Question : Assertion (A): Partnership Deed is a legal document signed by all the partners.
Reason (R): Any type of charitable institution running as a not-for-profit organization will not be considered as a business.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is false
Option 4: Assertion (A) is false but Reason (R) is true
Correct Answer: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
Solution :
A partnership deed is a legal document signed by all the partners containing basic information like the name and address of the firm, the nature of the business, etc. On the other side, a charitable institution is set up for not making a profit which is not a characteristic of a business.
Hence, the correct option is 2.
