At least two persons
There is an agreement between all partners
Equal share of profit and loss
Partnership agreement is for some business
Answer is Right!
Answer is Wrong!
The correct answer is C. Equal share of profit and loss.
A partnership is a business owned by two or more people. The essential elements of a partnership are:
- At least two persons. A partnership can only be formed by two or more people.
- There is an agreement between all partners. This agreement, called a partnership agreement, sets out the terms of the partnership, such as the division of profits and losses, the management of the business, and the rights and responsibilities of the partners.
- The partnership agreement is for some business. A partnership must be formed for the purpose of carrying on a business.
The equal sharing of profit and loss is not an essential element of a partnership. The partners can agree to share profits and losses in any way they choose. For example, they can agree to share profits and losses equally, or they can agree to share profits and losses in proportion to their capital contributions.
In conclusion, the correct answer is C. Equal share of profit and loss. The other options are all essential elements of a partnership.