Question

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

Options

• There must be an agreement.

• There must be a business.

• The business must be carried on for profits.

• The business must be carried on by all the partners.

Answer 1

The business must be carried on by all the partners.

Explanation:

In a partnership, it is not necessary for all partners to be involved in the daily operations or management of the business. Partners can choose to be active or sleeping partners, where the sleeping partners contribute capital but do not take part in the business management.