1. A and B entered into an agreement to carry on a business of manufacturing and selling toys. Each one of them contributed Rs.35 lakhs as their capital with a condition that A and B will share the profits equally but the loss, if any, is to be borne by A alone. Referring to the provisions of the Indian Partnership Act, 1932, decide whether there exists a partnership between A and B.
2. 
   
3. A). There is no partnership between A and B 
4. B).  A is sub-partner of B 
5. C).  There is partnership by holding out 
6. D).  There is partnership between A and B, B is partner in profit only.

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Partnership is a form of business organization in which two or more persons agree to operate a busin... View the full answer