By virtue of which section of the 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'.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Section 4
"When two or more persons join hands to set up a business and share its profits and losses, they are said to be in partnership. Section 4 of the Indian Partnership Act 1932 defines partnership 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’."