Assertion (A) - It is not compulsory to register a partnership firm.
Reason(R) - There are no penalties for non-registration of a firm.
Reason(R) - There are no penalties for non-registration of a firm.
Answer & explanation
Correct answer: option 2
Partnership firms in India are governed by the Indian Partnership Act, 1932. While it is
not compulsory to register your partnership firm as there are no penalties for non-registration.