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Forms of Business Organization
Question
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Explain the characteristics of parntership businesses. 

Answer

The characteristics of a Partnership business  are as follows :

1. Number of members: 
A minimum of two or more persons are required for starting a partnership business. 

2. Sharing of profit : 
Partnership should be carried for profit motive. Partnerships for religious purposes are not included under the Partnership Act.

3. Agency relationship :
Principal-agent relationship is must in the partnership, where each partner acts as an agent of the firm. 

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