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Which statement distinguishing a partnership firm from a joint-stock company is correct?
AA firm enjoys perpetual succession
BPartners enjoy limited liability like shareholders
CA firm is a separate legal entity from its partners
DA firm has no separate legal personality, and each partner is an agent of the others with unlimited liability
Answer & Solution
Correct answer: D. A firm has no separate legal personality, and each partner is an agent of the others with unlimited liability
Unlike a company, a firm is not a separate legal entity, every partner is an agent of the others, liability is unlimited, and there is no perpetual succession.
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