Question

A partner of an unregistered firm cannot ________.

• A. claim set-off if its value does not exceed Rs. 100
• B. file a suit for the dissolution of the firm
• C. file a suit for the accounts of a dissolved firm
• D. file a suit for claiming share of assets of a dissolved firm
• E. file a suit for the recovery of share of profits.

Answer 1

The correct option is E file a suit for the recovery of share of profits.

A partnership is a voluntary association of 2 or more persons who come together to do business and earn profits. Registration of a firm is not compulsory but the partners of a unregistered firm cannot file a suit against the firm or third parties and thereby cannot file a suit for the recovery of share of profits.