Features of Indian Partnership Act 1932

Features of Partnership Firms According to Indian Partnership Act 1932

• Indian Partnership Act 1932 defines partnership as the relationship between individuals who agree to share profits in a business.
• Features of partnership firms include the number of persons involved in the partnership.
• Profit sharing is a key aspect of partnership firms.
• Unlimited liability is another feature of partnership firms.
• Good faith and honesty are expected in partnership firms.
• Contractual agreement is necessary for partnership firms.
• The Indian Partnership Act 1932 governs partnership firms in India.
• The act defines partnership as a business relationship based on profit sharing.
• The act specifies that partnership can be carried out by all or any of the partners, acting for all.
• The number of persons involved in a partnership can vary.
• Profit sharing is an essential element of partnership firms.
• Partnership firms have unlimited liability, meaning partners are personally liable for the firm's debts.

Test your knowledge of the features of partnership firms according to the Indian Partnership Act 1932, including the number of persons involved, profit sharing, unlimited liability, and contractual agreements.