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.
Question : Assertion (A): A partnership deed may contain clauses that differ from those found in the Partnership Act of 1932, and in such cases, the provisions of the partnership deed take priority.
Reason (R): When partners cannot come to an agreement on a topic, the Partnership
Question : Assertion (A): Dissolution of the firm means the dissolution of the partnership between all the partners of the firm.
Reason (R): Dissolution of the firm means the closure of business and therefore means dissolution of
Question : According to —— the dissolution of partnership between all the partners of a firm is called dissolution of the partnership firm.
Question : Assertion (A): The partner’s Private Property can be applied to pay the firm’s debt.
Reason (R): In a partnership firm, partners have unlimited liability.
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