MCQ on LLP

1. Which of the following is true about a Limited Liability Partnership?

a. A Limited Liability Partnership is not a distinct entity from its partners
b. A Limited Liability Partnership is a legal entity separate from its partners
c. A Limited Liability Partnership is a body corporate
d. Both b and c are correct
Answer: d

2. Which of the following is true about the number of designated partners required in a
Limited Liability Partnership?
a. A Limited Liability Partnership can have at least two designated partners
b. A Limited Liability Partnership can have at least three designated partners
c. A Limited Liability Partnership can have at least seven designated partners
d. A Limited Liability Partnership can have at least four designated partners
Answer: a

3. What is the exact time limit under which a Limited Liability Partnership must file its
annual return with the registrar?
a. A Limited Liability Partnership must file its annual return within 30 days from
the closing of its financial year
b. A Limited Liability Partnership must file its annual return within 45 days from
the closing of its financial year
c. A Limited Liability Partnership must file its annual return within 15 days from
the closing of its financial year
d. A Limited Liability Partnership must file its annual return within 60 days from
the close of its financial year
Answer: d

4. Every Limited Liability Partnership must maintain its books of accounts diligently.
Those books of accounts should maintain _________.
a. Particulars of the receipts and expenditures at the Limited Liability Partnership
with the details of those transactions
b. An inventory of the cost of goods purchased, work in progress, inventories,
finished goods as well as the cost of goods sold
c. A complete record of the assets and liabilities of the Limited Liability
Partnership
d. All of the above
Answer: d

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 5. Which of the following is the designated place where a Limited Liability Partnership
should maintain its accounts?
a. A Limited Liability Partnership should maintain its accounts at the branch office
b. A Limited Liability Partnership should maintain its accounts at the corporate
office
c. A Limited Liability Partnership should maintain its accounts at the head office
d. A Limited Liability Partnership should maintain its accounts at the registered
office
Answer: d

6. On what basis should a Limited Liability Partnership maintain its books of accounts for
every year of their existence?
a. A Limited Liability Partnership should maintain its books of accounts on the
accrual basis
b. A Limited Liability Partnership should maintain its books of accounts on the
cash basis
c. A Limited Liability Partnership should maintain its books of accounts based on
the double-entry system of accounting
d. All of the above
Answer: d

7. Which among the following parties in a Limited Liability Partnership should sign the
Statement of Account and Solvency?
a. It should be signed by the designated partners authorised on behalf of the
Limited Liability Partnership
b. It should be signed by one partner authorised on behalf of the Limited Liability
Partnership
c. It should be signed by all partners of the Limited Liability Partnership
d. It should be signed by at least two partners authorised on behalf of the Limited
Liability Partnership
Answer: a

8. The Limited Liability Partnership should file its statement of account and solvency with
which of the following parties?
a. The Limited Liability Partnership should file its statement of account and
solvency with the registrar of firms
b. The Limited Liability Partnership should file its statement of account and
solvency with the registrar
c. The Limited Liability Partnership should file its statement of account and
solvency with the registrar of cooperative societies
d. None of the above

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 Answer: b

9. Which of the following statements is true about the books of accounts for a Limited
Liability Partnership?
a. The books of accounts for a Limited Liability Partnership must be preserved for
four years
b. The books of accounts for a Limited Liability Partnership must be preserved for
two years
c. The books of accounts for a Limited Liability Partnership must be preserved for
eight years
d. The books of accounts for a Limited Liability Partnership must be preserved for
six years
Answer: c

10. Which of the following parties in a Limited Liability Partnership is responsible for fixing
the auditor’s remuneration?
a. The registrar may fix the auditor’s remuneration
b. The designated partners in a Limited Liability Partnership may fix the auditor’s
remuneration
c. The auditor’s remuneration gets decided as per the procedure laid down in a
Limited Liability Partnership agreement
d. Both b and c are correct
Answer: d

11. Which of the following parties in a Limited Liability Partnership can remove the
auditor from their office?

a. The registrar can remove the auditor

b. The partners can remove the auditor following the guidelines present in the
Limited Liability Partnership agreement
c. If the Limited Liability Partnership agreement has no provision for removing the
auditor, the consent of all partners is necessary to relieve the auditor from their
duties
d. Both b and c are correct
Answer: d

12. Which of the following parties can appoint an auditor if the designated partners in a
Limited Liability Partnership fail to select one?
a. The other partners in the Limited Liability Partnership can appoint an auditor
b. The registrar of the cooperative societies can appoint an auditor
c. The registrar of firms can appoint an auditor
d. The registrar can appoint an auditor
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 Answer: a

