Multiple choice

A partnership is a contract with all of the following features, except that the

  1. contract can be oral contract also

  2. contract is to carry any type of business, lawful or otherwise

  3. business is to be carried to make profits and share profits

  4. mutual relationship between partners is of agency
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under partnership contract, any business should be in accordance to the laws. The owners are all personally liable for any legal actions and debts the company may face, unless otherwise provided by law or in the agreement. 

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