Multiple choice

Which of the following relationships forms partnership?

  1. A money lender sharing a part of profits in addition to interest

  2. An agent getting a share in addition to his commission

  3. Widow of a partner getting annuity from firm

  4. Sharing of profits between two college friends carrying a part-time business
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It does not matter whether the business is part-time or full-time. The sharing of profits constitutes an element of partnership. Though all others are getting a part of profits, but are not partners.

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