Accountancy Part AAccounting for Partnership

Select the maximum number of partners that Central Government has pre…

Select the maximum number of partners that Central Government has prescribed in case of a partnership firm.

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → 50

The Companies Act, 2013 allows the Central Government to prescribe the maximum number of partners (not more than 100), and it has prescribed 50.

NCERT (2026-27 edition):
Two or More Persons – “… In order to form partnership, there should be at least two persons coming together for a common goal. In other words, the minimum number of partners in a firm can be two. 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.”