Partnership-Relation between persons who have agreed to share the profits of a business carried out by all or any of them functioning for all. Firm-Persons who have entered into partnership with one another are called individually "partners" and jointly a "firm", and the name under which their business is carried on is called the "firm name". Partnership firms- are those firms having relation between its partners who have agreed to share the profits of a business carried out by all or any of them functioning for all