Question

Registration of a firm is ___________.

• A. compulsory
• B. optional
• C. None of these
• D. Both A and B

Answer 1

The correct option is B optional

Registration of the firm is optional. Registration isn't mandatory but there are many disadvantages of not registering a firm.

An unregistered firm cannot sue partners or the partners cannot sue the firm, the firm cannot sue third parties, there is no proof in case of disagreement related to profit sharing ratio hence, difficult to solve disputes no proof in the court of law.