Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Planning

Question:

Which of the following is NOT the characteristic of partnership?

Options:

Mutual Agency

Profit Sharing

Artificial Person

Unlimited Liability

Correct Answer:

Artificial Person

Explanation:

The correct answer is option (3) - Artificial Person

The characteristic of partnership that is NOT correct is "Artificial Person."

In a partnership, the business entity is not considered an artificial person. Instead, a partnership is often seen as a relationship or association between individuals who come together to carry on a business. The concept of an artificial person is more closely associated with entities like corporations. The other characteristics listed (Mutual Agency, Profit Sharing, and Unlimited Liability) are commonly associated with partnerships.