13. Which of the following statements is true about the auditor in the Limited Liability
Partnership?
a. An auditor in a Limited Liability Partnership shall continue to hold office as per
the terms of their appointment till they are re-appointed
b. An auditor in a Limited Liability Partnership shall continue to hold office as per
the terms of their appointment for one financial year
c. An auditor in a Limited Liability Partnership shall continue to hold office as per
the terms of their appointment till the new auditors are appointed
d. Both a and c are correct
Answer: d

14. The statement of account and solvency in a Limited Liability Partnership should be
prepared __________.
a. Within four months from the end of the financial year
b. Within six months from the end of the financial year
c. Within three months from the end of the financial year
d. Within two months from the end of the financial year
Answer: b

15. The Limited Liability Partnership Act, 2008 came into force on ______.
a. 21st March 2009
b. 23rd March 2009
c. 31st March 2009
d. 30th March 2009
Answer: c

16. A limited liability partnership is:

a. Not a separate entity from that of its partners

b. A legal entity separate from that of its partners
c. A body corporate
d. Only B and C are correct

Correct Option: D

17. A LLP shall be governed by the provisions of:

a. The Companies Act, 2013

b. The Limited Liability Partnership Act, 2008

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 c. The Co-operative Societies Act, 1912
d. The Indian Partnership Act, 1932

Correct Option: B

18. Whether a HUF can become partner in LLP:

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

Correct Option: B

19. How many designated partners are required in LLP:

a. At least two designated partners

b. Seven designated partners
c. Two designated partners
d. At least seven designated partners

Correct Option: A

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

a. Form 8
b. Form 7
c. Form 6
d. Form 5

Correct Option: A

21. Who is the authority to grant compounding of offence under the LLP Act:

a. The Registrar of Firms

b. The Central Government
c. The Registrar
d. The Registrar of Co-operatives

Correct Option: B

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

a. Within 30 days of closure of its financial year.

b. Within 45 days of closure of its financial year.

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 c. Within 60 days of closure of its financial year.
d. Within 15 days of closure of its financial year.

Correct Option: C

23. Every LLP shall keep books of account, which shall contain:

a. Statement of cost of goods purchased inventories, work-in-progress, finished goods and

cost of goods sold.
b. A record of the assets and liabilities of the LLP.
c. 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.
d. All of the above.

Correct Option: D

24. At which place the LLP shall maintain books of accounts:

a. At its Branch Office

b. At its Corporate Office
c. At its Head Office
d. At its Registered Office

Correct Option: D

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

a. Accrual basis
b. Double entry system of accounting
c. Cash basis
d. All of the above.

Correct Option: D

26. Who shall sign the Statement of Account and Solvency prepared by the LLP:

a. By any one partner, authorised in this behalf

b. By at least two partners, authorised in this behalf
c. By all the partners
d. By the designated partners

Correct Option: D

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

a. The Registrar of Co-op Societies

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 b. Need not to file.
c. The Registrar
d. The Registrar of Firms

Correct Option: C

28. 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:

a. Yes, it can be inspected by any of the partners of the LLP

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

Correct Option: D

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

a. Eight Years
b. Six Years
c. Four years
d. Two years

Correct Option: A

30. 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:

a. Rs. 200
b. Rs. 50
c. Rs. 100
d. Rs. 150

Correct Option: B

31. 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:

a. Rs. 200.
b. Rs. 100.
c. Rs 50.
d. Rs. 150.

Correct Option: D

MCQ on LLP Page 7 of 23

 32. 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:

a. Rs. 200.
b. Rs. 150.
c. Rs. 100.
d. Rs 50.

Correct Option: a

33. Who shall fix the remuneration of the auditor:

a. The designated partners shall fix the remuneration

b. As per the procedure laid down in the LLP Agreement.
c. The Registrar may fix the remuneration
d. Both A and B are correct.

Correct Option: D

34. LLP shall file its Annual Return in which form:

a. Form 12
b. Form 11
c. Form 10
d. Form 9

Correct Option: B

35. What is the fee for inspection of documents:

a. Rs 200.
b. Rs 150.
c. Rs 100.
d. Rs 50.

Correct Option: D

36. What is the fee for obtaining certified copy:

a. Rs. 3 per page or fractional part thereof

b. Rs. 5 per page or fractional part thereof
c. Rs. 2 per page or fractional part thereof
d. Rs. 1 per page or fractional part thereof

Correct Option: B

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 37. 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:

a. Rs 50
b. Rs 100
c. Rs. 150
d. Rs. 200

Correct Option: A

38. 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:

a. not less than 28 days

b. not less than 21 days
c. not less than 14 days
d. not less than 07 days

Correct Option: C

39. Who can remove the auditors from his office:

a. 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.
b. 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
c. The Registrar.
d. Both A and B are correct

Correct Option: D

40. 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):

a. The Registrar of Co-operative Societies

b. The other partners of the LLP
c. The Registrar of Firms
d. The Registrar

Correct Option: B

41. 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:

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 a. Rs. 200.
b. Rs. 150.
c. Rs. 100.
d. Rs 50.

