Question : Assertion (A) : The development of Business is depends upon the ative partners only.
Reason (R) : Active partner is a person who provides his share in capital and also takes active part in the management of the 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 and Reason (R) is not 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: Assertion (A) is False, but Reason (R) is true.
Solution : An invested party who actively participates in the partnership's everyday operations is referred to as an active partner. A material participant is one who actively participates in the business in order to increase their returns. Compared to a limited or silent partner, this individual often shares greater risk and reward.
Hence the Correct answer is option 4.
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