Dear Aspirants, English Language plays a crucial role in Banking and all other competitive exams. To enrich your preparation, here we have provided New Pattern English Questions for IBPS Clerk Mains. Candidates those who are going to appear in IBPS Clerk Mains can practice these questions daily and make your preparation effective.
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Direction (1-10): Read the passage carefully and answer the following questions.
A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The term partnership is used to mean a business structure wherein two or more individuals, come together for undertaking a lawful business and have agreed to share the profits and losses arising from it. The management and operation of the business is performed either by all the partners or any of them, acting for all the partners.
The Partnership is the relation which subsists between individuals, who have decided to pool their money, skill and resources in business, to share profits and losses, in an agreed ratio. The members of a partnership, are jointly known as the partnership firm and severally known as partners. In India, it is governed by the Indian Partnership Act, 1932 and is formed as per the provisions of the act.
The Act explains that in partnership there must be at least two persons. Partnership is the outcome of a contract, so there must be two or more persons. The persons becoming partners must be competent to enter into a contract. Minors cannot form a partnership firm as they are incompetent to enter into a contract.
According to section 11 of Contract Act, there is no maximum limit on partners in Partnership Act, but according to Companies Act, the maximum number of partners engaged in a banking business cannot exceed ten and twenty in any other business.
The person joining the partnership enters into a contract for running the business. According to Partnership Act, the relation of partnership arises from contract and not from status. The contract may be oral or written but in practice written agreement is made because it helps to settle the disputes if they arise later on.
The purpose of the partnership business should be to make profits and distribute them among partners. If a work is done for charity purposes or to serve the society it will not be called partnership. So the motive of the business should be to earn profits. It does not mean that there will not be losses but the motive should be earning of profits.
Partnership can only be for some kind of business. The term ‘Business’ includes any trade, profession or occupation. Business means all activities concerning production, distribution and rendering of services for the purpose of earning profits. If the work is related to social service, we do not call it a business and hence no partnership.
A partnership, as different from a corporation, is not a separate entity from the individual owners. A partnership is similar to a sole proprietor or independent contractor business because in both of these businesses the business isn’t separate from the owners, for liability purposes.
Partners are of different kinds in a business partnership.
A person who takes active interest in the conduct and management of the business of the firm is known as active or managing partner. He carries on business on behalf of the other partners. If he wants to retire, he has to give a public notice of his retirement, otherwise he will continue to be liable for the acts of the firm.
A dormant partner does not take part in the management of the business. Such a partner only contributes to the share capital of the firm, is bound by the activities of other partners, and shares the profits and losses of the business. He is also known as sleeping partner and unlike an active partner, he is not required to give a public notice of his retirement.
A nominal partner is one who does not have any real interest in the business but lends his name to the firm, without any capital contributions, and doesn’t share the profits of the business. The nominal partner is also known as ostensible partner.
When a partner agrees with the others that he would only share the profits of the firm and would not be liable for its losses, he is in own as partner in profits only.
A minor cannot be a partner of a firm according to the Contract Act. However, a partner can be admitted to the benefits of a partnership if all partner gives their consent for the same.
In a partnership, each person contributes something to the business — such as ideas, money, property, or some combination of these. Management rights, profit share, and personal liability will vary depending on which of the modern partnership forms the business takes.
A general partnership is a partnership with only general partners. Each general partner takes part in the management of the business and also takes responsibility for the liabilities of the business. If one partner is sued, all partners are held liable.
A limited partnership includes both general partners and limited partners. A limited partner does not participate in the day-to-day management of the partnership and his/her liability is limited.
A limited liability partnership (LLP) is different from a limited partnership or a general partnership. LLP combines characteristics of partnerships and corporations. As in a corporation, all partners in LLP have limited liability, from errors, omissions, negligence, incompetence, or malpractice committed by other partners or by employees.
A partnership is a business owned by several individuals who have signed a partnership agreement and have invested in the business. There are various types of partnerships, but all pay income tax in the same way.
A partnership is a business owned by several individuals who have signed a partnership agreement and have invested in the business. There are various types of partnerships, but all pay income tax in the same way. Income tax at a flat rate of 30% is levied on partnership firms
The share of profit which partners receive from partnership firm is not taxable in the hands of the partners. However partners’ interest income from capital in account and the remuneration or commission they receive from the company are taxable in the hands of the partners.
