Live MCQs Mock Test Fundamentals of Partnership (Definition & Nature) with Result (Free) Post author:Anurag Pathak Post published:September 16, 2025 Post category:Uncategorized Post comments:0 Comments 0% 123456789101112 There are 26 Questions, After Attempting you will get your result immediately. Fundamentals of Partnership (Definition & Nature) (Quiz - 1) at least two people is required to come in a contract. Thus parntership required minimum 2 persons. 1 / 12 What is the minimum number of persons required to form a partnership under the Indian Partnership Act, 1932? Three One Four two 2 / 12 Meera and Sohail jointly operate an event management firm. Their partnership agreement specifies that Sohail will receive 70% of the profits, while Meera will receive 30%. However, it states that Meera will not contribute to covering losses, which Sohail alone will bear. Under the Indian Partnership Act, 1932, how does this arrangement impact their partnership status? Sohail must formally register the firm as a sole proprietorship. Meera remains a partner because she shares the profits, despite not sharing the losses. Their agreement is invalid under partnership law. Meera cannot be considered a partner since she does not share the losses. 3 / 12 Assertion (A): Neha and Priyansh run "Elite Fashion," a partnership firm. Profits are shared equally, but Neha is solely responsible for covering losses. Reason (R): The Indian Partnership Act, 1932 mandates that all partners must share losses equally in a firm. A is false, but R is true A is true, but R is false Both A and R are true, but R is not the correct explanation of A Both A and R are true, and R is the correct explanation of A A partnership firm can be run by all the partners or any partner or partners on behalf of the other parnters. 4 / 12 In a partnership, business activities may be conducted by: Only the managing partner A government-appointed trustee A financial institution overseeing the firm A single partner acting on behalf of all partners 5 / 12 Assertion (A): Rohit and Aman co-own a digital marketing firm, "Bright Ads," under a partnership agreement. If Aman misuses company funds, Rohit can also be held legally responsible. Reason (R): In a partnership, individual partners are legally liable for the actions of other partners. A is false, but R is true A is true, but R is false Both A and R are true, and R is the correct explanation of A Both A and R are true, and R is the correct explanation of A 6 / 12 Rahul, Meena, and Arjun start a restaurant together. They agree to share the profits and manage different aspects of the business. Individually, what are Rahul, Meena, and Arjun called under the Indian Partnership Act, 1932? Directors Employees Partners Shareholders A partnership is a mutual contract among partners where they have agreed to share profits of the business run by one or any partner or partners on behalf of the rest. 7 / 12 Which of the following best describes the essence of a partnership as per the Indian Partnership Act, 1932? A state-controlled business entity A legal relationship requiring registration A business model regulated under company laws A contractual relation based on profit-sharing To be a partner, it is mandatory to share the profits not losses. 8 / 12 Ravi and Arjun start a business together. They agree that Ravi will manage operations while Arjun will provide financial backing. Their agreement states that only Ravi will bear any losses, while both will share the profits equally. Based on the Indian Partnership Act, 1932, which statement is correct? Ravi is the sole owner since he bears the losses Ravi and Arjun qualify as partners because they have agreed to share profits. The business must register as a company to be valid Ravi and Arjun are not partners because losses are not shared equally. As per the Definition of Partnership, the partners start a business to share the profits of it. sharing losses of the firm is not mandatory to be a partner. 9 / 12 According to the Indian Partnership Act, 1932, partnership is based on an agreement to: Share ownership of assets Operate independently within a joint framework Share profits of a business Divide management responsibilities equally It is not mandatory to share the loss to be a partner in the firm. Sharing of profits is mandatory. 10 / 12 Assertion (A): A partnership is formed when two or more persons agree to share the profits of a business. Reason (R): As per Section 4 of the Indian Partnership Act, 1932, it is necessary to share both profits and losses to be considered a partner. Both A and R are true, but R is not the correct explanation of A A is false, but R is true Both A and R are true, and R is the correct explanation of A A is true, but R is false 11 / 12 Assertion (A): Anisha and Suraj start "AS Interiors," a partnership firm specializing in home decor. From an accounting perspective, the firm is treated as a separate entity from Anisha and Suraj. Reason (R): The Business Entity Principle states that a firm's financial records must be separate from the personal accounts of its partners. A is false, but R is true A is true, but R is false 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 12 / 12 Assertion (A): A partnership firm can be carried on by all partners or any one of them acting for all. Reason (R): In a partnership, every partner has unlimited personal liability for the firm's actions, including fraudulent activities. A is false, but R is true A is true, but R is false Both A and R are true, but R is not the correct explanation of A Both A and R are true, and R is the correct explanation of A Your score isThe average score is 0% 0% Restart quiz You Might Also Like Live MCQs of Fundamentals of Partnership (Features) with Result (Quiz – 2) September 22, 2025 Live MCQs Mock Test Fundamentals of Partnership (Need of Partnership) with Result (Free) September 13, 2025 Live MCQs of Fundamentals of Partnership (Features) with Result (Quiz – 1) September 17, 2025 Leave a Reply Cancel replyCommentEnter your name or username to comment Enter your email address to comment Enter your website URL (optional) Save my name, email, and website in this browser for the next time I comment.
Live MCQs Mock Test Fundamentals of Partnership (Need of Partnership) with Result (Free) September 13, 2025