There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the code provided below-

Assertion: A partnership firm has no separate legal entity apart from the partners constituting it.
Reasoning: The Central government has prescribed the maximum number of partners in a firm to be 100.

Assertion (A) is true but Reasoning (R) is not correct.

The correct answer is option 3- Assertion (A) is true but Reasoning (R) is not correct.

Assertion: A partnership firm has no separate legal entity apart from the partners constituting it. This is true. Partnership is the result of an agreement between two or more persons to do business and share its profits and losses. The agreement becomes the basis of relationship between the partners. Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner. Not only that the liability of a partner for acts of the firm is also unlimited.

Reasoning: The Central government has prescribed the maximum number of partners in a firm to be 100. This is false as Central govt prescribed limit of 50.  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 partners in a firm to be 50.

Thus, assertion is true but reason is not true. So, the correct answer is option 3.