Question

Assertion (A): A partnership firm can have maximum 50 partners.

Reason (R): Maximum limit of partners is prescribed in the Partnership Act, 1932.

In the context of the above two statements, which of the following is correct?

विकल्प

• Both (A) and (R) are correct and (R) is the correct explanation of (A).

• Both (A) and (R) are correct but (R) is not the correct explanation of (A).

• Only (A) is correct.

• Both (A) and (R) are wrong.

Answer 1

Only (A) is correct.

Explanation:

A partnership firm can have a maximum of 50 partners, but this limit is not prescribed in the Partnership Act, 1932. Instead, it is specified under Rule 10 of the Companies (Miscellaneous) Rules, 2014, issued under the Companies Act, not the Partnership Act. Therefore, the assertion is correct, but the reason is incorrect.