Question

Property of the firm shall be held by use of the partners __________________.

• A. Exclusively for business purpose
• B. For business purposes as well as private purposes of the partners
• C. For the private purposes of the partners
• D. For business purposes but in exceptional cases it can used for private purpose

Answer 1

The correct option is A Exclusively for business purpose

A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. In the absence of any partnership deed, all the property, rights and interest contribute by the individual partners, all the property acquired in the course of the business and the goodwill of the business is considered as the property of the firm. These properties should be used by all the partners exclusively for business purpose only.