Partnership comes into existence as a result of an agreement among the partners, that agreement is called .........
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Partnership Deed
A partnership is formed through an agreement among two or more persons to share profits and losses of a business carried on by all or any of them acting for all.
This agreement — whether written or oral — is known as a Partnership Deed.
It contains the terms and conditions of the partnership, such as:
-
Capital contribution of partners
-
Profit and loss sharing ratio
-
Interest on capital or drawings
-
Rights, duties, and obligations of partners