Question

The essential elements of Partnership include ________.

• A. there must be an association of three or more persons
• B. there must be an agreement to share profits and losses equally
• C. there must be mutual agreement among partners
• D. the relationship must be registered

Answer 1

The correct option is C there must be mutual agreement among partners

Any partnership is based on various features and elements but the most important or essential is an agreement defining the partnership.

An agreement is must because it lays down all the important information regarding partnership like sharing ratio, liability limit and many more.

The other options are not that essential because it's not necessary to have at least three partners and agreement need to be written along with the firm being registered.