Question

Assertion (A): Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.

Reason (R): Partnership agreement should always be in writtem form.

Choose the correct option from the following:

Options

• Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are correct, but Reason (R) is not correct explanation of Assertion (A).

• Assertion (A) is correct, but Reason (R) is incorrect.

• Assertion (A) is incorrect, but Reason (R) is correct.

Answer 1

Assertion (A) is correct, but Reason (R) is incorrect.

Explanation:

A partnership agreement can be oral or written; it is not compulsory to be in writing.