Multiple choice

In case of a firm carrying on the business other than banking

  1. there should be at least seven members and maximum number of members should not exceed fifty

  2. there should be at least two members and maximum number of members should not exceed ten

  3. there should be at least two members and maximum number of members should not exceed twenty

  4. there should be at least two members and maximum number of members should not exceed fifty
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under partnership law, a non-banking firm must have at least 2 partners and cannot exceed 20 partners. Banking partnerships are more restrictive, capped at 10 partners. This 20-partner limit for general firms and 10-partner limit for banking firms helps maintain manageable liability and regulatory oversight.

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