Accountancy Part AAccounting for Partnership

Which of the following is NOT a feature of partnership?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Disagreement

A partnership is built on an agreement between two or more persons to carry on a business, share its profits and act for one another. Disagreement is the opposite of the very thing that creates the firm, so it cannot be one of its features.

Option (1) Two or more persons — A feature of partnership. One person alone cannot form a partnership.
Option (3) Mutual agency — A feature of partnership. Each partner is an agent of the others and binds them by his acts.
Option (4) Sharing of profit — A feature of partnership. The agreement must be to share the profits and losses of the business.

NCERT (2026-27 edition):
Summary – “1. Definition of partnership and its essential features: Partnership is defined as “Relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all”. The essential features of partnership are : (i) To form a partnership, there must be at least two persons; (ii) It is created by an agreement; (iii) The agreement should be for carrying on some legal business; (iv) sharing of profits and losses; and (v) relationship of mutual agency among the partners.”