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Following are the essential elements of a partnership firm except:
- a)Atleast two persons.
- b)There is an agreement between all partners.
- c)Equal share of profits and losses.
- d)Partnership agreement is for some business.
Correct answer is option 'C'. Can you explain this answer?
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Following are the essential elements of a partnership firm exce...
Essential elements of partnership in business are given below:
This definition contains five elements which constitute 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 (i.e., there must be mutual agency).
All the above elements must coexist in order to constitute a partnership. If any of these is not present, there cannot be a partnership.
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Following are the essential elements of a partnership firm exce...
Explanation:
A partnership firm is a form of business organization in which two or more persons come together to carry on a business with a view to earning profits. The essential elements of a partnership firm are as follows:
At Least Two Persons:
A partnership firm must have at least two persons to start a business. A single person cannot form a partnership firm.
Agreement Between All Partners:
There must be an agreement between all the partners to start a partnership firm. This agreement is called a partnership deed. The partnership deed contains the terms and conditions of the partnership, such as the name of the firm, nature of business, capital contribution of each partner, profit-sharing ratio, etc.
For Some Business:
The partnership agreement is for a particular business. It cannot be formed for any illegal or unlawful business.
Not Essential: Equal Share of Profits and Losses:
Equal sharing of profits and losses is not an essential element of a partnership firm. It can be decided by mutual agreement. Partners can agree to share profits and losses in any ratio they want.
Therefore, option (C) is incorrect. It is not an essential element of a partnership firm that partners must have an equal share of profits and losses.
A partnership firm is a form of business organization in which two or more persons come together to carry on a business with a view to earning profits. The essential elements of a partnership firm are as follows:
At Least Two Persons:
A partnership firm must have at least two persons to start a business. A single person cannot form a partnership firm.
Agreement Between All Partners:
There must be an agreement between all the partners to start a partnership firm. This agreement is called a partnership deed. The partnership deed contains the terms and conditions of the partnership, such as the name of the firm, nature of business, capital contribution of each partner, profit-sharing ratio, etc.
For Some Business:
The partnership agreement is for a particular business. It cannot be formed for any illegal or unlawful business.
Not Essential: Equal Share of Profits and Losses:
Equal sharing of profits and losses is not an essential element of a partnership firm. It can be decided by mutual agreement. Partners can agree to share profits and losses in any ratio they want.
Therefore, option (C) is incorrect. It is not an essential element of a partnership firm that partners must have an equal share of profits and losses.
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Following are the essential elements of a partnership firm exce...
Share equal profit nd losses is not necessary share according to agreement
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Following are the essential elements of a partnership firm except:a)Atleast two persons.b)There is an agreement between all partners.c)Equal share of profits and losses.d)Partnership agreement is for some business.Correct answer is option 'C'. Can you explain this answer?
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