Question : Assertion (A): A firm can have a minimum of 2 with a maximum of 50 Partners.
Reason (R): The limit of two Partners flows from the definition in the Partnership Act 1932; the Maximum limit of Partners is also prescribed in the Partnership Act 1932.
Option 1: Only assertion(A) is correct
Option 2: Only reason(R) is correct
Option 3: Assertion (A) is correct but Reason (R) is not correct.
Option 4: Both assertion(A) and reason(R) are correct
Correct Answer: Assertion (A) is correct but Reason (R) is not correct.
Solution : Answer = Assertion (A) is correct, but Reason (R) is not correct .
The assertion correctly states that a partnership firm can have a minimum of two partners, which is prescribed by the Partnership Act 1932. However, the reason incorrectly suggests that the maximum limit of partners is also prescribed in the same act. In reality, there is no maximum limit on the number of partners specified in the Partnership Act 1932. Therefore, assertion (A) stands true on its merit, but reason (R) is incorrect.
Hence, the correct option is 3.
