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Which of the following statements, about the registration of firm, is not true:
- a)It must be done at the time of its formation.
- b)It may be done at the time of formation.
- c)It may be done before filing a suit against third party.
- d)It may be done at any time after its formation.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Which of the following statements, about the registration of firm, is ...
Statement: Which of the following statements, about the registration of firm, is not true:
A: It must be done at the time of its formation.
B: It may be done at the time of formation.
C: It may be done before filing a suit against third party.
D: It may be done at any time after its formation.
Answer: A.
Explanation:
The registration of a firm refers to the process of legally establishing the firm as a separate legal entity. Here, we need to identify the statement that is not true.
A: It must be done at the time of its formation. (Not True)
This statement is not true because the registration of a firm is not mandatory at the time of its formation. It can be done at a later stage as well.
B: It may be done at the time of formation. (True)
This statement is true. The registration of a firm can be done at the time of its formation.
C: It may be done before filing a suit against a third party. (True)
This statement is true. The registration of a firm can be done before filing a suit against a third party.
D: It may be done at any time after its formation. (True)
This statement is true. The registration of a firm can be done at any time after its formation.
Therefore, the statement that is not true is A: It must be done at the time of its formation.
Most Upvoted Answer
Which of the following statements, about the registration of firm, is ...
Registration of Firm
The registration of a firm is a legal requirement that establishes the existence of a partnership or a Limited Liability Partnership (LLP). It provides legal recognition to the firm and enables it to enjoy certain rights, benefits, and privileges. However, among the given options, the statement that is not true is option 'A': It must be done at the time of its formation. Let's explore this in detail:
1. Importance of Firm Registration
- Registration is essential to create a legal identity for the firm.
- It allows the firm to sue or be sued in a court of law.
- It enables the firm to enter into contracts with third parties.
- It provides a mechanism for resolving disputes among partners.
- It ensures transparency and accountability in the firm's operations.
2. Timing of Firm Registration
- Option 'B' states that firm registration may be done at the time of formation, which is true. The partners or promoters of a firm can choose to register the firm at the time of its formation.
- Option 'C' also states that registration may be done before filing a suit against a third party, which is true. If a firm wishes to file a legal case against a third party, it is advisable to have the firm registered before initiating legal proceedings.
- Option 'D' states that registration may be done at any time after its formation, which is also true. If a firm is not registered at the time of its formation, it can still be registered at a later stage to avail the benefits of legal recognition.
3. Inaccuracy of Option 'A'
- Option 'A' states that firm registration must be done at the time of its formation, which is not true. While it is advisable to register the firm at the time of formation, it is not mandatory. The partners or promoters have the flexibility to register the firm at a later stage if they choose to do so.
Conclusion
The statement that is not true among the given options is option 'A'. Firm registration is not mandatory at the time of its formation, but it can be done at the time of formation, before filing a suit against a third party, or at any time after its formation.
The registration of a firm is a legal requirement that establishes the existence of a partnership or a Limited Liability Partnership (LLP). It provides legal recognition to the firm and enables it to enjoy certain rights, benefits, and privileges. However, among the given options, the statement that is not true is option 'A': It must be done at the time of its formation. Let's explore this in detail:
1. Importance of Firm Registration
- Registration is essential to create a legal identity for the firm.
- It allows the firm to sue or be sued in a court of law.
- It enables the firm to enter into contracts with third parties.
- It provides a mechanism for resolving disputes among partners.
- It ensures transparency and accountability in the firm's operations.
2. Timing of Firm Registration
- Option 'B' states that firm registration may be done at the time of formation, which is true. The partners or promoters of a firm can choose to register the firm at the time of its formation.
- Option 'C' also states that registration may be done before filing a suit against a third party, which is true. If a firm wishes to file a legal case against a third party, it is advisable to have the firm registered before initiating legal proceedings.
- Option 'D' states that registration may be done at any time after its formation, which is also true. If a firm is not registered at the time of its formation, it can still be registered at a later stage to avail the benefits of legal recognition.
3. Inaccuracy of Option 'A'
- Option 'A' states that firm registration must be done at the time of its formation, which is not true. While it is advisable to register the firm at the time of formation, it is not mandatory. The partners or promoters have the flexibility to register the firm at a later stage if they choose to do so.
Conclusion
The statement that is not true among the given options is option 'A'. Firm registration is not mandatory at the time of its formation, but it can be done at the time of formation, before filing a suit against a third party, or at any time after its formation.
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Which of the following statements, about the registration of firm, is not true:a)It must be done at the time of its formation.b)It may be done at the time of formation.c)It may be done before filing a suit against third party.d)It may be done at any time after its formation.Correct answer is option 'A'. Can you explain this answer?
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