A and B are legal heirs of C. After death of C, they carried business without entering into the…
A and B constitute an association of persons (AOP) when they carry on the inherited business together without forming a partnership. Their joint business activity goes…
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A and B are legal heirs of C. After death of C, they carried business without entering into the partnership. What is their status?
Answer and explanation
Correct answer B
A and B constitute an association of persons (AOP) when they carry on the inherited business together without forming a partnership. Their joint business activity goes beyond merely receiving inherited property, while an LLP or company requires a separate legal constitution.
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Telangana SET (TG SET)