Fundamentals Of Partnership

Step 1: Understanding the essential elements of a partnership.
A partnership firm must satisfy the following essential elements:
1. There must be at least two partners.
2. There should be an agreement between all partners.
3. The partnership agreement must be for some business.
4. Sharing profits and losses may vary as per the agreement; equal sharing is not mandatory.

Step 2: Identifying the incorrect statement.
Option (C), "Equal share of profit and loss," is incorrect because the share of profit and loss depends on the agreement between partners. Equal sharing is not essential.