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Under the Indian Partnership Act, 1932, receipt of a share of profits by a previous owner as…

Explanation 2(d) to section 6 provides that receipt of a share of profits by a previous owner or part-owner of a business, given as consideration for the sale of goodwill,…

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Under the Indian Partnership Act, 1932, receipt of a share of profits by a previous owner as consideration for sale of goodwill:

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Correct answer B

Explanation 2(d) to section 6 provides that receipt of a share of profits by a previous owner or part-owner of a business, given as consideration for the sale of goodwill, does not of itself make him a partner in the buyer's business.

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