Skip to content

CMA Intermediate · Business Laws and Ethics · Indian Partnership Act, 1932

Under the Indian Partnership Act, 1932, "partnership" is best described as the relation between persons who have:

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. Registration, equal capital or equal loss sharing are not part of the statutory definition in Section 4.

  1. Aagreed to share the profits of a business carried on by all or any of them acting for allCorrect
  2. Bregistered a firm with the Registrar of Firms and paid the prescribed fee
  3. Ccontributed equal capital to a business and agreed to share losses equally
  4. Dreceived a share of the profits of a business from its owner as remuneration

Explanation

Section 4 defines partnership as 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. Registration is not part of the definition, and equal capital is not required.

Did you get it right without looking?

One question tells you little. A timed set on Indian Partnership Act, 1932 shows your real accuracy, how long you take and where you lose marks.

Practise Indian Partnership Act, 1932Free diagnostic mock

More Indian Partnership Act, 1932 questions