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easyMCQCUET Accountancy 2025 14 May Shift 22026Accountancy
1 mark

Which of the following is NOT a general feature of a partnership firm?

  1. A
    In order to form a partnership, there should be at least two persons coming together for a common goal.
  2. B
    Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.
  3. C
    The agreement should be to carry on some business.
  4. D
    Liability of partners is limited to the extent of capital contribution.

Solution & Step-by-step Explanation

In a standard partnership firm governed by the Indian Partnership Act, 1932, the liability of the partners is unlimited. This means that their personal assets can be liquidated to pay off the debts of the firm if the business assets fall short. Therefore, Option D is a false statement and not a general feature.

Practice this question

Try it yourself before checking the explanation above.

Which of the following is NOT a general feature of a partnership firm?
A
In order to form a partnership, there should be at least two persons coming together for a common goal.
B
Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.
C
The agreement should be to carry on some business.
D
Liability of partners is limited to the extent of capital contribution.

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