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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Which of the following correctly matches the terms used in the Indian Partnership Act, 1932? (1) Persons who have entered into partnership individually; (2) Persons who have entered into partnership collectively; (3) Name under which the business is carried on.

Individually the persons are called partners, collectively they are called a firm, and the name under which the business is carried on is called the firm name, as laid down in the definition section of the Indian Partnership Act, 1932.

  1. A(1) firm, (2) partners, (3) firm name
  2. B(1) partners, (2) a firm, (3) firm nameCorrect
  3. C(1) partners, (2) firm name, (3) a firm
  4. D(1) a firm, (2) firm name, (3) partners

Explanation

Section 4 states that persons who have entered into partnership are individually called partners and collectively a firm, and the name under which their business is carried on is the firm name. The other options swap these terms.

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