Which of the following is not a feature of a partnership?
- AThere should be at least two persons coming together for a common goal.
- BPartnership is the result of an agreement between two or more persons to do business and share its profits only.
- CThe business of a partnership concern may be carried on by all the partners or any of them acting for all.
- DThe business profits and losses are shared by all the partners as per profit sharing ratio.
Solution & Step-by-step Explanation
According to Section 4 of the Indian Partnership Act, 1932, a partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.While sharing of profit is an essential feature, partners also generally share losses unless agreed otherwise. More importantly, an agreement to share only profits does not define the absolute restriction of partnership features, and option B states that it is an agreement to "share its profits only" which is misleading or incorrect as a restrictive rule, making it the correct option for a feature that is NOT true in its absolute sense compared to statutory characteristics.