Which of the following is not a feature of partnership ?

The correct answer is Option (3) → Separate Legal Entity

When people join hands in a partnership, the “firm” is only the common name under which they do business together. In law and in accounts it has no existence of its own apart from the partners: the firm’s debts are finally the partners’ debts. A separate legal entity is a feature of a company, which the law treats as a person distinct from its members.

• Option (1) Mutual Agency — A feature of partnership. Each partner is both an agent and a principal: he can bind the other partners by his acts and is bound by theirs.

• Option (2) Business — A feature of partnership. The agreement must be to carry on a business; mere joint ownership of a property, or a charitable activity, is not a partnership.

• Option (4) Agreement — A feature of partnership. A partnership is created by an agreement between two or more persons, oral or written.