'The business of a partnership concern may be carried on by all the partners or any of them acting for all.'

Which feature of partnership is indicated by the above statement?

The statement refers to the concept where each partner has the authority to act on behalf of the firm and bind all other partners through their actions. This is the principle of Mutual Agency.

Under mutual agency, every partner is:

• An agent of the firm (can represent the firm in business dealings)
• A principal for other partners (is bound by the actions of other partners)

When the statement says "any of them acting for all," it means that even a single partner can conduct business and their actions will be binding on all other partners and the firm, as long as those actions are within the scope of the firm's business.

For example, if Partner A purchases goods for the firm, Partners B, C, and D are all bound by this purchase even though they weren't directly involved in the transaction.

This mutual agency relationship distinguishes partnership from other forms of business organizations. It creates both rights (to act for the firm) and responsibilities (being bound by others' actions) for each partner.

The other options are incorrect because:

• Business simply refers to the commercial activity undertaken
• Agreement refers to the contractual basis of forming a partnership
• Profit sharing relates to distribution of earnings among partners

Correct Option: 3 (Mutual agency)