The need for partnership form of organization arose from the limitations of sole proprietor.

In sole proprietorship, financial resources and managerial skills are limited.

partner, firm, firm name:

person who enter into partnership are individually called ‘partnered ans collectively called ‘a form and the name under which the business is carried on is called “firm name’.

features of partnership:

  1. Agreement
  2. Multiplicity of person
  3. Sharing of profits
  4. Agency relationship
  5. Lawful business
  6. Contractual relationship
  7. Unlimited liability
  8. joint and several liability
  9. No separate legal entity
  10. Implied agency.

Types of partnership firm:

1.general partnership-( partnership-at-will

Particular Partnership

Joint venture).

A partnership in which the liability of all the partners is unlimited is known as unlimited partnership. partnership:

A partnership in which the liability of the partners is limited is called limited partnership.

Duties of parnters.

*. Absolute duties

*. Qualified duties.

kinds of parnters:

*managerial interst: divided into

active parnters

sleeping partner

*Profits sharing: divided into

nominal parnters

parnters in profits only

*behavior:divided into

parnters by estoppel

parnters by holding out

secret parnters

*status: divided into

minor parnters

sun parnters.

Advantage and disadvantages of partners:

partnership deed:

a partnership firm can be formed through an agreement among two or more person. In India this agreement may be oral or in writing.