Partnership is established by ___________a)Lawful Businessb)Agreementc)Lawd)Section 4Correct answer is option 'B'. Can you explain this answer?

Question

Answer

Partnership is estabilished through agreement among the partners .The agreement can either be written or oral.

Answer

partner agreement is most because your partner mood change you can not any proof you not do anything

Answer

Partnership is an agreement in which two or more than two persons join hands to run a lawful business and share future profits and losses in deciding ratio...

Answer

Partnership is established by Agreement

Partnership is a type of business organization in which two or more individuals come together to carry on a business with a view to making a profit. It is established by an agreement between the partners. Let's discuss this in more detail:

The Nature of Partnership
- Partnership is a voluntary association of two or more individuals who agree to carry on a business together.
- The partners pool their resources, skills, and expertise to achieve common business goals and share the profits and losses in an agreed-upon manner.
- It is a flexible form of business organization that allows for the combination of different talents and resources.

Formation of Partnership
- Partnership is formed by an agreement between the partners. This agreement can be oral or written, but it is advisable to have a written agreement to avoid any ambiguity or disputes in the future.
- The agreement typically covers important aspects such as the name of the partnership, capital contributions of each partner, profit-sharing ratios, decision-making authority, and the duration of the partnership.
- The agreement may also include provisions regarding the admission of new partners, retirement or expulsion of existing partners, and the dissolution of the partnership.

Legal Requirements
- Although partnership is based on an agreement, there are certain legal requirements that need to be fulfilled for a partnership to be valid and legally recognized.
- The agreement must be entered into with the intention of carrying on a business and making a profit.
- The partners must have the capacity to enter into a contract, i.e., they must be of legal age, sound mind, and not disqualified by law from entering into a partnership.
- The partnership agreement should comply with the relevant laws and regulations of the jurisdiction in which it operates.

Benefits of Partnership
- Partnership offers several benefits, such as shared responsibilities and risks, access to a wider pool of resources, division of labor, and the ability to combine different skills and expertise.
- It also allows for flexibility in decision-making, as partners have the freedom to make decisions collectively or delegate authority to specific partners.
- Partnership can also benefit from tax advantages and enjoy better access to financing and credit facilities.

In conclusion, partnership is established by agreement between the partners. The agreement outlines the terms and conditions of the partnership, including the rights, obligations, and responsibilities of each partner. It is important for the partners to have a clear and comprehensive agreement to ensure smooth operation and avoid any potential conflicts or disputes.

Top Courses for CommerceView all

Economics Class 12

Business Studies (BST) Class 12

Economics Class 11

Accountancy Class 12

Business Studies (BST) Class 11

Top Courses for Commerce

Top Courses for Commerce

Related Content

Commerce Courses

Other Courses

How To Prepare?

Related Exams

Company