Question

State important features of partnership. 5 marks question.​

Answer 1

Dear student,

Following are features of partnership firm.
1) There should be minimum two and maximum twenty partner (ten in case of banking business) in a firm.
2) There is an agreement to share profit and losses of business.
3) It is an outcome of agreement between partners to carry on a business. An agreement may be oral or written.
4) The right of ownership and control vests with partners.
5) No partner can transfer his interest without consent of all partners.
6) The registration of firm is not mandatory however it is advisable to get it registered.

Regards