Multiple choice

Which of the following is not an essential requisite for creating a partnership as per Section 4 of the Partnership Act?

  1. An agreement to carry on a business

  2. Sharing of profits

  3. Sharing of losses

  4. Business to be carried by all or any of them acting for all

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option (3) is correct: Section 4 of Partnership Act states that partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Sharing of losses is not an essential requisite under this section.