Question

introduction to partnership

Answer 1

Such partnerships agree to share profit and losses in a ratio agreeable to all of the partners. This leads to formation of a partnership firm. A partnership firm will involve bringing together resources such as financial, technical, and other skill sets in the view to carry on a business.

Answer 2

The Indian Partnerships have the following common characteristics: 1) A partnership firm is not a legal entity apart from the partners constituting it. It has limited identity for the purpose of tax law as per section 4 of the Partnership Act of 1932. 2) Partnership is a concurrent subject.