Power point presentation On Partnership

1. PARTNERSHIP
FUNDAMENTALS OF MANAGEMENT &
ORGANIZATIONAL BEHAVIOUR
PRESENTED BY-
DEPARTMENT: BACHELOR OF BUSINESS
ADMINISTRATION
YEAR:1ST, SEM:1
NAME: SOUMYAJIT BANERJEE
STUDENT CODE: BWU/BBA/18/020

2. CONENTS
• WHAT IS PARTNERSHIP
• MAIN FEATURES
• TYPES OF PARTNERSHIP
• GENERAL PARTNERSHIP
• LIMITED PARTNERSHIP
• LIMITED LIABILITY PARTNERSHIP
• PARTNERSHIP WITH A FIXED TERM
• JOINT VENTURE
• TYPES OF PARTNERS
• ADVANTAGES OF PARTNERSHIP
• DISADVANTAGES OF PARTNERSHIP

3. WHAT IS PARTNERSHIP?
• A partnership is a formal arrangement in
which two or more parties cooperate to
manage and operate a business.

4. Main Features:
• 1. MORE PERSONS:
AS AGAINST PROPRIETORSHIP, THERE SHOULD BE AT LEAST TWO PERSONS SUBJECT TO A MAXIMUM OF TEN
PERSONS FOR BANKING BUSINESS AND TWENTY FOR NON-BANKING BUSINESS TO FORM A PARTNERSHIP FIRM.
• 2. PROFIT AND LOSS SHARING:
THERE IS AN AGREEMENT AMONG THE PARTNERS TO SHARE THE PROFITS EARNED AND LOSSES INCURRED IN
PARTNERSHIP BUSINESS.
• 3. CONTRACTUAL RELATIONSHIP:
PARTNERSHIP IS FORMED BY AN AGREEMENT-ORAL OR WRITTEN-AMONG THE PARTNERS.
• 4. EXISTENCE OF LAWFUL BUSINESS:
PARTNERSHIP IS FORMED TO CARRY ON SOME LAWFUL BUSINESS AND SHARE ITS PROFITS OR LOSSES. IF THE
PURPOSE IS TO CARRY SOME CHARITABLE WORKS, FOR EXAMPLE, IT IS NOT REGARDED AS PARTNERSHIP.
• 5. UTMOST GOOD FAITH AND HONESTY:
A PARTNERSHIP BUSINESS SOLELY RESTS ON UTMOST GOOD FAITH AND TRUST AMONG THE PARTNERS.
• 6. UNLIMITED LIABILITY:
LIKE PROPRIETORSHIP, EACH PARTNER HAS UNLIMITED LIABILITY IN THE FIRM. THIS MEANS THAT IF THE
ASSETS OF THE PARTNERSHIP FIRM FALL SHORT TO MEET THE FIRM’S OBLIGATIONS, THE PARTNERS’ PRIVATE
ASSETS WILL ALSO BE USED FOR THE PURPOSE.
• 7. RESTRICTIONS ON TRANSFER OF SHARE:
NO PARTNER CAN TRANSFER HIS SHARE TO ANY OUTSIDE PERSON WITHOUT SEEKING THE CONSENT OF ALL
OTHER PARTNERS.
• 8. PRINCIPAL-AGENT RELATIONSHIP:
THE PARTNERSHIP FIRM MAY BE CARRIED ON BY ALL PARTNERS OR ANY OF THEM ACTING FOR ALL. WHILE
DEALING WITH FIRM’S TRANSACTIONS, EACH PARTNER IS ENTITLED TO REPRESENT THE FIRM AND OTHER
PARTNERS. IN THIS WAY, A PARTNER IS AN AGENT OF THE FIRM AND OF THE OTHER PARTNERS.

5. TYPES OF PARTNERSHIPS
TYPES OF
PARTNERSHIPS
GENERAL
PARTNERSHI
PS
LIMITED
PARTNERSHI
PS
LIMITED
LIABILITY
PARTNERS
HIPS
(LLP)
PARTNER
SHIP
AT
WILL
PARTNERSHIP
WITH
A FIXED TERM
JOINT
VENT
URES

6. GENERAL PARTNERSHIP
• A GENERAL PARTNERSHIP IS AN
ARRANGEMENT BY WHICH TWO OR
MORE PERSONS AGREE TO SHARE IN
ALL ASSETS, PROFITS AND FINANCIAL
AND LEGAL LIABILITIES OF A
BUSINESS.

7. LIMITED PARTNERSHIP
• A LIMITED PARTNERSHIP (LP) IS A FORM
OF PARTNERSHIP SIMILAR TO A GENERAL
PARTNERSHIP EXCEPT THAT WHILE A GENERAL
PARTNERSHIP MUST HAVE AT LEAST TWO GENERAL
PARTNERS (GPS), A LIMITED PARTNERSHIP MUST
HAVE AT LEAST ONE GP AND AT LEAST ONE LIMITED
PARTNER.

8. LIMITED LIABILITY
PARTNERSHIPS(L.L.P.)
• LIMITED LIABILITY PARTNERSHIP (LLP) IS A NEW
CORPORATE STRUCTURE THAT COMBINES THE
FLEXIBILITY OF A PARTNERSHIP AND THE
ADVANTAGES OF LIMITED LIABILITY OF A COMPANY
AT A LOW COMPLIANCE COST.

9. PARTNERSHIP WITH A FIXED
TERM
• PARTNERSHIP WITH A FIXED TERM
A PARTNERSHIP WHEREIN THE TERM FOR WHICH
THE PARTNERSHIP IS TO EXIST IS FIXED OR AGREED UPON OR
ONE FORMED FOR A PARTICULAR UNDERTAKING, AND UPON
THE EXPIRATION OF THE TERM OR COMPLETION OR THE
PARTICULAR ENTERPRISE, THE PARTNERSHIP IS DISSOLVED,
UNLESS CONTINUED BY THE PARTNERS.

10. JOINT VENTURE
• A JOINT VENTURE (JV) IS A BUSINESS
ARRANGEMENT IN WHICH TWO OR MORE
PARTIES AGREE TO POOL THEIR RESOURCES
FOR THE PURPOSE OF ACCOMPLISHING A
SPECIFIC TASK.
• THIS TASK CAN BE A NEW PROJECT OR ANY
OTHER BUSINESS ACTIVITY.
• IN A JOINT VENTURE (JV), EACH OF THE
PARTICIPANTS IS RESPONSIBLE FOR PROFITS,
LOSSES AND COSTS ASSOCIATED WITH IT.

11. TYPES OF PARTNERS
TYPES:-
GENERAL PARTNER
SPECIAL PARTNER
DORMANT PARTNER
LIMITED PARTNER
OSTENSIBLE PARTNER
WINDING UP PARTNER
MANAGING PARTNER
SECRET PARTNER
QUASI PARTNER
INDUSTRIAL PARTNER
CAPITALIST PARTNER
NOMINAL PARTNER

12. • EASY FORMATION
• MORE CAPITAL AVAILABLE
• COMBINED TALENT, JUDGEMENT AND SKILL
• DIFFUSION OF RISK
• FLEXIBILITY
• TAX ADVANTAGE
ADVANTAGES OF PARTNERSHIP

13. • UNLIMITED LIABILITY
• DIVIDED AUTHORITY
• LACK OF CONTINUITY
• RISK OF IMPLIED AUTHORITY
DISADVANTAGES OF PARTNERSHIP

14. THANK YOU