There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: Partners are principals but not the agents of other partners.
Reason: As per the definition of partnership, a business can be carried on by all or any of them acting for all. Thus, they are the principals and also the agents.

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

The correct answer is option 4- Assertion (A) is not true but Reason (R) is correct.

Assertion: Partners are principals but not the agents of other partners. THIS IS NOT TRUE as partners are both principals and agents.
Reason: As per the definition of partnership, a business can be carried on by all or any of them acting for all. Thus, they are the principals and also the agents. THIS IS TRUE.

The business of a partnership concern may be carried on by all the partners or any of them acting for all. This statement has two important implications. First, every partner is entitled to participate in the conduct of the affairs of its business. Second, that there exists a relationship of mutual agency between all the partners. Each partner carrying on the business is the principal as well as the agent for all the other partners. He can bind other partners by his acts and also is bound by the acts of other partners with regard to business of the firm. Relationship of mutual agency is so important that one can say that there would be no partnership, if the element of mutual agency is absent.