Correct Option: C

42. 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:

a. They are re-appointed

b. Only for one financial year
c. The new auditors are appointed
d. Options A and C are correct.

Correct Option: D

43. The audit of accounts of every LLP is not''' compulsory if its:

a. Turnover does not exceed in any financial year, Rs 40 lakh or whose contribution does
not exceed Rs 25 lakh
b. Turnover does not exceed, in any financial year, Rs 30 lakh, or whose contribution does
not exceed Rs 25 lakh
c. Turnover does not exceed, in any financial year, Rs 20 lakh, or whose contribution does
not exceed Rs 25 lakh
d. Turnover does not exceed, in any financial year, Rs 10 lakh, or whose contribution does
not exceed Rs 25 lakh

Correct Option: A

44. 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:

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

Correct Option: D

45. What is the periodicity of preparing the Statement of Account and Solvency by the
LLP:
MCQ on LLP Page 10 of 23
 a. Within a period of three months from the end of each financial year.
b. Within a period of nine months from the end of each financial year.
c. Within a period of twelve months from the end of each financial year.
d. Within a period of six months from the end of each financial year.

Correct Option: D

46. 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):

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

Correct Option: B

47. 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):

a. 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.
b. 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.
c. 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.
d. 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.

Correct Option: B

48. 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:

a. 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.
b. 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.
c. 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.
MCQ on LLP Page 11 of 23
 d. 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.

Correct Option: C

49. 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.

a. 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.
b. 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.
c. 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.
d. 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.

Correct Option: B

50. 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:

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

Correct Option: A

51. An individual or body corporate cannot be a partner in a limited liability partnership.

a. Only Body corporate can form LLP

b. Only Individual can form LLP
c. The statement is wrong.
d. The statement is correct.

Correct Option: C
MCQ on LLP Page 12 of 23
 52. What is LLP IN:

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

Correct Option: B

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

a. An Indian resident
b. A person of foreign national
c. A resident inIndia
d. A person having Indian Passport

Correct Option: C

54. 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.:

a. Form No.2
b. Form No.3
c. Form No. 4
d. Form No. 1

Correct Option: B

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

a. 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.
b. Such partner or employee of a LLP has provided useful information during investigation
of such LLP.
c. Both the options A and B are correct
d. None of the above.

Correct Option: C

56. Every partner of a limited liability partnership is, for the purpose of the business of
the limited liability partnership:

MCQ on LLP Page 13 of 23

 a. The agent of the limited liability partnership, but not of other partners.
b. The agent of the limited liability partnership and agent of other partners.
c. The agent as well as principal of the limited liability partnership.
d. None of the above.

Correct Option: A

57. 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:

a. Company Secretary in Practice

b. Cost Accountant in Practice
c. Advocate
d. Chartered Accountant in Practice

Correct Option: A

58. 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:

a. Form No.5
b. Form No. 6
c. Form No.3
d. Form No.4

Correct Option: D

59. 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:

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

MCQ on LLP Page 14 of 23

Correct Option: A

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

a. 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
b. 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.
c. Has at any time within the preceding five years been adjudged insolvent.
d. All of the above.

Correct Option: D

61. A limited liability partnership:

a. Shall not have perpetual succession.

b. Shall have its operations only for 5 years.
c. Shall have perpetual succession.
d. Shall have its operations for a limited period

Correct Option: C

62. How many partners are required to form LLP:

a. It shall have at least more than two partners.

b. It shall have at least more than seven partners.
c. It shall have at least two partners.
d. It shall have least seven partners

Correct Option: C

63. 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:

a. Form 9
b. Form 8
c. Form 11
d. Form 10

Correct Option: A

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

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 a. Rs.150.
b. Rs. 200
c. Rs. 50.
d. Rs.100.

Correct Option: B

65. When a person shall cease to be a partner of a limited liability partnership:

a. If he is declared to be of unsound mind by a competent court;

b. If he has applied to be adjudged as an , insolvent or declared as an insolvent
c. On his death or dissolution of the limited liability partnership
d. All of the above.

