Accountancy Part AAccounting for Partnership

Central government has prescribed the maximum number of partners in a…

Central government has prescribed the maximum number of partners in a firm by virtue of _________ of the _________ .

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Section 464, Companies Act 2013

NCERT (2026-27 edition):
Nature of Partnership – “… 1. 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.”