Question:
Write any two characteristics of partnership.
Write any two characteristics of partnership.
Show Hint
Remember: partnership is formed by agreement and involves sharing of profits and responsibilities.
Updated On: Nov 30, 2025
Show Solution
Verified By Collegedunia
Solution and Explanation
A partnership includes several important characteristics. First, it is formed by an agreement between two or more persons who agree to share profits and losses of a business. Second, partners contribute capital and participate in management according to the terms of the agreement. Third, the business is based on mutual trust and cooperation among partners. Fourth, liability of partners is generally unlimited, meaning partners are personally responsible for debts of the firm. Any two of these characteristics explain the essential nature of a partnership and show how partners work together to operate the business effectively.
Was this answer helpful?
0
0
Top MPBSE Class XII Board Book-Keeping & Accountancy Questions
- To which activity does the payment of dividend belong?
- Which ratios are primarily measures of return?
- Which ratios provide information critical to the long-run operation of the firm?
- Preparation of financial statements of a company is:
- On admission of a partner, the general reserve in the old balance sheet is transferred to:
View More Questions
Top MPBSE Class XII Board Partnership Accounting Questions
- On admission of a partner, the general reserve in the old balance sheet is transferred to:
- Interest on partner's drawings in the absence of a partnership deed is:
- Which account is also prepared along with capital account in fixed capital method?
- How much interest is payable on the loan of a partner in the absence of partnership deed?
- On the death of a partner, his claim is transferred to which account?
View More Questions
Top MPBSE Class XII Board Questions
- What is the Market Economy?
- What is positive economics analysis?
- What is profit?
- What is average product?
- Write three relationships between total utility and marginal utility.
View More Questions