Question

Following are the essential elements of a partnership firm except ____________.

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

Answer 1

The correct option is C equal share of profits and losses

The essential elements of partnership firm are at least two persons, there is an agreement between all partners and partnership agreement is for some business. But its not necessary to that the partners have equal share of profits. They may have any profit sharing ratio as agreed or in the deed.