Assertion (A): The maximum number of partners has been specified in the Companies Act. 1956. Reason (R): The Partnership Act, 1932 has been merged with the Companies Act, 1956. Select the correct answer:

Both (A) and (R) are true and (R) is the correct explanation of (A)
Both (A) and (R) are true, but (R) is not correct explanation of (A)
(A) is true but (R) is false
(A) is false but (R) is true

The correct answer is: C. (A) is true but (R) is false.

The maximum number of partners in a partnership is 20. This is specified in the Partnership Act, 1932. The Companies Act, 1956, is a law that governs companies. It does not specify the maximum number of partners in a partnership.

Therefore, (A) is true because the maximum number of partners in a partnership is 20. However, (R) is false because the Companies Act, 1956, does not specify the maximum number of partners in a partnership.

Here is a brief explanation of each option:

  • A. Both (A) and (R) are true and (R) is the correct explanation of (A). This option is incorrect because (R) is not the correct explanation of (A). The maximum number of partners in a partnership is specified in the Partnership Act, 1932, not the Companies Act, 1956.
  • B. Both (A) and (R) are true, but (R) is not correct explanation of (A). This option is correct because (A) is true and (R) is not the correct explanation of (A).
  • C. (A) is true but (R) is false. This option is correct because (A) is true and (R) is false.
  • D. (A) is false but (R) is true. This option is incorrect because (A) is true.