What is a Partnership in Business?

What is required to form a partnership?

What best describes mutual agency in a partnership?

Which of the following characterizes the liability of partners in a partnership?

What is the significance of having a written partnership agreement?

What does the term 'firm name' refer to in the context of a partnership?

What type of business activities can form a partnership?

Which Act governs partnerships in India?

Which of the following is NOT a key feature of a partnership?

What is a crucial element for something to be considered a partnership?

What could happen to a partner's personal assets in case of business debts?

A partnership is formed when two or more people decide to start and run a business together.
Partners share the profits and losses that the business makes.

A partnership requires at least two people, with a maximum of 50 in India.
A partnership is based on an agreement, which can be written or verbal, outlining how the business will be run, profit sharing, and other important details.
The agreement must be about running a business, not just owning assets together.
Mutual agency allows each partner to act on behalf of the whole partnership, making business deals binding on all partners.
Partners must agree to share both profits and losses of the business.

Each partner is fully responsible for the debts of the partnership, which means their personal assets can be used to pay off business debts if the business can't afford to.
This is known as unlimited liability.

A partnership is not seen as a separate legal "person" from the partners themselves, unlike a company.
The name under which the business operates is called the firm's name.
In India, the Indian Partnership Act 1932 governs how partnerships work, especially in cases of disagreements or unclear areas in the partners' agreement.