Correct Option: D

66. Ministry of Corporate Affairs enforced the LLP Act, with effect from-

1. 31st March, 2008

2. 1st April 2008
3. 31st March, 2009
4. 1st April 2009
Answer: 3

67. Which of the following cannot be converted into LLP?

1. Partnership firm
2. Private company
3. Listed company
4. unlisted company
Answer: 3

68. The approved name of LLP shall be valid for a period of ___ from the date of
approval:

1. 1 Month
2. 2 Months
3. 3 months
4. 6 months
Answer: 3

69. Name of the Limited Liability Partnership shall be ended by:

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 1. Limited
2. Limited Liability partnership or LLP
3. Private Limited
4. OPC
Answer: 2

70. Which one of the following statements about limited liability partnerships (LLPs) is
incorrect?

1. An LLP has a legal personality separate from that of its members.

2. The liability of each partner in an LLP is limited.
3. Members of an LLP are taxed as partners.
4. A listed company can convert to an LLP.
Answer: 4

71. For the purpose of LLP, Resident in India means:

1. Person who has stayed in India for a period of not less than 182 days during the
current year.
2. Person who has stayed in India for a period of not less than 180 days during the
immediately preceding one year.
3. Person who has stayed in India for a period of not less than 181 days during the
immediately preceding one year.
4. Person who has stayed in India for a period of not less than 182 days during the
immediately preceding one year.
Answer: 4

72. Any change in the partners of a limited liability partnership:

a. May be made only with the permission of the Registrar.

b. Shall not affect the existence, rights or liabilities of the limited liability partnership.
c. Shall affect its existence.
d. Shall affect the rights or liabilities of the limited liability partnership.

Correct Option: B

73. What is the filing fee for LLP in case where the contribution of LLP exceed Rs Five lakh
but does not exceeds Rs Ten lakh:

a. Rs.150.
b. Rs. 200
c. Rs.100.

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 d. Rs. 50.

Correct Option: A

74. A limited liability partnership shall, where a person becomes or ceases to be a

partner and where there is any change in the name and address of the partner, file a
notice with the Registrar:

a. Within thirty days from the date he becomes or ceases to be a partner.

b. Within sixty days from the date he becomes or ceases to be a partner.
c. Within fifteen days from the date he becomes or ceases to be a partner.
d. Within forty five days from the date he becomes or ceases to be a partner.

Correct Option: A

75. To what extent is the liability of a partner in LLP:

a. A partner is personally liable, indirectly for an obligation referred to in sub-section (3) of

section 27 solely by reason of being a partner of the limited liability partnership.
b. A partner is personally liable, directly for an obligation referred to in sub-section (3) of
section 27 solely by reason of being a partner of the limited liability partnership.
c. A partner is not personally liable, directly or indirectly for an obligation referred to in
sub- section(3) of section will solely by reason of being a partner of the limited liability
partnership.
d. None of the above.

Correct Option: B

76. Every partner shall inform the limited liability partnership of any change in his name
or address within a period of fifteen days of such change. If any partner contravenes
this provisions such partner shallbe punishable with fine:

a. Which shall not be less than two thousand rupees but which may extend to twenty-five
thousand rupees.
b. Which shall not be less than one thousand rupees but which may extend to twenty-five
thousand rupees.
c. Which shall not be less than four thousand rupees but which may extend to twenty-five
thousand rupees.
d. Which shall not be less than three thousand rupees but which may extend to twenty-five
thousand rupees.

Correct Option: A

77. In terms of section 25 (2), every partner shall intimate change in his name or address
to the LLP in a prescribed form, which is:

a. Form No. 5

MCQ on LLP Page 18 of 23

 b. Form No. 6
c. Form No. 6
d. Form No.3

Correct Option: B

78. Every partner shall inform limited liability partnership of any change on his name or
address:

a. Within a period of fifteen days of such change.

b. Within a period of twenty eight days of such change.
c. Within a period of seven days of such change.
d. Within a period of twenty one days of such change.

Correct Option: A

79. In the absence of agreement as to any matter, the mutual rights and duties of the
partners and the mutual rights and duties of the limited liability partnership and the
partners shall be determined by the provisions relating to that matter, which are set
out in:

a. The Second Schedule.

b. The Fourth Schedule.
c. The First Schedule
d. The Third Schedule.

Correct Option: C

80. In terms of section 7 (4) the particulars of an individual who has given his consent to
act as designated partner shall be filed in:

a. Form 5
b. D. Form 6
c. Form 3
d. Form 4

Correct Option: D

81. What is the filing fee for LLP in case where the contribution of LLP does not exceed
Rs One lakh:

a. Rs.100.
b. Rs.200.
c. Rs. 50.
d. Rs.150.

