CUET Preparation Today
Can partners receive salary or remuneration for their involvement in the firm's business? |
Yes, all partners are entitled to a fixed salary No, partners cannot receive any form of remuneration Yes, but only if specified in the partnership deed No, partners can only receive profits as their compensation |
Yes, but only if specified in the partnership deed |
The correct answer is option 3- Yes, but only if specified in the partnership deed. If the partnership deed provides for the salary then it is allowed to partners otherwise not. As per the Indian Partnership Act, 1932, partners are not entitled to salary or remuneration by default. However, if the partnership deed specifically allows for salary or remuneration, then it is permitted. Remuneration for Firm’s Work: No partner is entitled to get salary or other remuneration for taking part in the conduct of the business of the firm unless there is a provision for the same in the Partnership Deed. |
