Multiple choice

Which of the following is/are essential feature(s) of partnership?

  1. Registration

  2. Partnership deed

  3. Test of mutual agency

  4. Separate legal entity

  5. All of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option (1) is incorrect: Registration is optional for partnership. Option (2) is incorrect: A partnership may come into existence without writing partnership deed. Option (3) is correct: Mutual agency is required to determine the partnership. Mutual agency is the legal relationship between partners in a partnership, where each partner has authorisation powers and the ability to enter the partnership into business contracts. Option (4) is incorrect: Partnership is not a separate legal entity from its partners.

Keep practicing — related questions