ExpertEasy1 markMultiple Choice
The formation and constitution of business organisationsThe formation and constitution of business organisationsPartnerships
ACCA · Question 45 · The formation and constitution of business organisations
Section A
What is the maximum number of partners allowed in a standard partnership formed under the Partnership Act 1890?
Section A
What is the maximum number of partners allowed in a standard partnership formed under the Partnership Act 1890?
Answer options:
A.
20
B.
50
C.
100
D.
There is no maximum limit.
How to approach this question
Recall the current rules regarding partnership size following deregulation.
Full Answer
D.There is no maximum limit.✓ Correct
Historically, the Companies Act 1985 limited partnerships to 20 members. However, this restriction was removed in 2002. There is now no maximum limit on the number of partners in a standard partnership.
Common mistakes
Believing the old 20-partner limit still applies.
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