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    Question

    Which of the following is not true about

    partnership?
    A Defined under s.4 Correct Answer Incorrect Answer
    B A HUF carrying out business is a partnership firm. Correct Answer Incorrect Answer
    C Not Created by status Correct Answer Incorrect Answer
    D Created by contract Correct Answer Incorrect Answer

    Solution

    Section 4 and 5 of Partnership Act Section4 DEFINITION OF "PARTNERSHIP", "PARTNER", "FIRM" AND "FIRM-NAME".  "Partnership" is 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.  Persons who have entered into partnership with one another are called individually, "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm-name".  Section5 PARTNERSHIP NOT CREATED BY STATUS.  The relation of partnership arises from contract and not from status; and, in particular, the members of a Hindu undivided family carrying on a family business as such, or a Burmese Buddhist husband and wife carrying on business as such are not partners in such business.  

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