40. Which of the following statements is TRUE?*

A new partner is liable for the debts of the firm made both before and after he joined the partnership

A .When a partner retires from the firm, he is liable for the debts of the firm before his retirement.

B .When a partner retires from the firm, he is liable for the debts of the firm after his retirement

c. A new partner is liable for the debts of the firm made before he joined the partnership.

If a partner failed to disclose any profits that he gains in performing of his duties to the other partners, the said profits is considered as a _____*

damages

remedies

compesation

secret profit

21. Can a partner uses the partnership property for his personal use?*

can because he has right on the partnership property

cannot because the property is belongs to other partners

can because he has shares in the firm

cannot because the property is belongs to the firm

22. Which of this statement is NOT the way to determine the partnership property?*

property originally brought into the partnership stocks

where the property is brought using the partner's personal money

the property is brought using the partnership money

where the property used by a partnership is inherited property

23. There are two(2) ways to dissolve a partnership, namely _____ and _____.*

voluntarily dissolution, dissolution by court order

independent dissolution, automatic dissolution

automatic dissolution, manual dissolution

automatic dissolution, dissolution by court order

24. The following are the reasons for the court to grant an order of dissolution of a partnership EXCEPT*

no opportunity of making profit

expiration of a fixed term.

a partner becomes permanently of unsound mind

breach of the partnership agreement by a partner.

25. If a firm appoints a partner without a specific duration of partnership, this partnership is considered as a _____*

partnership with a duration

partnership with fixed term

partnership forever

partnership at will

26. Under Section 35(1) of Partnership Act 1961, every partnership is dissolved by the _____ or bankruptcy of any partner.*

death

lunatic

permanent incapacity

unsoundmind

27. Dissolution by supervening illegality means _____*

dissolution by completing the project

dissolution by the ending of certain event

dissolution by sudden change in circumstance

dissolution by the expiry of certain term

28. Partnership may not likely be dissolved on the ground of unsound mind of partner unless _____*

it has been agreed by all partners

it is not affect the performance of the firm

it is prove that the partner is sound mind

a solid medical evidence is given to the court

29. Towards what extends does a bad behavior can cause a partnership to be dissolved by the court?*

the bad behavior affect the firm prejudicially

the bad behavior not a serious misconduct

the bad behavior not affect the firm at all

the bad behavior cause problems to the other partners

30. According to Section 37(e) of Partnership Act 1961, a firm who is impossible to make a profit can apply to dissolve the firm because _____*

not give any benefits to the partners

wasting of their time

partnership exists to make profits

not a productive firm

31. Below are the reasons for partners to apply the dissolution under just and equitable ground EXCEPT*

stubborn

no mutual trust

deadlock

cannot cooperate

32. According to Re Yenidje Tobacco Co. Ltd's case, the firm was dissolved because _____*

the firm suffered loses

there is mutual trust and confidence between partners

the secretary of the firm has a bad behavior

there is no mutual trust and confidence between partners

33. What is the liability of a partner for debts and obligations incurred by the firm after his death?*

criminal liablity

joint liability

several liability

tortious liability

34. Which of the following is a correct statement relating to the criminal liabilities of partners?*

Criminal liabilities is severe liabilities

Criminal liabilities is a personal liability

The other partners will be severally liable

The other partners will be jointly liable