You can have up to four primary partitions. If you need more than four partitions, then you need to use an extended partition. Extended partitions can't be made active.
The partition table supported up to four primary partitions, of which DOS could only use one. This did not change when FAT16 was introduced as a new file system with DOS 3.0. Support for an extended partition, a special primary partition type used as a container to hold other partitions, was added with DOS 3.2 and nested logical drives inside an extended partition came with DOS 3.30
The Status field in a partition table record is used to indicate an active partition. Standard-conformant MBRs will allow only one partition marked active and use this as part of a...