Any of the partners is from enemy country
Established for unlimited period
There are seven partners
Registered under the Partnership Act
Answer is Right!
Answer is Wrong!
The correct answer is: A. Any of the partners is from enemy country.
A partnership firm is illegal when any of the partners is from an enemy country. This is because, under the Partnership Act, a partnership firm can only be formed between two or more persons who are natural persons, i.e., human beings. A partnership firm cannot be formed between a natural person and a juristic person, i.e., a legal entity such as a company. An enemy country is a country with which India is at war. Therefore, a partnership firm cannot be formed between a person from India and a person from an enemy country.
The other options are not correct because:
- A partnership firm can be established for an unlimited period.
- There is no limit on the number of partners in a partnership firm.
- A partnership firm is not required to be registered under the Partnership Act. However, it is advisable to register a partnership firm for the sake of convenience and to enjoy certain benefits.