The Indian Partnership Act, 1932 governs partnership formation and operation. Introduction: Partnership is association of persons to carry on business with view to profit (Section 4). Key sections: 1-75 cover definitions, formation, rights/duties, registration, and dissolution. Essentials: (1) Two or more persons; (2) Business venture; (3) View to profit; (4) Mutual agreement. Partnership differs from joint venture (temporary), co-ownership (not business), and company (separate entity). The Act applies unless parties exclude by agreement. Partnership carries unlimited liability for partners. Partnerships commonly seen in accounting firms, law practices, and trading businesses. For accountants, partnership structure affects liability exposure, tax treatment (partnership is not tax entity), and statutory compliance. IRAC application: Identify if elements present, apply sections, assess partner liability. Exam tip: Distinguish partnership from other associations; understand that partnership doesn't create separate legal entity; partners jointly liable for firm acts.