Multiple choice

Which of the following statements, about the registration of firm, is not true?

  1. It must be done at the time of its formation.

  2. It may be done at the time of formation.

  3. It may be done before filing a suit against third party.

  4. It may be done at any time after its formation.
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A Correct answer
Explanation

Partnership firm registration is optional, not mandatory - it can be done at the time of formation or any time afterward. It can also be done before filing a suit against a third party. The statement claiming it must be done at formation is false because registration is voluntary and can be completed at various times.

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