CA Foundation : Reconsitution & Dissolution of Firm Quiz 1 Created on September 13, 2023 By admin Reconstitution and Dissolution of a Firm Quiz 1 / 16 A partner may not be expelled from the firm by any majority of partners unless: The terms of partnership agreement confer the power to expel a partner The expulsion is made by a majority of the partners of the firm The decision of expulsion is made by all the partners in good faith All the above 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: Such restraint is in respect of carrying of any business similar to that of the firm Such agreement is made by the partners beforehand i.e. well in advance Such agreement is made without any specific reference to time period. Such agreement is made without reference to local limits. 3 / 16 A notice in writing by one partner must be given to all the partners of the firm in case of: Dissolution on the happening of contingencies Dissolution of partnership at will Dissolution by court Compulsory dissolution 4 / 16 A retired partner may be liable: For debts incurred before retirement. For debts incurred after retirement until public notice is given. Either (a) or (b) Both (a) and (b) 5 / 16 A partner can be expelled from a firm: If power to expel is conferred by express agreement. If the power is exercised in good faith. By majority of partners after giving oppor¬tunity of explanation. All of the above. 6 / 16 Retiring partner continues to remain liable to third parties for acts of the firm: Until public notice is given of the retirement. From the date of retirement Upto the close of the financial year in which he retires. So long as the firm uses his name. 7 / 16 The partners authority to act for the firm and to bind their co-partners continues even after the dissolution of the firm: To wind up the affairs of the firm To complete the unfinished transactions Both of above None of the above. 8 / 16 A firm is compulsorily dissolved __________. By adjudication of any partner of the firm as insolvent By the death of a partner By adjudication of all the partners or of all the partners but one is insolvent In any of the above circumstances 9 / 16 Dissolution of partnership between all the partners of a firm is called __________. Dissolution of partnership. Dissolution of partners Dissolution of the firm. Reconstitution of firm. 10 / 16 If all partners, or all but one partner, of the firm are declared insolvent __________. Firm is automatically dissolved Firm becomes illegal association. Firm is also declared insolvent. Firm becomes illegal entity. 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 __________. He can use the firm’s name He cannot use the firm’s name He cannot represent himself as carrying on the business of the firm Both (b) and (c). 12 / 16 No public notice is required: On the death of a partner. On minor attaining majority. Retirement of partner. Dissolution of firm. 13 / 16 Which of the following conditions is not necessary for expulsion of a partner? The power of expulsion must be given in the partnership deed. Such power has been exercised by a majority of the partners. Such power has been exercised in good faith for the interest of the firm and not used as vengeance against a partner An FIR has been filed in the Police Station. 14 / 16 Public Notice under the Partnership Act, is given in the following manner: Serving a copy of the Notice to the Registrar of firms Publishing the Notice in the Official Gazette Publishing the Notice in one vernacular newspaper circulating in the district where the firm’s principal place of business is situated All of the above. 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 : Valid, if the restrictions imposed are rea-sonable Valid (whether restrictions are reasonable or not) Void Voidable 16 / 16 The accounting rule in respect of loss arising due to insolvency of a partner is dealt within __________. Derry v. Peek Carlill v. Carbolic Smoke Ball Co. Garner v. Murray Chinnaiah v. Ramaiya. Your score isThe average score is 100% LinkedIn Facebook VKontakte 0% Restart quiz 0 Created on September 13, 2023 By admin 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. True False 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. True False 3 / 17 A firm signifies the abstract legal relation of the partners. True False 4 / 17 A firm can be held liable for all wrongful acts of a partner done in the ordinary course of partnership business. True False 5 / 17 Permanent incapacity of a partner is not a ground for dissolution of partnership firm. True False 6 / 17 Legal representatives are required to give public notice so as to avoid the liability of the deceased partner. True False 7 / 17 The test of existence of partnership is the element of sharing of profits rather than mutual agency. True False 8 / 17 Losses including deficiencies of capital shall be first paid out of capital. True False 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. True False 10 / 17 Public notice is not necessary on a minor admitted to the benefits of partnership opting to become a partner in the firm. True False 11 / 17 Partnership will get dissolved if all the partnership except one are declared insolvent. True False 12 / 17 Dissolution of firm automatically results in dissolution of partnership. True False 13 / 17 When a partner of a firm becomes lunatic, the firm dissolves automatically. True False 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. True False 15 / 17 Indian Partnership act imposes penalty for non-registration of the firm. True False 16 / 17 The term dissolution of partnership and dissolution of firm are synonymous. True False 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. True False Your score isThe average score is 0% LinkedIn Facebook VKontakte 0% Restart quiz
