Q.Write a short note on: Partnership firm

As defined in the Indian Partnership Act, 1932, a 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. The firm is the collective name under which the partners carry on business.

Partnership Firm

According to Section 4 of the Indian Partnership Act, 1932, '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.' The persons who enter into this agreement are individually called partners and collectively called a firm, and the name under which the business is carried on is the firm name. Essential features:

• Two or more persons are needed to form a partnership.
• There must be an agreement between the partners (the partnership deed).
• The agreement must be to carry on a lawful business.
• There must be sharing of profits (and, by implication, losses).
• The business is carried on by all or any of them acting for all (mutual agency). …