Accountancy Part AAccounting for Partnership

The Central government has prescribed the maximum number of partners…

The Central government has prescribed the maximum number of partners in a firm to be __________.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 50

NCERT (2026-27 edition):
Nature of Partnership – “… 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.”