Correct Option: C

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 82. Who shall be treated as partners of LLP:

a. Any other person may become a partner of the limited liability partnership by and in
accordance with the limited liability partnership agreement.
b. The persons who subscribed their names to the incorporation document at time of the
incorporation of a limited liability partnership.
c. Both A and B are correct
d. None of the above.

Correct Option: D

83. A person may cease to be a partner of a limited liability partnershipin accordance

with an agreement with the other partners or, in the absence of agreement with the
other partners as to cessation of being a partner, by giving a notice in writing of___ to
the other partners of his intention to resign as partner:

a. not less than thirty days

b. not less than forty five days
c. not less than sixty days
d. not less than fifteen days

Correct Option: A

84. What is the registration fee of a LLP whose contribution exceeds Rs One lakh but
does not exceeds Rs Five lakh:

a. Rs.1000
b. Rs.3000
c. Rs.2000
d. Rs. 4000.

Correct Option: C

85. Section 7 (1) of the LLP Act 2008 provides that every limited liability partnership shall
have at least two designated partners who are individuals and at least one of them
shall be a resident in India. If any LLP contravenes the said the LLP and its every
partner shall be punishable with fine. What is that punishment:

a. The LLP and its every partner shall be punishable with fine which shall not be less than
ten thousand rupees but which may extend to five lakh rupees.
b. The LLP and its every partner shall be punishable with fine which shall not be less than
five thousand rupees but which may extend to five lakh rupees.
c. The LLP and its every partner shall be punishable with fine which shall not be less than
twenty thousand rupees but which may extend to five lakh rupees.
d. The LLP and its every partner shall be punishable with fine which shall not be less than
fifteen thousand rupees but which may extend to five lakh rupees.

MCQ on LLP Page 20 of 23

Correct Option: D

86. Who can be a designated partner in LLP where all the partners are bodies corporate:

a. The Company Secretaries of the body corporate shall act as designated partners.
b. The Chief Financial Officers of the body corporate shall act as designated partners.
c. Nominees of such bodies corporate shall act as designated partners.
d. The Managing Directors of the body corporate shall act as designated partners.

Correct Option: C

87. What is Designated Partnership Identification Number(DPIN):

a. It includes Directors Identification Number (DIN) issued under sections 266A, 266B and
266E of the Companies Act, 1956 and rules made there under.
b. It means an identification number which the Central Government may allot to any
individual intending to be appointed as designated partner of LLP.
c. Both A and B are correct.
d. None of the above.

Correct Option: C

88. What is the filing fee for LLP in case where the contribution of LLP exceed Rs One
lakh but does not exceeds Rs Five lakh:

a. Rs.150.
b. Rs. 200
c. Rs.100.
d. Rs. 50.

Correct Option: C

89. LLP should have minimum

(a) 7 partners (b) 50 partners
(c) 2 partners (d) 3 partners

90. The maximum number of partners LLP can have is

(a) 7 partners (b) 50 partners
(c) 2 partners (d) No limit

91. Every limited liability partnership shall have at least________ designated partners who
are individuals.
(a) 7 (b) 50
(c) 2 (d) 3

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 92. At least_________ of the designated partners of every limited liability partnership
shall be a resident in India.
(a) one (b) two
(c) three (d) seven

93. In absence of LLP Agreement, the mutual rights of Partners and in relation to LLP will
be determined as per Schedule_________ of the LLP Act 2008.
(a) I (b) II
(c) VI (d) VIII

94. A Limited Liability Partnership whose contribution exceeds Rs________ is required to

annually get its accounts audited by any Chartered Accountant in practice.
(a) 40 Lakh (b) 1 lakh
(c) 25 Lakh (d) 50 lakh

95. A Limited Liability Partnership whose turnover exceeds Rs_________ is required to

annually get their accounts audited by any Chartered Accountant in practice.
(a) 40 Lakh (b) 1 lakh
(c) 25 Lakh (d) 50 lakh

96. LLP is governed by

(a) Partnership Act, 1932 (b) Companies Act, 1956
(c) Limited Liability Partnership Act, 2008
(d) Companies Act, 2013

97. Following can become a partner in the LLP:

(a) Company incorporated in India
(b) LLP incorporated outside India
(c) Individuals resident outside India
(d) any of the above

98. Following can become a partner in the LLP:

(a) Company incorporated outside India
(b) LLP incorporated in India
(c) Individuals resident in India
(d) any of the above

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 99. A partner of LLP has the following right, only if provided in the LLP agreement
(a) participate in the management of the LLP
(b) get remuneration for participating in the management of LLP
(c) share equal profits in the LLP
(d) transfer his right to share in the profit/losses of the LLP

MCQ on LLP Page 23 of 23