Question

whate is partnership firm?

Answer 1

According to section 4 of The Partnership Act of 1932,"Partnership is defined as the relation between two or more persons who have agreed to share the profits of a business run by all or any one of them acting for all" A partnership firm is not a legal entity apart from the partners constituting it.

I hope this answer was helpful to you........

Thank you

Answer 2

Persons who have entered into partnership with one another to carry on a business are individually called “Partners“; collectively called as a “Partnership Firm”; and the name under which their business is carried on is called the “Firm Name”

A partnership firm is not a separate legal entity distinct from its members. It is merely a collective name given to the individuals composing it. Hence, unlike a company which has a separate legal entity distinct from its members, a firm cannot possess property or employ servants, neither it can be a debtor or a creditor. It cannot sue or be sued by others.

It is only for the sake of convenience that in commercial usage terms like “firm’s property”, “employee of the firm”, “suit against the firm” and so on are used, but in the eyes of the law that simply means “property of the partners”, “employees of the partners” and “a suit against the partners of that firm”.

hope this answer helps you.