State three distinctive features of partnership

The three features of partnership are
(i) Membership There must be minimum two members to form the partnership firm. Maximum there can be twenty members. In case of banking business, maximum members can be only ten.
(ii) Lawful Business with Profit Motive It can be formed with a view to undertake lawful
business activity. The partnership can be formed only for profit motive. Thus, two persons coming together for charitable purposes will not constitute a partnership.
(iii) Liability The liability of all the members of partnership firm is unlimited. The partners are individually and collectively liable to pay back the debts of the firm. At the time of loss if firm’s assets are not sufficient to pay back the debts then the creditors can have claim over the personal property of the partners also.