Industry: UPSC Previous Year Questions (Indian Economy)

Explanation

A Limited Liability Partnership (LLP) is a hybrid business structure that combines the features of a partnership and a corporation.

Option (a) is correct: There is no upper limit on the number of partners in an LLP. It is a feature of traditional partnerships under the Indian Partnership Act, 1932, where the maximum number of partners is limited to 50 for certain businesses.

Option (b), (c) and (d) are incorrect:

In an LLP, partners can directly manage the business and there is no requirement for a separation between ownership and management. This is a key feature of LLPs. The internal governance of an LLP including the rights and duties of partners, can be decided by mutual agreement among the partners. This flexibility is a characteristic feature of LLPs. An LLP is a corporate body with a separate legal entity, and it enjoys perpetual succession, meaning the LLP continues to exist even if the partners change or leave.

Explanation

Option (b) is correct: The Forward Markets Commission (FMC) was the regulatory authority for commodity futures markets in India. It was responsible for overseeing trading in commodity futures, including the regulation of commodity exchanges like NCDEX and MCX. In 2015, the FMC was merged with SEBI to create a unified regulator for both commodities and securities markets. So, if this question were about the present day, SEBI would be the correct answer for regulating commodities futures trading! Options (a), (c) and (d) are incorrect: Currency Futures Trading and Equity Futures Trading are regulated by SEBI. FMC only regulated commodities futures trading. Financial futures (like equity and currency futures) were regulated by SEBI.

Explanation

The Special Economic Zones (SEZ) Act, 2005 was enacted to boost economic growth by creating designated zones with special incentives for businesses.

Statement 1 is correct: One of the key objectives of the SEZ Act is to develop world-class infrastructure facilities within these zones. This includes roads, power, water supply, and other utilities to attract businesses and promote industrial growth.

Statement 2 is correct: The SEZ Act aims to attract foreign direct investment (FDI) by offering tax incentives, simplified regulations, and a business-friendly environment. This helps in bringing in capital and technology from abroad.

Statement 3 is incorrect: The SEZ Act is not limited to promoting exports of services only. It aims to promote both goods and services exports. SEZs are designed to boost over-all export-oriented production, including manufacturing, IT services, and other sectors.