Multiple choice

Which of the following is not a correct statement in the context of registration of a partnership firm?

  1. Provisions for registration of a firm are u/s 58 of Indian Partnership Act.

  2. Registration of a firm is optional and not compulsory.

  3. If a firm is not registered, neither it can file suit in its own name, nor anyone else can file suit on this firm.

  4. If a firm is registered, it can file suit in its own name and a suit can be filed on the firm by others, whether registered or unregistered.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The registration of a partnership firm is voluntary and not compulsory as the word used under Section 58 which deals with registration of a firm is “may’’ and not “shall.”

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