Question

Assertion (A): Co-ownership of property amounts to partnership.

Reason (R): The element of business is present in co-ownership.

In the context of the above two statements, which of the following is correct?

Options

• Both (A) and (R) are correct and (R) is correct reason for (A).

• Both (A) and (R) are incorrect.

• (A) is correct but (R) is incorrect.

• Both (A) and (R) are correct but (R) is not the correct reason for (A).

Answer 1

Both (A) and (R) are incorrect.

Explanation:

Co-ownership of property and the element of business do not constitute partnership in this context. The decision to start a firm is made by the partners.