Question

Select the most appropriate alternative from those given below and rewrite the statement.

Maximum __________________ persons are required to form a partnership having trading business.
a) twenty
b) fifty
c) seven
d) ten

Answer 1

Maximum twenty persons are required to form a partnership having trading business.
Explanation: As per the Companies Act of 1956, a maximum of twenty persons can form a partnership having trading business. The Act also prohibits a firm with more than 10 partners in case of banking business.