Thursday, August 9, 2007

Partnership


Ques. "Partnership is by agreement and not by status" Do you agree to the statement? Explain.

1 comment:

bindu dewan said...

Partnership is by agreement not by status.
Partnership is the relation between 2 persons who have agreed to share the profits and losses of a business carried on by all of them or any one of them acting for all. To be called a partnership there must be an agreement between two or more people.
It is not necessary that if two persons are sharing profits and losses then they are partners.
For example A father and son doing a business together and sharing profits and losses can not be called partners as there is no agreement signed between them.
Similarly all male members of an HUF business share profits and losses of the families business but they are not called partners as there is no agreement between them.
"THIS SHOWS THAT AGREEMENT IS MUST IN PARTNERSHIP"

(Answer by Bhawna, Kanika and Mansi)