There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: Partnership Deed is a legal document signed by all the partners.
Reasoning: Any type of charitable institution running as a not-for-profit organization will not be considered as a business.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Partnership deed is a legal document in writing and all partners are required to sign it. An important element of partnership is that, the agreement between partners must be to share profits and losses of a business. Though the definition contained in the Partnership Act describes partnership as relation between people who agree to share the profits of a business, the sharing of loss is implied. Thus, sharing of profits and losses is important. If some persons join hands for the purpose of some charitable activity, it will not be termed as partnership. Thus, both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.