The Partnership deed is............. for the partnership firm.

Desirable

The correct answer is option 2- Desirable.

Partnership deed is not compulsory for the firm to make. It all depends on the firm whether they want it in written form or not. But it is desirable to avoid or settle any disputes.

Partnership is the result of an agreement between two or more persons to do business and share its profits and losses. The agreement becomes the basis of relationship between the partners. It is not necessary that such agreement is in written form. An oral agreement is equally valid. But in order to avoid disputes, it is preferred that the partners have a written agreement