Section 4 of IPA : Section 4: Definition Of ?Partnership?, ?Partner?, ?Firm? And ?Firm Name?

Explanation using Example

Imagine Rita, Suresh, and Anil decide to start a business together where Rita will contribute the capital, Suresh will manage the day-to-day operations, and Anil will handle the marketing. They agree to share the profits in a specific ratio. According to Section 4 of The Indian Partnership Act, 1932, this arrangement makes them partners in a partnership. They are individually referred to as partners and collectively known as a firm. They decide to operate under the name "RS Innovations," which is their firm name.