MCQs on limited Liability Partnership Act, 2008

Q.1:- A limited liability partnership is:

• Not a separate entity from that of its partners
• A legal entity separate from that of its partners
• A body corporate
• Only B and C are correct

Q.2:- A LLP shall be governed by the provisions of:

• The Companies Act, 2013
• The Limited Liability Partnership Act, 2008
• The Co-operative Societies Act, 1912
• The Indian Partnership Act, 1932

Q.3:- Whether a HUF can become partner in LLP:

• HUF may become partner of LLP provided the Registrar may grant permission in this behalf.
• No, HUF can’t become partner in the LLP .
• Yes, HUF may become partner of LLP.
• None of the above.

Q.4:- How many designated partners are required in LLP:

• At least two designated partners
• Seven designated partners
• Two designated partners
• At least seven designated partners

Q.5:- The LLP shall file the Statement of Account and Solvency in the prescribed form. Which is this Form:

• Form 8
• Form 7
• Form 6
• Form 5

Q.6:- Who is the authority to grant compounding of offence under the LLP Act:

• The Registrar of Firms
• The Central Government
• The Registrar
• The Registrar of Co-operatives

Q.7:- What is the time limit within which LLP shall file Annual Return with the Registrar:

• Within 30 days of closure of its financial year.
• Within 45 days of closure of its financial year.
• Within 60 days of closure of its financial year.
• Within 15 days of closure of its financial year.

Q.8:- Every LLP shall keep books of account, which shall contain:

• Statement of cost of goods purchased inventories, work-in-progress, finished goods and cost of goods sold.
• A record of the assets and liabilities of the LLP.
• Particulars of all sums of money received and expended by the LLP and the matters in respect of which the receipt and expenditure takes place.
• All of the above.

Q.9:- At which place the LLP shall maintain books of accounts:

• At its Branch Office
• At its Corporate Office
• At its Head Office
• At its Registered Office

Q.10:- The LLP shall maintain proper books of account relating to its affairs for each year of its existence on which basis:

• Accrual basis
• Double entry system of accounting
• Cash basis
• All of the above.

Q.11:- Who shall sign the Statement of Account and Solvency prepared by the LLP:

• By any one partner, authorised in this behalf
• By at least two partners, authorised in this behalf
• By all the partners
• By the designated partners

Q.12:- The Statement of Account and Solvency is required to be filed by the LLP with:

• The Registrar of Co-op Societies
• Need not to file.
• The Registrar
• The Registrar of Firms

Q.13:- Whether incorporation documents, names of partners and changes, if any, Statement of Account and Solvency and Annual Return field with the Registrar can be inspected:

• Yes, it can be inspected by any of the partners of the LLP
• Yes, It can be inspected only Government Authorities and Banks
• Yes, it can be inspected only the creditors of the LLP
• Yes, it can be inspected by any person on payment of the prescribed fee.

Q.14:- The books of account which a LLP is required to keep shall be preserved for how many years:

• Eight Years
• Six Years
• Four years
• Two years

Q.15:- What is the fee to paid to the Registrar for filing of the Statement of Account and Solvency, where the contribution does not exceed Rs 1 lakh:

• Rs. 200
• Rs. 50
• Rs. 100
• Rs. 150

Q.16:- What is the fee to paid to the Registrar for filing of the Statement of Account and Solvency, where the contribution exceeds Rs 5 lakh but does not exceed Rs l0 lakh:

• Rs. 200.
• Rs. 100.
• Rs 50.
• Rs. 150.

Q.17:- What is the fee to paid to the Registrar for filing of the Statement of Account and Solvency, where the contribution exceeds Rs 10 lakh:

• Rs. 200.
• Rs. 150.
• Rs. 100.
• Rs 50.

Q.18:- Who shall fix the remuneration of the auditor:

• The designated partners shall fix the remuneration
• As per the procedure laid down in the LLP Agreement.
• The Registrar may fix the remuneration
• Both A and B are correct.

Q.19:- LLP shall file its Annual Return in which form:

• Form 12
• Form 11
• Form 10
• Form 9

Q.20:- What is the fee for inspection of documents:

• Rs 200.
• Rs 150.
• Rs 100.
• Rs 50.

Q.21:- What is the fee for obtaining certified copy:

• Rs. 3 per page or fractional part thereof
• Rs. 5 per page or fractional part thereof
• Rs. 2 per page or fractional part thereof
• Rs. 1 per page or fractional part thereof

Q.22:- What is the fee for filing, registering or recording notice of appointment, cessation, change in name, address, designation of a partner or designated partner, intimation of Designated Partner Identification Number and consent to become a partner or designated partner in Form 4:

• Rs 50
• Rs 100
• Rs. 150
• Rs. 200

Q.23:- Where an auditor is unwilling to be re• appointed, he shall give a notice in writing to that effect at the LLP’s registered office before the end of the time allowed for appointing the new auditor, along with the statement of circumstances connected with his ceasing to hold office:

• not less than 28 days
• not less than 21 days
• not less than 14 days
• not less than 07 days

Q.24:- Who can remove the auditors from his office:

• The partners of the LLP may remove an auditor form office at any time by following the procedure as laid down in the LLP Agreement.
• Where the LLP Agreement does not provide for the removal of an auditor, consent of all the partners shall be required for removal of the auditor form his office
• The Registrar.
• Both A and B are correct

Q.25:- The designated partners may appoint auditor(s), but if the designated partners fails to appoint the auditor(s), then who will make the appointment of the auditor(s):

• The Registrar of Co-operative Societies
• The other partners of the LLP
• The Registrar of Firms
• The Registrar

Q.26:- What is the fee to paid to the Registrar for filing of the Statement of Account and Solvency, where the contribution exceeds Rs 1 lakh but does not exceed Rs 5 lakh:

• Rs. 200.
• Rs. 150.
• Rs. 100.
• Rs 50.

