Accountancy Part AAccounting for Partnership

A partnership can have maximum 50 partners. This limit has been set b…

A partnership can have maximum 50 partners. This limit has been set by the:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Central Government

NCERT (2026-27 edition):
Two or More Persons – “… There is however, a limit on their maximum number. By virtue of Section 464 of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners can not be more than 100. The Central government has prescribed the maximum number of partness in a firm to be 50.”