An unregistered partnership firm: MCQ with Answer and Explanation

An unregistered partnership firm:
A. Cannot enter into contracts
B. Cannot sue but can be sued
C. Is illegal
D. Has no existence
Answer: Option B
Solution (By JKSSB Mock Tests)
An unregistered firm faces disabilities like not being able to enforce its rights in court.

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Practice More Accountancy and Book Keeping Questions

Question #1
The maximum number of partners in a banking partnership is:
A. 10
B. No limit
C. 20
D. 50

Correct Answer: Option A


Explanation:
As per Banking Regulation Act, the maximum number of partners for a banking firm is 10.

Question #2
In cost accounting, the 'Economic Batch Quantity' (EBQ) formula is identical to the EOQ formula. If the setup cost per batch is ₹500, annual demand is 10,000 units, and carrying cost is ₹10 per unit per annum, what is the EBQ?
A. 500 units
B. 2,000 units
C. 1,000 units
D. 1,414 units

Correct Answer: Option C


Explanation:
EBQ = Square root of (2 * Annual Demand * Setup Cost) / Carrying Cost per unit. EBQ = sqrt((2 * 10,000 * 500) / 10) = sqrt(1,000,000) = 1,000 units.

Question #3
Social Accounting in India is mostly used by:
A. Public sector enterprises
B. Manufacturing companies
C. Households
D. Small traders

Correct Answer: Option A


Explanation:
Public sector enterprises and large corporations often prepare social accounting statements to show their contribution to social objectives.