Multiple choice

A, B and C are partners in a firm of XYZ & Co. They bought 100 bags of sugar. They agree to sell the sugar from their joint account and share profit. IN such terms and conditions, they are partners.

  1. True

  2. False

  3. Partly true

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

A, B, and C demonstrate all essential partnership elements: joint purchase (agreement to carry on business), joint account (sharing of assets), and profit sharing ( motive). The Indian Partnership Act defines this as a partnership.

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