2. A partnership is a voluntary
association of two or more
persons to contribute
money, property, time and
skill to carry on business for
profit and losses.
3. Legal Entity
Agreement
Number Of
Partners
Existence of
business
Sharing Of
Profits
Capital
Utmost Faith
Management
Control
Transfer Of
Ownership
Duration
4. ADVANTAGES
Easy Formation
Better
Management
More Participation
Skilled Employees
Public Relation
Business secrets
Spirit Of
Cooperation
Personal
supervision
Easy Dissolution
Flexibility
5. Unlimited
Liability
Risk Of
Dissolution
Possibility Of
Disagreement
No Transfer Of
Ownership
Lack Of Authorit
Lack of harmony
Lack Of Secrecy
Loss of
opportunity
Possibility of
fraud
6. Active partner
Sleeping partner
Nominal partner
Senior partner
Junior partner
Partners in profit only
Secret partner
Minor partner
7. Right to take part
in business
Right to express
opinion
Right to inspect
books
Right to share
profits
Right to interest
on advances
Right to act in
emergency
Right to give
consent
Right to retire
Right to enforce
8. Duty to carry on
business
Duty to be just
and faithful
Duty to render
accounts
Duty to provide
information
Duty to attend
diligently
Duty to share
losses
Duty not to
transfer right
Duty to use firm’s
property for firm
