Question

Following are the essential elements of a partnership, except ______________.

• A. at least two persons
• B. there is an agreement between all partners
• C. equal share of profit and losses
• D. partnership agreement for some business

Answer 1

The correct option is C equal share of profit and losses

Section 4 of the Indian Partnership Act, 1932 defines partnership as a 'relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all'. The essential features of partnership are:

1. Two or more persons

2. Agreement

3. Business

4. Mutual Agency

5. Sharing of Profit

6. Liability of Partnership