How are partnership firms started ? Explain briefly.
Answers
ANSWER :-
➡Generally, to determine whether a
partnership existed, a court will ask whether there was a sharing of profits and losses,
↪joint administration and control of the business, a capital investment by each partner, and common ownership of property.
➡A partnership is defined as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
➡The law does not require writtenpartnership agreement between the partners to form a partnership.
Answer:
A partnership firm doesn't divide legal entity. But according to this act, a firm must be produced via a legal agreement between all the partners.
So this contract must be entered into to form a partnership firm.
Its business activity must be lawful, and the motive should be one of profit.