1) According to the passage, which of the following partners does not share the profit of the firm?
a) dormant partner
b) managing partner
c) nominal partner
d) minor partner
e) holding partner
2) According to the passage, which of the following type of partnerships includes the features of corporations?
a) limited partnership
b) voluntary partnership
c) joint partnership
d) general partnership
e) limited liability partnership
3) According to the passage, which of the followings is not the characteristic of the partnership firm?
a) earning of profit
b) contractual relationship
c) existence of business
d) separate legal entity from its partners
e) association of two or more persons
4) According to the passage, which of the followings is not taxable in the hands of the partners of the partnership firms?
a) remuneration
b) share of profit
c) bonus amount
d) interest
e) commission
5) Which of the following statements is true in the context of the passage?
a) A nominal partner does not take active part in the management of the business.
b) In general partnership if one partner is sued, all partners are held liable.
c) The purpose of the partnership business should be to make profits and distribute them among partners.
d) None of the above
e) All are true
6) Find the incorrect statement on the basis of the given passage.
a) A general partnership is a partnership with only general partners.
b) A limited partnership includes only limited partners.
c) If the active partner wants to retire, he has to give a public notice of his retirement
d) A minor cannot be a partner of a firm according to the Contract Act.
e) All are correct
7) Choose the word which as same meaning as the word ostensible
a) factual
b) unfeigned
c) professed
d) existent
e) valid
8) Choose the word which as same meaning as the word competent
a) inept
b) clumsy
c) adroit
d) bungling
e) amateurish
9) Choose the word which as opposite meaning as the word dormant
a) resting
b) quiescent
c) latent
d) hidden
e) dynamic
10) Choose the word which as opposite meaning as the word advance
a) evolve
b) regress
c) ripen
d) proliferate
e) unfurl
Answers:
Directions (1-10):
1) Answer: c)
it is given in the passage that nominal partner is one who does not have any real interest in the business but lends his name to the firm, without any capital contributions, and doesn’t share the profits of the business.
2) Answer: e)
It is clearly mentioned in the passage that a limited liability partnership (LLP) is different from a limited partnership or a general partnership. LLP combines characteristics of partnerships and corporations.
3) Answer: d)
It is mentioned in the passage that a partnership firm, as different from a corporation, is not a separate entity from the individual owners. A partnership is similar to a sole proprietor or independent contractor business.
4) Answer: b)
It is mentioned in the passage that the share of profit which partners receive from partnership firm is not taxable in the hands of the partners. However partners’ interest income from capital in account and the remuneration or commission they receive from the company is taxable in the hands of the partners.
5) Answer:b)
According to the passage true statement is “In general partnership if one partner is sued, all partners are held liable.”
6) Answer:b)
It is given in the passage that a limited partnership includes both general partners and limited partners. A limited partner does not participate in the day-to-day management of the partnership and his/her liability is limited.
7) Answer: c)
The meaning of “ostensible” is “supposed / perceived /professed”.
8) Answer:c)
The meaning of “competent” is “capable / expert / adroit”.
9) Answer: e)
The meaning of “dormant” is “inactive / latent/ sleeping” and its opposite is “functional / dynamic”.
10) Answer: b)
The meaning of “advance” is “make or cause to make progress / improve or develop” and its opposite is “regress / move back/ lose headway”.
Daily Practice Test Schedule | Good Luck
| Topic | Daily Publishing Time |
| Daily News Papers & Editorials | 8.00 AM |
| Current Affairs Quiz | 9.00 AM |
| Current Affairs Quiz (Hindi) | 9.30 AM |
| NIACL AO Prelims – Reasoning | 10.00 AM |
| NIACL AO Prelims – Reasoning (Hindi) | 10.30 AM |
| NIACL AO Prelims – Quantitative Aptitude | 11.00 AM |
| NIACL AO Prelims – Quantitative Aptitude (Hindi) | 11.30 AM |
| Vocabulary (Based on The Hindu) | 12.00 PM |
| NIACL AO Prelims – English Language | 1.00 PM |
| SSC Practice Questions (Reasoning/Quantitative aptitude) | 2.00 PM |
| IBPS Clerk – GK Questions | 3.00 PM |
| SSC Practice Questions (English/General Knowledge) | 4.00 PM |
| Daily Current Affairs Updates | 5.00 PM |
| SBI PO/IBPS Clerk Mains – Reasoning | 6.00 PM |
| SBI PO/IBPS Clerk Mains – Quantitative Aptitude | 7.00 PM |
| SBI PO/IBPS Clerk Mains – English Language | 8.00 PM |
This post was last modified on January 8, 2019 3:57 pm