CAIIB · BRBL

PARTNERSHIP FIRMS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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What is the maximum number of partners allowed in a partnership firm engaged in banking business under the Indian Partnership Act, 1932?

A partnership firm engaged in banking business cannot have more than 10 partners, as prescribed under Section 11 of the Companies Act, 2013.

What is the minimum number of persons required to form a partnership firm?

Minimum two persons are required to form a partnership.

Which legislation primarily governs partnership firms in India?

Partnership firms in India are primarily governed by the Indian Partnership Act, 1932, which defines the rights, duties, and liabilities of partners.

Which section of the Indian Partnership Act defines 'partner', 'firm', and 'firm name'?

Section 4 of the Indian Partnership Act, 1932 defines these terms.

What is the definition of 'partnership' as per the Indian Partnership Act, 1932?

Partnership is defined as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

What is the primary test to determine the existence of a partnership under Indian law?

Mutual agency and sharing of profits are the primary tests.

Is registration of a partnership firm compulsory under the Indian Partnership Act, 1932?

Registration of a partnership firm is not compulsory under the Indian Partnership Act, 1932; however, an unregistered firm faces certain legal disabilities such as inability to file suits against third parties.

What is the concept of 'mutual agency' in a partnership firm?

Each partner can bind the firm by acts done in firm's name.

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