Multiple choice

Which of the following is not a disability of an unregistered firm?

  1. It cannot file a suit against third parties.

  2. Its partners cannot file a suit against a firm.

  3. It cannot claim a set-off exceeding Rs. 100.

  4. It cannot be sued by a third party.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Unregistered firms face disabilities: cannot sue third parties (A), partners cannot sue the firm (B), and set-off claims are limited to Rs. 100 (C). However, third parties CAN sue unregistered firms - the disability limits the firm's offensive capabilities, not defensive ones.

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