Multiple choice

The significant elements of partnership include contract, association of two or more persons, carrying on of business and sharing of profits. All these elements must coexit.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 6 of the Partnership Act states that partnership is the relation between persons who have agreed to share profits of a business carried on by all or any acting for all. The four essential elements - contract, association of 2+ persons, carrying on business, and profit-sharing - must ALL coexist. Missing any element means no partnership.

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