As per section 11 of the Companies Act, a partnership firm consisting of more than 20 persons (10 in case of a banking company) unless registered a company or formed in pursuance of some other law become _______.

Illegal Association.

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Defunct firm.

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Banned firm.

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Offender firm.

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Solution

The correct option is B Illegal Association.
Partnership consisting of more than ten persons shall be formedfor the purpose of carrying on the business of banking, unless it is registered as a company under this Act or is formed in pursuance of some other Indian law.

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