Live MCQs of Fundamentals of Partnership (Features) with Result (Quiz - 2)

Live MCQs of Fundamentals of Partnership (Features) with Result (Quiz – 2)

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Post published:September 22, 2025
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Live MCQs of Fundamentals of Partnership (Features) with Result (Quiz – 2)

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You have 12 Questions to Answer in 12 Minutes. You would get your result just after finishing it free of cost.

Fundamentals of Partnership (Features of Partnership) Quiz - 2

1 / 12

What is the currently prescribed maximum number of partners in a firm as per the Companies (Miscellaneous) Rules, 2014?

100

2 / 12

If a partnership firm has more than the prescribed number of partners as per the Companies (Miscellaneous) Rules, 2014, what consequence might it face?

It must be converted into a private limited company

It must dissolve immediately

It must obtain special approval from the Ministry of Corporate Affairs

It must operate as an unregistered entity

3 / 12

Assertion (A): Partners are principals but not the agents of other partners.

Reason (R): Partners are principals as well as agents of other partners.

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are false

Assertion (A) is false, but Reason (R) is true

4 / 12

In 2014, the central government exercised its authority under Section 464 and prescribed a maximum number of partners for a firm. Under which rule was this limit set?

Rule 5 of the Companies (Miscellaneous) Rules, 2014

Rule 10 of the Companies (Miscellaneous) Rules, 2014

Rule 15 of the Companies (Miscellaneous) Rules, 2014

Rule 20 of the Companies (Miscellaneous) Rules, 2014

5 / 12

Assertion (A): As per Rule 10 of the Companies (Miscellaneous) Rules, 2014, a partnership firm in India can have a maximum of 50 partners.

Reason (R): The Companies (Miscellaneous) Rules, 2014 were introduced to restrict large partnership firms from operating as unregistered entities.

Both A and R are true, and R is the correct explanation of A.

Both A and R are true, but R is not the correct explanation of A.

A is true, but R is false.

A is false, but R is true.

6 / 12

Assertion (A): A minor can not be admitted in a firm as a partner.

Reason (R): A minor can participate in the profits of a firm.

Assertion (A) is correct, but Reason (R) is wrong.

Both Assertion (A) and Reason (R) are correct.

Assertion (A) is wrong, but Reason (R) is correct.

Both Assertion (A) and Reason (R) are wrong.

7 / 12

Assertion (A): The Indian Partnership Act, 1932 remains the primary legislation governing partnership firms in India.

Reason (R): The Companies Act, 2013 entirely replaced the Indian Partnership Act, 1932 for regulating partnership firms.

Both A and R are true, and R is the correct explanation of A.

Both A and R are true, but R is not the correct explanation of A.

A is true, but R is false.

A is false, but R is true

8 / 12

Assertion (A): A Partnership firm is a separate and distinct entity from partners from the viewpoint of accounting.

Reason (R): As per the Business Entity Concept, business transactions are recorded from the viewpoint of the firm. Hence, it is a separate and distinct entity from partners from the viewpoint of accounting.

Assertion (A) and Reason (R) are correct and Reason Correctly explains Assertion

Both Assertion and Reason (R) are correct but Reason (R) does not correctly explain (A)

Both Assertion (A) and Reason (R) are incorrect.

Assertion (A) is correct but Reason (R) is incorrect.

9 / 12

Assertion (A): The Companies Act, 2013 does not specify the maximum number of partners in a firm.

Reason (R): The Indian Partnership Act, 1932 governs the maximum limit for partners in a firm.

Both A and R are true, and R is the correct explanation of A.

Both A and R are true, but R is not the correct explanation of A.

A is true, but R is false.

A is false, but R is true.

10 / 12

Assertion (A): The central government is empowered to prescribe the maximum number of partners in a firm under Section 464 of the Companies Act, 2013.

Reason (R): The Companies Act, 2013 provides an upper limit of 100 partners in a firm by default, without requiring government intervention.

Both A and R are true, and R is the correct explanation of A.

Both A and R are true, but R is not the correct explanation of A.

A is true, but R is false.

A is false, but R is true.

11 / 12

Assertion (A): A partnership firm can have maximum 50 partners.

Reason (R): Maximum limit of partners is prescribed in the Partnership Act, of 1932.

Both (A) and (R) are correct and (R) is the correct explanation of (A)

Both (A) and (R) are correct but (R) is not the correct explanation of (A)

Only (A) is correct

Both (A) and (R) are wrong

12 / 12

Assertion (A): If a partnership firm has more than 50 partners, it must register as a private limited company.

Reason (R): A firm exceeding the prescribed maximum number of partners under the Companies (Miscellaneous) Rules, 2014 is considered a public company by default.

Both A and R are true, and R is the correct explanation of A.

Both A and R are true, but R is not the correct explanation of A.

A is true, but R is false.

A is false, but R is true.

Your score is

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