Multiple choice

Which of the following partnerships is/are valid?

  1. Partnership between two partnership firms

  2. Partnership between one partnership firm and an individual

  3. Partnership between individual members of one firm and the individual members of another firm

  4. All of the above

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option (1) is incorrect: Partnership firm is not a legal firm in the eyes of law, so there cannot be a partnership between two partnership firms. Option (2) is incorrect: There cannot be a partnership with a partnership firm. Option (3) is correct: Partnership between individual members of one firm and the individual members of another firm is a valid partnership. Option (4) is incorrect: Option (3) is correct.

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