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The most important element in partnership is:
  • a)
    Business
  • b)
    Sharing of Profits
  • c)
    Agreement
  • d)
    Business to be carried on by all or any of them acting for all
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The most important element in partnership is:a)Businessb)Sharing of Pr...
Partnership Firms in India are governed by the Indian Partnership Act, 1932. As per Section 4 of the Indian Partnership Act:-
“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”
Thus as per the above definition, there are 5 elements which constitute of a partnership namely: (1) There must be a contract; (2) between two or more persons; (3) who agree to carry on a business; (4) with the object of sharing profits and (5) the business must be carried on by all or any of them acting for all.
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The most important element in partnership is:a)Businessb)Sharing of Profitsc)Agreementd)Business to be carried on by all or any of them acting for allCorrect answer is option 'D'. Can you explain this answer?
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