Question

Assertion (A): A public company must have atleast 7 members and there is no limit as to the maximum number of members.

Reason (R): A private company must have atleast 2 members and maximum 200 excluding its present or past employees.

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

पर्याय

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

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

• Only (R) is correct.

• Both (A) and (R) are wrong.

Answer 1

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

Explanation:

Assertion (A) is true, A public company must have at least 7 members, and there is no maximum limit on the number of members.

Reason (R) is also true, A private company must have at least 2 members and not more than 200, excluding current and former employees.

However, (R) does not explain (A), as it relates to private companies, not public ones.