Multiple choice

Non-registration of a partnership firm

  1. is a criminal offence

  2. renders the partnership illegal

  3. is compulsory to activate the partnership

  4. is not compulsory but desirable

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Indian Partnership Act, non-registration of a firm does not make the partnership illegal or criminal. However, it cannot enforce certain rights in court (like suing third parties). Registration is optional but provides legal protection and evidentiary benefits.