1. The Unpaid Seller's right of lien or right of stoppage in transit is NOT AFFECTED by any sale or other
disposition of the Goods made by Buyer, unless —
Correct : C. Seller has assented to such sale
2. Unpaid Seller's right of stoppage in transit can be exercised only when the Buyer is insolvent.
Correct : A. True
3. The word "perishable" in respect of goods, u/ s 54 of the Sale of Goods Act, means
Correct : D. either (a) or (b)
4. Where under a contract of sale the property in goods has passed to Buyer and Buyer wrong fully neglects
or refuses to pay the price, the Seller can sue the Buyer for —
Correct : D. all of the above
5. Where under a contract of sale, the Buyer wrong fully neglects or refuses to pay the price, the Seller can
sue the Buyer for the price of goods, if the property in goods -
Correct : B. has passed to buyer
6. Where under a contract of sale, the price is payable on a certain day irrespective of delivery and Buyer wrongfully neglects or refuses to pay the price, the Seller can sue the Buyer for the price of goods. For this purpose, goods —
Correct : B. need not be appropriated to the contract
7. Generally, where the Buyer has paid the price and Seller refuses to deliver the goods, buyer can sue the
seller for —
Correct : C. refund of price already paid
8. Where there is a breach of warranty -by seller; or where the Buyer elects or is compelled to treat any
breach of condition by the seller as breach of warranty, the buyer is entitled to —
Correct : D. either 'b' or 'c'
9. In case of interest by way of damages and special damages in a suit by the seller u/s 61, the interest may
be calculated from —
Correct : B. date on which the price was payable
10. When under a contract of sale, buyer has paid the price, but seller neglects to deliver goods, buyer has a
right to claim interest on the amount of price. The buyer can claim interest —
Correct : D. both (a) and (b)
11. If the goods are rejected by the buyer and the carrier or other bailee continues in possession of them, the
transit…………even if the seller has refused to receive them back.
Correct : D. both 'b' and 'c'
12. In an auction sale of goods, the seller makes use of pretended bidding to raise the price, the sale is —
Correct : C. voidable at the instance of the buyer
13. An auction sale is complete on the -
Correct : C. fall of hammer
14. In the case of sale by auction, where goods are put for sale in lots, each lot is prima facie the subject of—
Correct : C. either (a) or (b)
15. In the case of sale by auction, the seller of goods has a right to bid at the auction
Correct : B. only when the right to bid has been expressly reserved
16. Where a right to bid at the auction has been expressly reserved by the seller, the seller can depute —
Correct : A. not more than one agent to bid on his behalf
17. In case of sale by auction, a bid can be recalled at any time before the fall of hammer.
Correct : A. True
18. In the case of sale by auction, as soon as the hammer falls, goods become the property of the buyer —
Correct : A. even if there is a condition that the goods shall be" removed before payment
19. Where the sale is not notified to be subject to a right to bid on behalf of seller, it shall not be lawful for the seller—
Correct : C. either (a) or (b)
20. Where the sale is not notified to be subject to a right to bid on behalf of seller, and the Auctioneer knowingly takes any bid from the Seller or any such person, the sale shall be treated as………..by the buyer.
Correct : C. immoral
21. An act by which an intending bidder is discouraged or dissuaded from bidding in the auction sale is called
Correct : B. Damping
22. …………….is a form of combination of buyers to prevent competition among themselves at an auction
sale.
Correct : A. Knock-out agreement
23. In pretended bidding, sale is
Correct : C. voidable at the option of the buyer
24. In an auction sale, the property shall be sold to be
Correct : B. Highest bidder
25. On auctioneer will be liable for damages:
Correct : D. All the above
26. Unless excluded by an agreement to the contrary, where after a contract has been made but before it
has been performed, excise duty is increased
Correct : D. Both 'a' and 'c'
27. The Indian Partnership Act came into force on:
Correct : D. 1st October 1932, except section 69
28. Prior to the enactment of Indian Partnership Act, 1932 the law on this subject was contained in:
Correct : B. Indian Contract Act, 1872
29. The term 'partnership' has been defined under…………of the Partnership Act, 1932:
Correct : B. Section 4
30. The Indian Partnership Act, 1932 extends to the whole of India except:
Correct : A. The State of Jammu & Kashmir
31. What among the following is not an essential element of partnership:
Correct : C. The business must start within six months from the date of agreement
