Question

Agreement to share profits in a partnership firm ___________.

• A. must be coupled with an agreement to share losses
• B. is same as agreement to share losses
• C. implies an agreement to share losses
• D. does not necessarily mean an agreement to share losses

Answer 1

The correct option is C implies an agreement to share losses

As per Section $4$ of The Indian Partnership Act, $1932$ "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. Each person contributes money, property, labour or skill and expects to share in the profits and losses of the business.