Multiple choice

In case of a firm carrying on the business of 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 ten 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
B Correct answer
Explanation

Under the Indian Partnership Act, 1932, for firms carrying on banking business, the number of partners must be between 2 and 10. This special restriction exists because banking involves public trust and depositors' money. Option B correctly states this 2-10 limit. Option A incorrectly sets a minimum of 7 - any partnership needs at least 2. Option C's 10-20 range is wrong for banking. Option D's 2-50 limit applies to non-banking businesses, not banking firms which have stricter requirements.

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