Practicing Success
Read the given below two statements and mark the correct answer. Assertion (A): A partnership deed serves as a crucial document in a partnership agreement. Reason (R) : It outlines the terms, conditions, and all aspects concerning the partners, thereby preventing misunderstandings among the partners and providing evidence of the agreed-upon conditions. |
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). Assertion (A) is true but Reason (R) is False Assertion (A) is false but Reason (R) is true |
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). |
The correct answer is option 1- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). In this case, the assertion is that a partnership deed is a crucial document in a partnership agreement. This is true because a partnership deed outlines the terms, conditions, and all aspects concerning the partners, serving as a foundational document for the partnership. The reason provided that the partnership deed prevents misunderstandings among the partners and provides evidence of the agreed-upon conditions. The detailed terms and conditions laid out in the partnership deed help to clarify the rights, responsibilities, and expectations of each partner, thus minimizing the likelihood of misunderstandings. |