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Question
Partnership Firm is a trading concern.
Options
Agree
Disagree
MCQ
True or False
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Solution
I Agree with the given statement.
Explanation:
A partnership firm is a trading concern as it is formed with the objective of carrying out business and earning profits. In a partnership, two or more individuals come together to conduct business activities, share profits, and bear losses as per the agreed ratio. Since trading concerns are those engaged in buying and selling goods or services for profit, a partnership firm qualifies as one.
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Chapter 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.1 (Objective Questions) [Page 53]
