For the general civil-law character of an ordinary firm under the Indian Partnership Act, 1932, which…
Under the ordinary Partnership Act, a firm is the collective name for its partners. It is not a separate incorporated juristic person merely by being a partnership. Section…
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For the general civil-law character of an ordinary firm under the Indian Partnership Act, 1932, which statement is correct? Distinguish an LLP or specific tax/procedural treatment.
Answer and explanation
Correct answer D
Under the ordinary Partnership Act, a firm is the collective name for its partners. It is not a separate incorporated juristic person merely by being a partnership. Section 18 makes each partner an agent of the firm for its business, not the firm an agent of its partners. Procedural or tax recognition of a firm does not make this an LLP.
See sections 4 and 18 of the Indian Partnership Act, 1932.
Option feedback
Option A
Ordinary partnership does not acquire separate corporate personality by formation.
Option B
Registration as an ordinary firm does not create independent juristic personality.
Option C
The statute makes the partner the firm’s agent, not the reverse proposition.
Option D
None of the listed characterisations accurately describes the ordinary firm.
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