Which of the following statements is true?

Question

Quizplus · Accepted Answer

Sharing of profits and losses is one of the essential elements of a partnership as defined by the Partnership Act, and without it, a partnership cannot exist. While partners may declare that they are in partnership, such a declaration is not sufficient to create a partnership, and the absence of a partnership agreement in writing does not invalidate a partnership. Furthermore, partners in a partnership may have different levels of authority, responsibility, and profit-sharing as defined by the partnership agreement.

Which of the Following Statements Is True