Q.27:- An auditor or auditors of an LLP shall hold office in accordance with the terms of his or their appointment and shall continue to hold such office till the period:

• They are re-appointed
• Only for one financial year
• The new auditors are appointed
• Options A and C are correct.

Q.28:- The audit of accounts of every LLP is not''' compulsory if its:

• Turnover does not exceed in any financial year, Rs 40 lakh or whose contribution does not exceed Rs 25 lakh
• Turnover does not exceed, in any financial year, Rs 30 lakh, or whose contribution does not exceed Rs 25 lakh
• Turnover does not exceed, in any financial year, Rs 20 lakh, or whose contribution does not exceed Rs 25 lakh
• Turnover does not exceed, in any financial year, Rs 10 lakh, or whose contribution does not exceed Rs 25 lakh

Q.29:- What are the penal provisions for the LLP, if any LLP fails to comply with the provisions of Section 35 which deals with the filing of the Annual Return with the Registrar:

• The LLP shall be punishable with fine which shall not be less than Rs 10000 but which may extend to Rs 5 lakh.
• The LLP shall be punishable with fine which shall not be less than Rs 15000 but which may extend to Rs 5 lakh.
• The LLP shall be punishable with fine which shall not be less than Rs 20000 but which may extend to Rs 5 lakh.
• The LLP shall be punishable with fine which shall not be less than Rs 25000 but which may extend to Rs 5 lakh.

Q.30:- What is the periodicity of preparing the Statement of Account and Solvency by the LLP:

• Within a period of three months from the end of each financial year.
• Within a period of nine months from the end of each financial year.
• Within a period of twelve months from the end of each financial year.
• Within a period of six months from the end of each financial year.

Q.31:- What are the penal provisions for LLP, if any LLP fails to comply with the provisions of Section 34 (which relates to the maintenance of books of account, other records and audit, etc):

• The LLP shall be punishable with fine which shall not be less than Rs 15000 but which may extend to Rs 5 lacs.
• The LLP shall be punishable with fine which shall not be less than Rs 25000 but which may extend to Rs 5 lacs.
• The LLP shall be punishable with fine which shall not be less than Rs 20000 but which may extend to Rs 5 lacs.
• The LLP shall be punishable with fine which shall not be less than Rs 10000 but which may extend to Rs 5 lacs.

Q.32:- What are the penal provisions for designated partners, if any LLP fails to comply with the provisions of Section 34 (which relates to the maintenance of books of account, other records and audit, etc):

• Every designated partner of such LLP shall be punishable with fine which shall not be less than Rs 15000 but which may extend to Rs 1 lakh.
• Every designated partner of such LLP shall be punishable with fine which shall not be less than Rs 10000 but which may extend to Rs 1 lakh.
• Every designated partner of such LLP shall be punishable with fine which shall not be less than Rs 5000 but which may extend to Rs 1 lakh.
• Every designated partner of such LLP shall be punishable with fine which shall not be less than Rs 1000 but which may extend to Rs 1 lakh.

Q.33:- What are the penal provisions for the designated partners of LLP, if any LLP fails to comply with the provisions of Section 35 which deals with the filing of the Annual Return with the Registrar:

• The designated partners of the LLP shall be punishable with fine which shall not be less than Rs 1000 but which may extend to Rs 1 lakh.
• The designated partners of the LLP shall be punishable with fine which shall not be less than Rs 5000 but which may extend to Rs 1 lakh.
• The designated partners of the LLP shall be punishable with fine which shall not be less than Rs 10000 but which may extend to Rs 1 lakh.
• The designated partners of the LLP shall be punishable with fine which shall not be less than Rs 15000 but which may extend to Rs 1 lakh.

Q.34:- What is the penalty for the false statement made by the LLP in any return, statement of other documents required by or for the purposes of any of the provisions of the LLP Act Y.

• The person concerned shall be punishable with imprisonment for a term which may extend to 1 years and shall also be liable to fin which extend to Rs 5 lakh but which shall not be less than Rs 1 lakh.
• The person concerned shall be punishable with imprisonment for a term which may extend to 2 years and shall also be liable to fin which extend to Rs 5 lakh but which shall not be less than Rs 1 lakh.
• The person concerned shall be punishable with imprisonment for a term which may extend to 3 years and shall also be liable to fin which extend to Rs 5 lakh but which shall not be less than Rs 1 lakh.
• The person concerned shall be punishable with imprisonment for a term which may extend to 4 years and shall also be liable to fin which extend to Rs 5 lakh but which shall not be less than Rs 1 lakh.

