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    Question

    Which of the following is not true about

    partnership?
    A Defined under s.4 Correct Answer Incorrect Answer
    B Unlimited Liability. Correct Answer Incorrect Answer
    C Created by contract. Correct Answer Incorrect Answer
    D A HUF carrying out business is a partnership firm. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Partnership Act  S. 5 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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