Question

A partnership firm can be dissolved when the number of partners exceed __________ as per the Companies Act, 1956.

• A. $5$
• B. $7$
• C. $15$
• D. $20$

Answer 1

The correct option is D $20$

According to provisions of companies' act, 1956, the maximum number of partners allowed in a partnership firm is 10 for partnership firm carrying banking business and 20 for partnership firm carrying non-banking business. Hence, a partnership firm can be dissolved when the number of partners exceed 20.