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    Question

    Registration of Firm does not create Partnership, but

    is only the evidence of “Partnership:
    A True Correct Answer Incorrect Answer
    B Partly True Correct Answer Incorrect Answer
    C False Correct Answer Incorrect Answer
    D Party False Correct Answer Incorrect Answer

    Solution

    Registration of a partnership firm does not create a partnership. It is merely a legal requirement to register a partnership firm under the Indian Partnership Act, 1932. The Act defines a partnership as "the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all." Therefore, a partnership is created by an agreement between persons who intend to carry on a business together and share the profits. Registration of a partnership firm is only evidence of the partnership and not the creation of it. In other words, if a partnership is created, it exists even if the partnership firm is not registered. However, registration of the firm provides evidence of the partnership, which can be useful in case of disputes or legal issues.

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