32. A Joint Hindu Family is created:
Correct : B. By operation of law or status
33. A club is the form of:
Correct : A. Association not for profit
34. The Partnership Act, 1932
Correct : A. Specifies the minimum number of partners in a firm
35. The ceiling on maximum number of partners in a firm is laid down in:
Correct : C. The Companies Act, 1956
36. The test of partnership is laid down in the following case:
Correct : A. Cox v. Hickman
37. A partnership firm
Correct : B. Is not a legal person
38. A partnership formed for the purpose of carrying on particular venture or undertaking is known as:
Correct : D. Particular partnership
39. From among the following who cannot become a partner of the firm?
Correct : A. A Hindu joint family
40. Under section 4 of the Indian Partnership Act, 1932, partnership is a:
Correct : B. Voluntarily legal relationship
41. A partnership in a banking business can have:
Correct : B. Not more than 10 partners
42. A partnership in a non-banking business can have:
Correct : C. Not more than 20 partners
43. The principle of……….is applicable to partners in a partnership:
Correct : A. Uberrimae fidei/Utmost Good Faith
44. Limited Liablility partnership is a form of partnership that:
Correct : D. Can be set up by LLP Act, 2008
45. Which of the following statements is true in respect of an HUF :
Correct : C. A coparcener is liable to extent of his share in the family state
46. A partnership firm is:
Correct : B. Not a distinct legal entity from its partners
47. A partnership cannot be constituted by:
Correct : D. Both (b) and (c)
48. A firm:
Correct : A. Cannot become a partner
49. Select the odd one :
Correct : A. Hindu Unlimited Family
50. Partnership is a relationship, which arises from:
Correct : B. An agreement
51. Which of the following is a valid partnership
Correct : A. Partnership between kartas of two Hindu Joint Families
52. The relation of partnership arises from contract and not from status and in particular the Indian Partnership
Act does not apply to the family business carried on by:
Correct : C. Burmese Buddhist husband and wife
53. A partnership for which no period or duration is fixed under the Indian Partnership Act is known as :
Correct : D. Partnership at will
54. For constituting a partnership within the meaning of section 4 of the Indian Partnership Act,1932.
Correct : D. All the above
55. In determining whether a group of persons is OR is not a firm, regards shall be had to :
Correct : D. Both (a) and (b)
56. The minimum number of persons required for a partnership is:
Correct : A. 2
57. The essential elements of partnership does not include:
Correct : A. Partnership should be registered
58. The partnership relation does not exist when:
Correct : D. None of the above.
59. ………….. does not take active part in conduct of the business.
Correct : C. Both (a) and (b)
60. The partnership firms becomes an illegal association, when:
Correct : D. Both (a) and (c)
61. Where the maximum number of partners in a firm carrying on banking business exceeds ten and in any
other firm exceeds twenty, then the partnership becomes a:
Correct : B. Illegal association
62. If Partnership Act, does not define an expression, then the reference shall be had to
Correct : A. Indian Contract Act
63. The unrepealed provisions of the Act shall continue to apply to firms, save insofar as they are
inconsistent with the express provisions of the Partnership Act.
Correct : C. Indian Contract Act
64. Which of these are not necessary for constituting a partnership?
Correct : D. Written contract
65. Which of this is not a valid partnership?
Correct : D. partnership between two HUFs
66. To form a partnership, the minimum capital contribution should be:
Correct : D. There is no minimum limit
67. Which is NOT a characteristic of partnership firms?
Correct : A. Perpetual succession
68. The maximum number of persons permissible for a valid partnership for doing Banking business is:
Correct : B. 10
69. For which of the following purpose is partner ship formed?
Correct : D. Business purpose
70. Which of these sharing arrangements reflects a partnership?
Correct : C. By a partner who does not actively engage himself in the day to day business affairs
71. To form a partnership, the parties should share
Correct : D. Profits and losses but some partners may not share losses
72. Where no time is expressly stated for its duration and there is no contract to fix the duration, the
partnership may be terminated at a moment's notice by the other party. This partnership is called -
Correct : B. Partnership at will
73. When a partner of a firm agrees to share his own share of profits with an outsider, it called:
Correct : A. Sub-partnership
74. Which of the parties may be admitted as a partner?
Correct : B. Minor
75. A new partnership may be formed by the following persons:
Correct : C. Minimum two majors and minor only admitted to the benefits of firm
76. Where the goodwill of the firm is sold after dissolution, a partner may carry on a business, competing with that of the buyer and he, subject to the agreement between the buyer and him self, may not:
Correct : D. All the above
77. Out of the following statements which is true-
Correct : A. A sleeping partner is also liable to the third parties
78. Registration of the firm under the Partnership Act is:
Correct : A. Optional
79. A partnership firm has to be registered with:
Correct : B. Registrar of firms
80. In case of a unregistered partnership firm
Correct : D. All the above
81. The Partnership Act by section 69 indirectly renders the registration firm compulsory by
providing:
Correct : A. Certain disabilities
82. A firm may be registered :
Correct : B. At a later date, after its formation
83. In the application for registration of a firm, which of the following is not required to be given:
Correct : D. Capital contribution of partners
84. Which of the following details is required to be given in an application for registration of a firm?
Correct : C. Place of business of the firm
85. Application for Registration of firms should be signed by -
Correct : D. Either (a) or (b)
86. A firm name shall not contain any of the following words :
Correct : D. All the above
87. Registration of firm is effective from —
Correct : A. The date when the Registrar files the statement and makes entries in the Register of firms
88. After the registration of a firm, if a partner retires, such a change in the constitution of the firm requires:
Correct : A. A notice to be sent to the Registrar
89. Intimation about closing and opening of a branch, after registration, is required to be given by:
Correct : B. Any partner or agent of the firm
90. If an unregistered firm intends to file a suit against a third party, it should get itself registered before filing
the suit.
Correct : B. True, as after registration firm's disability to file such suit is removed.
91. Which of the following are the disabilities of an unregistered firm?
Correct : D. All the above
92. In case of an unregistered firm the partners can file a suit for the:
Correct : D. All the above
93. Any person who supplies false information to the Registrar of firms, shall be liable to punishment with
imprisonment upto ………
Correct : A. Three months
94. The Register of firms shall be open to inspection:
Correct : A. By any person on payment of prescribed fees
95. Which of the following statements is incorrect?
Correct : C. A third party cannot file a suit against an un-registered firm
96. As per section 18, a partner in a partnership firm functions:
Correct : A. In a dual capacity of principal and agent
97. If a partner commits fraud in the conduct of the business of the firm:
Correct : A. He shall indemnify the firm for any loss caused to it by his fraud
98. Partners are bound to carry on the business of the firm —
Correct : A. To the greatest common advantage
99. Which of the following statements is / are false :
Correct : D. Right to receive remuneration
100. Which of the following statements is correct?
Correct : C. The liability of a retired partner to third parties continues even after his retirement