what is the definition of partnership firm?
Answer (1)
24th Aug, 2022
Hello aspirant,
According to the section 4 of Indian partnership act, 1932 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’.
In a partnership firm, two or more people join forces to start a business and distribute the earnings equitably. Any type of business, trade, or profession falls under the umbrella of a partnership. Compared to corporations, a partnership firm is simpler to establish and requires less compliances.
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