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A two-partner firm operating a small retail store has been formed in Pune through a partnership deed. Which legislation chiefly governs its rights, duties and dissolution under the framework outlined in the lesson?
Answer & Solution
Correct answer: C.
1. The lesson states that partnership firms in India are governed by the Indian Partnership Act, 1932.
2. The deed is the contractual document but the statute supplies the default rules and dissolution mechanics.
3. LLPs are governed by the LLP Act, 2008, not the 1932 Act.
4. Companies fall under the Companies Act, 2013, which is a different vehicle.
_Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._
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