Assertion (A) - It is not compulsory to register a partnership firm. Reason(R) - There are no penalties for non-registration of a firm.

Both A and R are true. R is the correct explanation of A Both A and R are true, but R is not the correct explanation of A A is correct, but R is incorrect A is incorrect, but R is correct

Both A and R are true, but R is not the correct explanation of A

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.