Question

What are the essential features of partnership are ______?

Options

• In order to form a partnership, there should be at least two persons coming together for a common goal.

• A partnership is the result of an agreement between two or more persons to do business and share its profits and losses.

• The agreement should be to carry on some business. Mere co-ownership of property does not amount to a partnership.

• All of the above

Answer 1

All of the above

Explanation:

1. Two or More People: In order to form a partnership, at least two people must come together to achieve a common purpose. In other words, a firm's minimum number of partners is two. However, there is a limit to how many they can have.
2. Agreement: A partnership is formed when two or more people agree to do business together and share profits and losses. The agreement serves as the foundation for the partners' relationship.
3. Mutual Agency: A partnership's business may be conducted by all of the partners or by any of them acting on behalf of all. This remark has two significant consequences.
4. Sharing of profit: Another important aspect of a partnership is that the partners must agree to share the business's revenues and losses.