A, B and C are partners running business of medicines. 'A', without the knowledge of other partners is also running a business of supplying medicines to a few chemists. He is getting good profits from this parallel business. Is 'A' correct in doing this business and who should share the profit of this business?

No, all partners

The correct answer is option 2- No, all partners.

Doing parallel business is not correct and if he is doing it, he has to share the profits of it with other partners.

* The Indian Partnership Act specifies that subject to contract between the partners:

1. If a partner derives any profit for him/her self from any transaction of the firm or from the use of the property or business connection of the firm or the firm name, he/she shall account for the profit and pay it to the firm.
2. If a partner carries on any business of the same nature as and competing with that of the firm, he/she shall account for and pay to the firm, all profit made by him/her in that business.