BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A document that states what product a business sells
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A type of business
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A business book
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A legal document
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Detailed explanation-1: -What is called a partnership deed? Partnership deed is a written legal document that contains an agreement made between two individuals who have the intention of doing business with each other and share profits and losses. It is also called a partnership agreement.
Detailed explanation-2: -A partnership deed is an agreement between two or more individuals who sign a contract to start a profitable business together. They agree to be the co-owners, distribute responsibilities, income or losses for running a business.
Detailed explanation-3: -When the partnership agreement is written and signer by all the partners, it is called Partnership Deed or Articles of Partnership. The partnership deed is not a public document like the Memorandum of Association of a company.
Detailed explanation-4: -As per Partnership Act 1932 it is not necessary that a partnership agreement must be in writing but still it is always suggested that it should be in written form.
Detailed explanation-5: -As per the Indian Partnership Act, 1932, it is not compulsory to register a partnership firm as the firm does not have a separate legal entity. However, having a registration will make it definite that the firm exists legally.