Transfer of share in the partnership firm is _____________.

restricted

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freely transferable

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prohibited

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none of these

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Solution

The correct option is B restricted
A partnership firm, is not a legal person and hence cannot be a shareholder of a company however they can not issue shares to the public and if there are no share, transfer of shares is also not possible but the firm can purchase shares of a company in the individual names of its partners.
Thus the correct answer is A.

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