A partnership firm cannot raise funds by __________.

A. bank loan

B. Partner loan

C. debentures

D. partner capital

Answer: Option C

Solution(By Examveda Team)

A partnership firm cannot raise funds by debentures. A common source of funding for a new or expanding partnership is the pockets, deep or otherwise, of the partners themselves. Known as self-funding or bootstrapping, consider how much of your own financial resources you can put in toward your business, and ask your partners to do the same. Sources can include savings, stocks and bonds, and even retirement account funds.