1.Azam and Sohail are partners and have a firm named Fiberoptic Ent. They enter into a contract with Azmat in the name of the firm. The firm is unable to fulfill the contract and Azmat therefore sues the firm. As far as legal position is concerned.

a.The partners are liable for the breach of contract in their personal capacity and the firm will not be liable.

b.The firm is a legal concern therefore responsible for all contracts entered into in her name.

c.The firm will only be liable if it's registered with the registrar of firms.

d.None of the above is correct.

2.The distinction between a partnership firm and a company is:

a.A company is a legal entity, whereas Partnership firm is not.

b.A partnership firm does not require registration as per Partnership Act whereas a company cannot come into existence without registration.

c.A partnership firm does not need to be audited as per Company Act .

d.All the above is true.

3.On 4^th April 2021, Saif, Rabee & Hashim register Azad Pvt Ltd Co. as a private company and become its directors. The company enters into a contract with Habib Group of Companies for an amount of Rs. 3 Million but is unable to fulfill the contract. The directors are now facing a case against them and have hired you to represent them in the court. The legal position is that:

a.All the partners' saif, Rabee and Hashim are personally liable to Habib Group for the entire loss.

b.Azad Pvt Ltd Co. and not the three directors will be liable for the contract.

c.Liability of Azad Pvt Co. Ltd is unlimited.

d.Both 'b' & 'c' are correct.

4.Mr. Qureshi is Grandfather of Alam, and father of Akmal. They are all partners in a firm Golden Ent. and share the profit in the ratio of 46 %, 14 % and 40 % respectively. On 15^th April 2021 Mr. Qureshi dies & Rabil his other son (brother of Akmal, Uncle of Alam) who was not the partner earlier wants now to become a partner in the firm, as per his inheritance share of 50 % with his brother i.e. Mr. Akmal. He is ready to go to the court if the matter is not resolved within the family. Keeping your knowledge of the law what is the likely outcome from the court from among the following:

a.Mr.Rabil is a partner in the firm as he has inherited the property of his father after his death so he becomes a partner of 23 % now.

b.Mr. Rabil is not a partner but can become partner only with the consent of other partners.

c.Mr. Rabil becomes a partner by estoppel.

d.The firm being an independent concern will decide at its own.

5.Three brothers Shan, Ahsan & Jahan share the rent of a house their father left them on his death. Their share is 35 %, 30 % & 35 % respectively.

a.They are deemed to be partners as per the partnership act if they make a deed to share profits.

b.They are not partners in the eyes of law as per the definition of partnership act.

c.They are partners by holding out.

d.None of the above is correct.