CUET Preparation Today
Which among the following is NOT true about the Partnership? |
Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner. Partnership is the result of an agreement between two or more persons to do business and share their profits and losses. If persons join hands for the purpose of some charitable activity it can be termed as partnership. The minimum number of partners in a firm can be two. |
If persons join hands for the purpose of some charitable activity it can be termed as partnership. |
The correct answer is Option (3) → If persons join hands for the purpose of some charitable activity it can be termed as partnership. Partnership requires 'Business': Charitable activities, social work, or non-profit ventures, while involving two or more people, are not considered a "business" in the legal sense of a partnership because their primary goal is not to earn and share profit. Hence, if persons come together only for a charitable activity (not for profit motive), it cannot be termed as a partnership. |
