Which of the following is not the feature of partnership:

According to the Indian Partnership Act, 1932, a partnership is defined as "the relation between persons who have agreed to share the profits and losses of a business carried on by all or any of them acting for all."

Let's examine each option:

Option 1 correctly states that at least two persons must come together with a common objective to form a partnership (maximum 50 for regular business, 100 for banking business).

Option 2 states that partners share "profits only" - this is incorrect. Partnership involves sharing of both profits and losses in the agreed ratio. Partners cannot choose to share only profits while avoiding losses. This mutual sharing of gains and losses is a fundamental characteristic of partnership.

Option 3 correctly describes the principle of mutual agency, where any partner can act on behalf of the firm and bind all other partners through their actions in the ordinary course of business.

Option 4 correctly states that both profits and losses are distributed among partners according to their profit-sharing ratio (in absence of an agreement, they share equally).

The key distinction is that partnership is not just about sharing profits - it inherently involves sharing both profits and losses. Option 2 misrepresents this essential feature by mentioning profits only, making it the incorrect statement about partnership features.