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Which of the following is not an essential feature of partnership?
1 . Agreement
2 . Registration
3 . Test of Mutual Agency
4 . Separate Legal Entity
- a)1 & 2
- b)2 & 3
- c)2 & 4
- d)1 & 4
Correct answer is option 'C'. Can you explain this answer?
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Which of the following is not an essential feature of partnership?1 . ...
Essential Features of Partnership
Partnership is a type of business organization in which two or more persons come together to carry out a business with the aim of earning profits. The essential features of partnership are as follows:
1. Agreement: Partnership is based on an agreement between two or more persons. The agreement can be oral or written.
2. Test of Mutual Agency: One of the essential features of partnership is the test of mutual agency. This means that each partner can act on behalf of the partnership and bind it to a contract.
3. Sharing of Profits and Losses: Partnership involves the sharing of profits and losses among the partners. The sharing ratio can be equal or unequal.
4. Joint Ownership and Management: In partnership, the partners jointly own and manage the business. They have equal say in the decision-making process.
5. Unlimited Liability: Each partner has unlimited liability for the debts and obligations of the partnership. This means that they are personally liable for the debts of the partnership.
6. Registration: Partnership can be registered or unregistered. However, registration is not an essential feature of partnership.
Option C is the correct answer as registration is not an essential feature of partnership. While it is advisable to register a partnership for legal and tax purposes, it is not mandatory. The other options, such as agreement, test of mutual agency, and separate legal entity, are essential features of partnership.
Partnership is a type of business organization in which two or more persons come together to carry out a business with the aim of earning profits. The essential features of partnership are as follows:
1. Agreement: Partnership is based on an agreement between two or more persons. The agreement can be oral or written.
2. Test of Mutual Agency: One of the essential features of partnership is the test of mutual agency. This means that each partner can act on behalf of the partnership and bind it to a contract.
3. Sharing of Profits and Losses: Partnership involves the sharing of profits and losses among the partners. The sharing ratio can be equal or unequal.
4. Joint Ownership and Management: In partnership, the partners jointly own and manage the business. They have equal say in the decision-making process.
5. Unlimited Liability: Each partner has unlimited liability for the debts and obligations of the partnership. This means that they are personally liable for the debts of the partnership.
6. Registration: Partnership can be registered or unregistered. However, registration is not an essential feature of partnership.
Option C is the correct answer as registration is not an essential feature of partnership. While it is advisable to register a partnership for legal and tax purposes, it is not mandatory. The other options, such as agreement, test of mutual agency, and separate legal entity, are essential features of partnership.
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Which of the following is not an essential feature of partnership?1 . Agreement2 . Registration3 . Test of Mutual Agency4 . Separate Legal Entitya)1 2b)2 3c)2 4d)1 4Correct answer is option 'C'. Can you explain this answer?
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