Question

Which is not a feature of partnership business?

Answer 1

Explanation:

❤Sharing Profit:❤

And for this there must be an agreement to share the profit and losses of the firm's business. Sharing profit is not a real test of partnership, the employees, creditors also share the profit but cannot be called partners in the absence of agreement of partnership.

Answer 2

Limited liability

• Partners are responsible for one another's conduct. It does not always occur in businesses when employees are held personally accountable for their conduct.

• Profits must be shared among partners. Profits do not always have to be shared with shareholders.

• Unlike sole proprietorships, where the owner and the business are considered equally, a general partnership can be a legally recognized entity.

• Some type of business must be conducted by the partnership firm. Companies, on the other hand, can establish only for charitable purposes.