Question

Which of the following is a right of a partner?

1. Sharing profits and losses with other partners in the agreed ratio.
2. Inspecting and having a copy of the books of accounts.
3. Retiring from the firm without giving proper notice.
4. Taking part in the conduct of the business.

Choose the correct option:

Options

• Only (ii) and (iv)

• Only (i) and (iv)

• Only (i) and (ii)

• Only (i) (ii) and (iv)

Answer 1

Only (i) (ii) and (iv)

Explanation:

A partner has the right to share profits and losses as agreed, to inspect and take copies of the books, and to participate in the conduct of the business; these flow from mutual agency and the fiduciary nature of partnership. But a partner cannot simply retire without proper notice; retirement must follow the partnership deed or, in a partnership at will, require written notice to all partners.