Which of the following is not a feature of partnership as per Partner…

Which of the following is not a feature of partnership as per Partnership Act 1932 ?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Limited Liability

A partnership is a relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Its partners are liable without limit: their private assets can be used to pay the firm’s debts. So limited liability is not a feature of a partnership.

Option (1) Two or more partners — A feature of a partnership firm. A partnership needs at least two persons.
Option (2) Partnership is the result of an agreement to do business and share its profits and losses. — A feature of a partnership firm. It arises from agreement, oral or written, not from status.
Option (3) A partnership concern business may be carried on by all the partners or any of them acting for all. — A feature of a partnership firm. This is mutual agency: each partner acts for and binds the others.

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.”

NCERT (2026-27 edition):
Nature of Partnership – “… 6. Liability of Partners: Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner. Not only that the liability of a partner for acts of the firm is also unlimited. This implies that his private assets can also be used for paying off the firm’s debts.”

Which of the following is not a feature of partnership as per Partnership Act 1932 ?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Limited Liability

Option (1) Two or more partners — A feature of a partnership firm. A partnership needs at least two persons.
Option (2) Partnership is the result of an agreement to do business and share its profits and losses. — A feature of a partnership firm. It arises from agreement, oral or written, not from status.
Option (3) A partnership concern business may be carried on by all the partners or any of them acting for all. — A feature of a partnership firm. This is mutual agency: each partner acts for and binds the others.