Question

Partnership is formed as a result of ______.

Options

• License from Government

• A central Legislation

• An Agreement among Individuals

• None of these

Answer 1

Partnership is formed as a result of an agreement among individuals.

Explanation:

A partnership is created when two or more people agree to run a business together and share the profits and losses.

• This agreement might be oral or written (the written form is known as a Partnership Deed).
• It is controlled by the Indian Partnership Act (1932).