Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Fundamentals › Which statement about a partnership firm's legal…
Which statement about a partnership firm's legal status is correct?
AIt continues forever
BIt is a legal person
CIt is not a separate entity
DIt cannot hold assets
Answer & Solution
Correct answer: C. It is not a separate entity
A firm is only the partners collectively, so the law does not treat it as separate from them.
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