Q.Under Section 4 of the Indian Partnership Act, 1932, 'partnership' is defined as:
(A) An association of any number of persons carrying on a lawful business
(B) 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
(C) A written agreement registered with the Registrar of Firms
(D) A business owned and managed by a single person with unlimited liability

Section 4 defines partnership specifically as a RELATION arising from an agreement to share profits, where the business is carried on by all or any acting for all — not by registration or number of members alone.

Match each option against the exact statutory wording; only one option states Section 4's actual definition.

Section 4 states: "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." This wording is the exam's most literally-tested line in the whole chapter.

Option-by-option analysis:

• (A) Incorrect — mere association carrying on a lawful business, without an agreement to share profits and mutual agency, is not what Section 4 defines.
• (B) Correct — this is the exact statutory definition.
• (C) Incorrect — registration is not compulsory and is not part of the definition at all (Section 69 deals with the consequences of non-registration, separately).
• (D) Incorrect — this describes a sole proprietorship, not a partnership, which by definition needs two or more persons.