Question

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

Answer 1

The correct option is C 2 & 4

Partnership firm is all about a mutual agreement between various persons to carry out a business.

Agreement is must for any kind of partnership since it defines all the terms and conditions to be applied. Along with it mutual agency test must be there so that the compatibilityof every partner can be checked for future benefits.

It is not mandatory for any partnership to get registered since small business find it costly to register themselves. And separate legal entity is not possible with a partnerrship because the business and the owner are same in this case.