Multiple choice

A share in a partnership

  1. can be transferred in accordance with the terms and conditions contained in the partnership deed

  2. can be transferred only if all the partners agree for such transfer

  3. cannot be transferred at all

  4. can be transferred through the recognized stock exchanges
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A partnership share cannot be transferred without unanimous consent of all partners because partnership is based on mutual confidence and personal relationships. Unlike company shares, partnership interests are not freely transferable. The transfer requires all partners' agreement as it fundamentally changes the partnership composition.

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