Q.35:- What is the penal provision, if any person who, without lawful excuse, {fails to comply with any summons or requisition of the Registrar under section 38, which deals with the Powers of Registrar to obtain information:

• The person concerned shall be punishable with fines which shall not be less Rs 2000 but which extend to Rs 25000.
• The person concerned shall be punishable with fines which shall not be less Rs 1500 but which extend to Rs 25000.
• The person concerned shall be punishable with fines which shall not be less Rs 1000 but which extend to Rs 25000.
• The person concerned shall be punishable with fines which shall not be less Rs 500 but which extend to Rs 25000.

Q.36:- An individual or body corporate cannot be a partner in a limited liability partnership.

• Only Body corporate can form LLP
• Only Individual can form LLP
• The statement is wrong.
• The statement is correct.

Q.37:- What is LLP IN:

• It is actually CIN.
• Every LLP registered with the Registrar shall be assigned a LLP identification number in one consecutive series and is called as LLPIN.
• It is just like DPIN.
• It is just like DIN

Q.38:- Every limited liability partnership shall have atleast two designated partners who are individuals and at least one of them shall be:

• An Indian resident
• A person of foreign national
• A resident inIndia
• A person having Indian Passport

Q.39:- In terms of section 23 (2) of the LLP Act, 2008, every LLP shall file information with regard to the LLP agreement in the prescribed form, with the Registrar within thirty days of the date of information. What is the prescribed Form No.:

• Form No.2
• Form No.3
• Form No. 4
• Form No. 1

Q.40:- The Court or Tribunal may reduce or waive penalty leviable against any partner or employee of LLP if it is satisfied that:

• When any information given by any partner or employee(whether or not during investigation) leads to LLP or any partner or employee of such LLP being convicted under this Act or any other Act.
• Such partner or employee of a LLP has provided useful information during investigation of such LLP.
• Both the options A and B are correct
• None of the above.

Q.41:- Every partner of a limited liability partnership is, for the purpose of the business of the limited liability partnership:

• The agent of the limited liability partnership, but not of other partners.
• The agent of the limited liability partnership and agent of other partners.
• The agent as well as principal of the limited liability partnership.
• None of the above.

Q.42:- 30. The annual return of an LLP having turnover up to five crore) rupees during the corresponding financial year or contribution, up to (fifty lakh rupees shall be accompanied with a certificate from a designated partner, other than the signatory to the annual return, to the effect that annual return contains true and correct information. In all other cases, the annual return shall be accompanied with a certificate from a to the effect that he has verified the particulars from the books and records of the limited liability partnership and found them to be true and correct:

• Company Secretary in Practice
• Cost Accountant in Practice
• Advocate
• Chartered Accountant in Practice

Q.43:- In terms of section 25(2), where a person becomes or cases to be a partner or where there is any change in the name or address of a partner, the LLP shall file with the Registrar a notice in:

• Form No.5
• Form No. 6
• Form No.3
• Form No.4

Q.44:- If the LLP contravenes the provisions of section 24 (2), which relates to the information to the Registrar about any changes of cessation of partner and change in the name and address of the partner, the LLP and every designated partner of the LLP shall be punishable with fine:

• The fine shall not be less than two thousand rupees but which may extend to twenty-five thousand rupees.
• The fine shall not be less than four thousand rupees but which may extend to twenty- five thousand rupees.
• The fine shall not be less than one thousand rupees but which may extend to twenty-five thousand rupees.
• The fine shall not be less than three thousand rupees but which may extend to twenty-five thousand rupees.

Q.45:- A person shall not be capable of being appointed as a designated partner of a LLP, if he:

• Suspends, or has at any time within the preceding five years suspended payment to his creditor and has not at any time within the preceding five years made, a composition with them
• Has been convicted by a Court for any offence involving moral turpitude and sentenced in respect thereof toe imprisonment for not less than six month or has been convicted by a Court for an offence involving section 30 of the Act.
• Has at any time within the preceding five years been adjudged insolvent.
• All of the above.

Q.46:- A limited liability partnership:

• Shall not have perpetual succession.
• Shall have its operations only for 5 years.
• Shall have perpetual succession.
• Shall have its operations for a limited period

Q.47:- How many partners are required to form LLP:

• It shall have at least more than two partners.
• It shall have at least more than seven partners.
• It shall have at least two partners.
• It shall have least seven partners

Q.48:- In terms of section 7 (3), an individual shall give his prior consent to act as a designated partner of the limited liability partnership in the prescribed form, which is:

• Form 9
• Form 8
• Form 11
• Form 10

Q.49:- What is the filing fee for LLP in case where the contribution of LLP exceed Rs Ten lakh:

• Rs.150.
• Rs. 200
• Rs. 50.
• Rs.100.

Q.50:- When a person shall cease to be a partner of a limited liability partnership:

• If he is declared to be of unsound mind by a competent court;
• If he has applied to be adjudged as an , insolvent or declared as an insolvent
• On his death or dissolution of the limited liability partnership
• All of the above.