Essential elements or main features of Partnership:
i) Two or more
persons: Partnership is an association of two or more persons.
ii) Agreement:
The Partnership is established by an agreement either oral or in writing.
iii) Lawful
Business: A Partnership formed for the purpose of carrying a business, it must
be a legal business.
iv) Profit sharing:
Profit of the firm is share by the partners in an agreed ration, if the ratio
is not agreed then equally. Profit also includes loss.
