Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
Which among the following is not a characteristic of a partnership firm?
Options:
Easy formulation
Mutual consent
Equal profits
Limited liability
Correct Answer:
Limited liability
Explanation:
Limited liability is not a characteristic of a partnership firm as the partners involved have unlimited liability which means their private assets can be used for paying firm debts.