| S.No | Question | Options (A, B, C, D) | Answer |
| 1 | When did the Indian Partnership Act come into force? | A) 1 Oct 1932, B) 1 April 1932, C) 1 July 1932, D) 26 Jan 1932 | A |
| 2 | Which section defines “Partnership”? | A) Sec 2, B) Sec 4, C) Sec 6, D) Sec 10 | B |
| 3 | What is the minimum number of persons required for a partnership? | A) 1, B) 2, C) 7, D) 10 | B |
| 4 | Before this Act, partnership provisions were part of which law? | A) TPA, B) IPC, C) Indian Contract Act, D) Companies Act | C |
| 5 | The principle of “Mutual Agency” is related to which section? | A) Sec 4, B) Sec 13, C) Sec 18, D) Sec 25 | C |
| 6 | Can a minor become a partner in a firm? | A) Full partner, B) No, C) Only for benefits, D) With parents’ consent | C |
| 7 | What is another name for a Partnership Deed? | A) AoA, B) Articles of Partnership, C) MoU, D) Partnership Bond | B |
| 8 | Which words cannot be used in a firm’s name without permission? | A) Partner’s name, B) Nature of business, C) Empire/Crown, D) City name | C |
| 9 | What is the maximum limit of partners (as per Companies Act 2013)? | A) 20, B) 50, C) 100, D) No limit | B |
| 10 | What is the “True Test” of a partnership? | A) Profit sharing, B) Agreement, C) Mutual Agency, D) Capital | C |
| 11 | If the deed is silent, what is the profit-sharing ratio? | A) Capital ratio, B) Seniority, C) Equal, D) Decided by Court | C |
| 12 | What is the nature of a partner’s liability? | A) Limited, B) Unlimited, Joint & Several, C) Up to capital, D) None | B |
| 13 | Is a partner entitled to a salary under Section 13? | A) Always, B) Only if agreed in deed, C) Only if there’s profit, D) Never | B |
| 14 | Interest rate on a partner’s loan to the firm (if deed is silent)? | A) 5%, B) 6%, C) 10%, D) 12% | B |
| 15 | “Partner by Holding Out” is defined in which section? | A) Sec 25, B) Sec 28, C) Sec 30, D) Sec 32 | B |
| 16 | When can a new partner be admitted? | A) Anytime, B) Consent of all partners, C) Majority consent, D) On paying capital | B |
| 17 | Rights of an outgoing partner are discussed in which section? | A) Sec 35, B) Sec 37, C) Sec 40, D) Sec 42 | B |
| 18 | Who owns the property of the firm? | A) Senior partner, B) Max capital holder, C) All partners jointly, D) No one | C |
| 19 | Implied Authority of a partner is found in which section? | A) Sec 18, B) Sec 19, C) Sec 20, D) Sec 21 | B |
| 20 | Can a partner sell the firm’s immovable property under implied authority? | A) Yes, B) No, C) Only managing partner, D) Only in emergency | B |
| 21 | Is registration of a partnership firm mandatory in India? | A) Yes, B) No (Optional), C) Only for manufacturing, D) Only for banks | B |
| 22 | What is the main disability of an unregistered firm (Sec 69)? | A) Cannot do business, B) Cannot file a suit, C) Govt fine, D) No bank account | B |
| 23 | What is “Partnership at Will”? | A) For a fixed time, B) For a specific project, C) No fixed duration, D) Court-made | C |
| 24 | Dissolution of a firm is covered in which Chapter? | A) Chap IV, B) Chap VI, C) Chap VII, D) Chap II | B |
| 25 | Dissolution by the Court happens under which section? | A) Sec 40, B) Sec 44, C) Sec 42, D) Sec 39 | B |
| 26 | If all partners except one become insolvent, what happens? | A) Compulsory Dissolution, B) Firm continues, C) New partners added, D) Court decides | A |
| 27 | Dissolution by notice is possible in which type of partnership? | A) Particular, B) Partnership at will, C) Never, D) Only in fraud cases | B |
| 28 | After dissolution, how are liabilities paid first? | A) Personal assets, B) Firm’s profits/assets, C) Govt funds, D) New loans | B |
| 29 | Is Goodwill valued at the time of dissolution? | A) Yes, B) No, C) Optional, D) Only if there is a loss | A |
| 30 | Who appoints the Registrar of Firms? | A) Central Govt, B) State Govt, C) Supreme Court, D) District Collector | B |
| 31 | An unregistered firm can claim a “Set-off” up to what amount? | A) Rs 100, B) Rs 500, C) Rs 1000, D) Rs 5000 | A |
| 32 | Why is Public Notice necessary during retirement? | A) To hire new partners, B) To avoid future liability, C) For tax purposes, D) Under Sec 30 | B |
| 33 | Does dissolution of the firm mean dissolution of the partnership? | A) No, B) Yes, C) Sometimes, D) Never | B |
| 34 | Is a Sleeping Partner required to give public notice on retirement? | A) Yes, B) No, C) After 10 years, D) Only to creditors | B |
| 35 | Who is a Nominal Partner? | A) Contributes capital, B) Lends only their name, C) Secret partner, D) A minor | B |
| 36 | What can a minor inspect in a firm? | A) All books, B) Nothing, C) Only with Court permit, D) Only copies of accounts | D |
| 37 | When does Reconstitution of a firm occur? | A) Admission, B) Retirement, C) Death, D) All of the above | D |
| 38 | Which section deals with the Expulsion of a Partner? | A) Sec 31, B) Sec 33, C) Sec 35, D) Sec 38 | B |
| 39 | Can a partner carry on a competing business? | A) Yes, B) No (without consent), C) Part-time only, D) Only if sleeping partner | B |
| 40 | If the business becomes illegal, what is the status of the firm? | A) Fine is levied, B) Compulsory Dissolution, C) New agreement, D) Continues | B |
| 41 | What does Section 48 deal with? | A) Settlement of accounts, B) Registration, C) Minor’s rights, D) Duties | A |
| 42 | When is a Continuing Guarantee revoked? | A) On admission, B) Change in firm constitution, C) On profit, D) New loan | B |
| 43 | What is a Partner’s Lien? | A) Right over firm, B) Right over surplus assets, C) Bank’s right, D) Creditor’s right | B |
| 44 | Can a partnership deed be oral? | A) Yes, it is valid, B) No, must be written, C) Only during registration, D) Only for family | A |
| 45 | Who is an “Active Partner”? | A) Profit taker only, B) Participates in management, C) No capital, D) 18 years old | B |
| 46 | Whose permission is needed to use the word “National” in a firm name? | A) RBI, B) Central Govt, C) Registrar, D) High Court | B |
| 47 | General duties of partners are mentioned in which section? | A) Sec 9, B) Sec 12, C) Sec 15, D) Sec 20 | A |
| 48 | Do legal heirs automatically become partners upon a partner’s death? | A) Yes, B) No (Sec 35), C) If they have a degree, D) For 6 months only | B |
| 49 | Registration application is submitted under which section? | A) Sec 55, B) Sec 58, C) Sec 60, D) Sec 62 | B |
| 50 | Who has the power to amend the Partnership Act? | A) Supreme Court, B) State Govt, C) Parliament, D) No one | C |
