Correct Answer
    C. Either(a) or (b)
    Explanation
    If a film is registered, a third party can file a suit against the film for any legal issues or disputes. Similarly, if the film is unregistered, a third party can still file a suit against it. Therefore, the correct answer is either (a) or (b), indicating that the third party can file a suit against the film regardless of its registration status.

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  • 33. 

    The partners of an unregistered firm 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 of these.

    Correct Answer
    D. All of these.
    Explanation
    The partners of an unregistered firm can file a suit for the dissolution of the firm because they have the right to end their partnership. They can also file a suit for the accounts of the dissolved firm to ensure a fair distribution of assets and liabilities. Additionally, they can file a suit for the realization of property of the dissolved firm to recover any outstanding debts or assets. Therefore, all of these options are valid reasons for the partners to file a suit.

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  • 34. 

    An unregistered firm or it s partners may file a suit or enforce a claim of set-off if the amount of suit or set-off does not exceed

    • A.

      Rs.100

    • B.

      Rs.200

    • C.

      Rs.500

    • D.

      Rs.1,000.

    Correct Answer
    A. Rs.100
    Explanation
    An unregistered firm or its partners may file a suit or enforce a claim of set-off if the amount of the suit or set-off does not exceed Rs.100. This means that if the amount involved in the suit or set-off is equal to or less than Rs.100, the unregistered firm or its partners have the right to take legal action or claim a set-off.

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  • 35. 

    Any person who knowingly signs any statements containing false particulars about registration, shall be liable to punishment with imprisonment upto  ______________        

    • A.

      1M

    • B.

      2M

    • C.

      3M

    • D.

      6M

    Correct Answer
    C. 3M
    Explanation
    If a person knowingly signs statements containing false information about registration, they can be punished with imprisonment for up to 3 months.

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  • 36. 

    The registration of firm is______ under the Indian Partnership Act.

    • A.

      Optional

    • B.

      Compulsory

    • C.

      Irrelevant

    • D.

      Required under Section 54.

    Correct Answer
    A. Optional
    Explanation
    The correct answer is "Optional" because the registration of a firm under the Indian Partnership Act is not compulsory. While it is recommended to register a partnership firm for legal protection and to avail certain benefits, the law does not mandate it. Therefore, it is up to the partners to decide whether they want to register their firm or not.

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  • 37. 

    The Indian Partnership Act__________ for non­registration of the firm.

    • A.

      Imposes penalty on firm

    • B.

      Imposes penalty on partners

    • C.

      Imposes penalty on both

    • D.

      Provides for certain disabilities only.

    Correct Answer
    D. Provides for certain disabilities only.
    Explanation
    The Indian Partnership Act provides for certain disabilities only for non-registration of the firm. This means that if a partnership firm is not registered, it will face certain limitations and restrictions in terms of legal rights and benefits. However, it does not impose penalties on the firm or partners directly.

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  • 38. 

    Where the amount of suit or set-off does not exceed_____ , an unregistered firm or its partners are not debarred form filling the suit or enforcing the claim of set off.

    • A.

      Rs. 50

    • B.

      Rs.100

    • C.

      Rs. 500

    • D.

      Rs.1,000.

    Correct Answer
    B. Rs.100
    Explanation
    An unregistered firm or its partners are not debarred from filling a suit or enforcing a claim of set off when the amount of suit or set-off does not exceed Rs. 100.

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  • Current Version
  • Feb 26, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 24, 2011
    Quiz Created by
    Sweetsalman123
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