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There cannot be more than ___ partners in a non-banking partnership business.
- a)2
- b)10
- c)50
- d)20
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
There cannot be more than ___ partners in a non-banking partnership bu...
Partnership businesses are governed by the Indian Partnership Act, 1932. According to this act, the maximum number of partners in a non-banking partnership business should not exceed 20.
Reasons for limitation on the number of partners:
- To ensure effective management and decision-making in the business
- To avoid complications in sharing profits and losses among a large number of partners
- To prevent the business from becoming too large and unwieldy
Consequences of exceeding the maximum limit:
- The partnership becomes illegal and cannot be enforced in a court of law
- The partners become personally liable for all the debts and obligations of the business
- The partnership may have to be dissolved and reconstituted with a smaller number of partners
Therefore, it is important for partnership businesses to ensure that they do not exceed the maximum limit of 20 partners.
Reasons for limitation on the number of partners:
- To ensure effective management and decision-making in the business
- To avoid complications in sharing profits and losses among a large number of partners
- To prevent the business from becoming too large and unwieldy
Consequences of exceeding the maximum limit:
- The partnership becomes illegal and cannot be enforced in a court of law
- The partners become personally liable for all the debts and obligations of the business
- The partnership may have to be dissolved and reconstituted with a smaller number of partners
Therefore, it is important for partnership businesses to ensure that they do not exceed the maximum limit of 20 partners.
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There cannot be more than ___ partners in a non-banking partnership bu...
C i.e 50 according to companies act 2013
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There cannot be more than ___ partners in a non-banking partnership business.a)2b)10c)50d)20Correct answer is option 'D'. Can you explain this answer?
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There cannot be more than ___ partners in a non-banking partnership business.a)2b)10c)50d)20Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about There cannot be more than ___ partners in a non-banking partnership business.a)2b)10c)50d)20Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for There cannot be more than ___ partners in a non-banking partnership business.a)2b)10c)50d)20Correct answer is option 'D'. Can you explain this answer?.
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