(c) That's wrong. There are certain limits on the number of partners in a general partnership. Although the Partnership Acts do not limit the numbers of partners, section 115 of the Corporations Act requires that a firm of more than 20 persons must incorporate their business. The effect of this is that a general partnership may not exceed 20 members.

There are some important exceptions to this rule. The relevant Minister can consent in specific cases to a larger number of partners; and certain types of business (such as law and accountancy firms) are exempt from the rule.

In Edward's case, a partnership between himself and Ronnie would be a general partnership, and limited to a maximum of 20 members. This does not create any difficulty in the present circumstances, and if later on more partners joined the firm and the number exceeded twenty, the business could incorporate as a private company.