Question

In the absence of agreement, partners are not entitled to ______.

Options

• Salary

• Commission

• Equal share in profit

• Both Salary and Commission

Answer 1

In the absence of agreement, partners are not entitled to both salary and commission.

Explanation:

In the absence of a partnership agreement, the Indian Partnership Act, 1932, applies. According to it, partners are not entitled to salary or commission, but they are entitled to share profits equally.