Explanation:

Here’s the thing about partnership firms:

- Option 1: “A distinct legal entity from its partners”— This is *not* correct. Unlike companies, a partnership firm isn’t separate from the people who own it.

- Option 2: “Not a distinct legal entity from its partners”— This is spot on. The law doesn’t treat the firm as independent from the partners. If something goes wrong, the partners are personally on the hook.

- Option 3: “A juristic person”—Nope, that’s for companies, trusts, or sometimes societies—not usually for a partnership firm in the classic sense.

- Option 4: “None of the above”—That doesn’t work here, because option 2 is correct.