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As per the Indian Partnership Act, 1932, which of the following results in the relationship of partners?

Buying cotton to sell for their joint account indicates a joint trading venture and the sharing of its profits. Buying goods merely to divide them, or jointly owning a ship,…

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As per the Indian Partnership Act, 1932, which of the following results in the relationship of partners?

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Answer and explanation

Correct answer D

Buying cotton to sell for their joint account indicates a joint trading venture and the sharing of its profits. Buying goods merely to divide them, or jointly owning a ship, does not by itself create partnership. Where one carpenter receives all profits and pays the other wages, the stated arrangement indicates employment rather than partnership.

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