There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: Partnership is 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.
Reasoning: There is no specific definition of partnership in the Partnership Act 1932.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Assertion (A) is true but Reasoning (R) is not correct.
Assertion: Partnership is 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. This is true.
Reasoning: There is no specific definition of partnership in the Partnership Act 1932. This is not true. The definition of partnership is provided in the partnership act 1932. 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’.