Identify which statement is FALSE?

The correct answer is Option (3) → In a partnership deed, the method of settlement of dispute among the partner cannot be included / mentioned

A partnership deed is the written agreement that sets out the terms among the partners. It can cover every matter of their relationship, and the method of settling disputes among the partners is one of its usual contents. So the statement that it cannot be included is false.

Option (1) In case of no written agreement between partners, a partnership can be started — A true statement. The partnership agreement may be oral or written; the Act does not demand writing.

Option (2) If a partnership deed does not exist, each partner will share profit in equal ratio — A true statement. Where the deed is silent (or there is no deed), profits and losses are shared equally, whatever the capital.

Option (4) Maximum number of partners in a Partnership Firm must not exceed 50 — A true statement. The Central Government has prescribed 50 as the maximum number of partners in a firm.