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easyMCQCUET Accountancy 2025 3 June Shift 22026Accountancy
1 mark

Which among the following is NOT true?

  1. A
    Valid partnership can be formulated even without a written agreement between the partners.
  2. B
    Each partner carrying on the business is the principal as well as the agent for all the other partners.
  3. C
    The agreement may carry or not on any business. Mere co-ownership of a property can amount to partnership.
  4. D
    Persons who have entered into partnership with one another are individually called 'partners' and collectively called 'firm'.

Solution & Step-by-step Explanation

Co-ownership of property does not by itself constitute a partnership because there must be an agreement to carry on a business with the motive of earning and sharing profits. Therefore, Statement C is false and the correct answer.

Practice this question

Try it yourself before checking the explanation above.

Which among the following is NOT true?
A
Valid partnership can be formulated even without a written agreement between the partners.
B
Each partner carrying on the business is the principal as well as the agent for all the other partners.
C
The agreement may carry or not on any business. Mere co-ownership of a property can amount to partnership.
D
Persons who have entered into partnership with one another are individually called 'partners' and collectively called 'firm'.

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PartnershipAccountingPrinciples of Partnership

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