Question

Partnership is the relation between two or more persons _______.

• A. who are sharing profits & losses equally of a business carried on by all or any them acting for all
• B. who have agreed to share the profits of a business carried on by all.
• C. who have agreed to share the profits & losses equally of a business carried on by all or any them acting for all
• D. none of these

Answer 1

Answer: (D)

none of these

All of the statements are incorrect for a partnership firm because:

The first statement is not meant for partnership as it the profit sharing cannot always be equal, it is mutual decision of partners to decide the ratio.

Again the second is also incorrect it is ot mandatory that partnership must be run by every partner. A single partner can also run the business as per the consent of partners.

The third statement is again incorrect. As stated above, it is not a compulsion to share profits equally. It canbe any ratio as decided by partners.