Fill in the blank: A partnership cannot exist if only one partner is entitled to ___ from the business.

Profits

True or False: A minor can be a partner in a partnership.

False. A minor cannot be a partner in a firm but may be admitted to the benefits of partnership with the consent of all existing partners.

What is the essential element that distinguishes a partnership from a mere co-ownership?

Partnerships involve profit-sharing intentions.

• Partnerships share profits collectively.

• Co-ownership lacks profit-sharing intent.

• Intent differentiates legal structures.

Describe the principle of mutual agency in a partnership.

Mutual agency binds all partners.

• Partners act as agents.

• Decisions impact all members.

• Liability shared among partners.

What is the maximum number of partners allowed in a partnership as per the Companies Act, 2013?

The Companies Act, 2013 limits the number of partners in certain types of associations to 50.

Fill in the blank: In a partnership, the death of a partner typically leads to the ___ of the firm.

Dissolution

True or False: A partnership agreement must always be in writing.

False. A partnership agreement can be verbal or written, although a written agreement is advisable to prevent disputes.

What is meant by 'partnership by holding out'?

Partnership by holding out defined.

• Implied partnership representation.

• Creates liability for debts incurred.

• Involves third-party reliance on status.

Summarize the process for dissolving a partnership.

Partnerships can be dissolved easily.

• Requires agreement of partners.

• Death or insolvency triggers dissolution.

• Ends after specific venture completion.