Business Law MCQ on Relations of Partners: Check the below Business Law MCQ on Relations of Partners with Answers Pdf free download. Business Law MCQ on Relations of Partners Questions for Business Law with Answers were prepared based on the latest exam pattern. We have provided Business Law MCQ on Relations of Partners with Answers to help students understand the concept very well.

Business Law MCQ on Relations of Partners

1. The liability of a minor partner is limited to the extent of:
(a) His share in the firm
(b) His personal assets
(c) His share in the firm as well as his personal assets
(d) He is not liable

2. When a minor on attaining the age of majority, has elected to become a partner, he becomes personally liable to third parties for all the acts of the firm from the date of his:
(a) Decision to become a partner
(b) Attaining the age of majority
(c) Admission to the benefits of the firm
(d) Attaining majority or decision to become a partner, whichever is earlier

3. Subject to contract between the partners, a partner does not have any one of the following rights:
(a) Right to receive remuneration
(b) Right to share profits
(c) Right to take part in the business
(d) Right to claim interest on capital

4. As per section 18, a partner in a partnership firm functions :
(a) In a dual capacity of principal and agent
(b) As a principal
(c) As an agent
(d) Neither as a principal nor as an agent

5. A Partner can bind a firm by his act if _________.
(a) Submits a dispute to arbitration
(b) Withdraws suit or proceeding filed on behalf of the firm
(c) Transfer immovable property belonging to the firm
(d) Buys goods on behalf of the firm

6. If a partner commits fraud in the conduct of the business of the firm:
(a) He shall indemnify the firm for any loss caused to it by his fraud
(b) He is not liable to the firm
(c) He is liable to the partners
(d) He is liable to the third parties

7. Where a partner has advanced any loan to the firm and the agreement provides for interest, but does not specify any rate, the rate shall be _________.
(a) 6%
(b) 8%
(c) 10%
(d) Nil

8. Partners are bound to carry on the business of the firm _________.
(a) To the greatest common advantage
(b) For the welfare to the society
(c) For the advantage of the family members
(d) For earning’personal profits

9. For ordinary business matters the decisions in the firm are taken on the basis of :
(a) Decision of majority of partners
(b) Unanimous decision of partners
(c) 2/3 majority
(d) 1/3 majority

10. Which are the matters that require unanimous consent of all the partners:
(a) Admission of a partner
(b) Transfer by a partner of his interest in the firm
(c) Fundamental change in the nature of the business
(d) All the above

11. When a partner transfers his share, the transferee of partners share has the following rights:
(a) To take part in the conduct of the business
(b) To require accounts
(c) To inspect books of the firm
(d) To receive the share of the profits of the transferring partner

12. Property of the firm does not include:
(a) Trademark owned by the firm
(b) Property acquired by or for the firm
(c) Goodwill of the business
(d) Property belonging to the partners

13. Notice to a partner operates as notice to the firm. For such purpose, notice may be given to :
(a) All the partners jointly
(b) A partner who habitually acts in the business of the firm
(c) Any two partners
(d) Only the dormant partners

14. For changing the nature of a business:
(a) Consent of all the partners is needed
(b) Consent of majority of partners is needed
(c) Consent of court is needed
(d) Consent of Registrar of firm is needed in reference to conduct of the business

15. A minor may give public notice of his decision to continue or withdraw from the firm on his attaining majority within:
(a) Three months
(b) Six months
(c) Nine months
(d) One year

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By Team Learning Mantras