Question

Which of the following is not an essential feature of partnership?

• A. It has at least two persons.
• B. An agreement exists between/among all the partners.
• C. Profits and losses are shared equally.
• D. Agreement is for a business.

Hint:

Partnership requires: \[ \text{profit sharing} \] but not necessarily: \[ \text{equal profit sharing} \]

Answer 1

The Correct Option is C

A partnership firm is governed by the: \[ \text{Indian Partnership Act, 1932} \] The essential features of partnership are:
• There must be at least two persons.
• There must be an agreement among partners.
• The agreement must be for carrying on a lawful business.
• Profit-sharing must exist.
• Business should be carried on by all or any one acting for all. However: \[ \text{equal sharing of profits and losses is not compulsory} \] Partners may share profits and losses:
• Equally
• In agreed ratio
• According to partnership deed Thus: \[ \text{equal sharing is not an essential feature} \] Option analysis:
• Option (A): Essential feature
• Option (B): Essential feature
• Option (C): Correct
• Option (D): Essential feature Therefore: \[ \boxed{\text{(C)}} \]