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Partnership: Project Report On

This document provides an overview of partnerships as a business organization structure. It defines a partnership as an agreement between two or more people to share profits from a business carried out by the partners. The key features discussed include membership of 2-20 people, a required agreement between partners, the ability to undertake any lawful business activity, mutual agency where partners' acts bind each other, and profit sharing as specified in the agreement. Partnership types include active, dormant, secret, nominal, minor and by estoppel. The document also reviews the registration process for a partnership and provides sample forms.

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129 views25 pages

Partnership: Project Report On

This document provides an overview of partnerships as a business organization structure. It defines a partnership as an agreement between two or more people to share profits from a business carried out by the partners. The key features discussed include membership of 2-20 people, a required agreement between partners, the ability to undertake any lawful business activity, mutual agency where partners' acts bind each other, and profit sharing as specified in the agreement. Partnership types include active, dormant, secret, nominal, minor and by estoppel. The document also reviews the registration process for a partnership and provides sample forms.

Uploaded by

parv dalal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Project Report on:-

Partnership

Submitted by :- Guided by:-

1
INDEX
1. Introduction
2. Definitions
3. Features
4. Merits
5. Demerits

6. Types of partnership firms


2
Introduction

Partnership is a form of business


organization. This form of business
starts to overcome the problems of
sole-proprietorship.

3
Definitions : Partnership

Partnership is the relation


between two or more persons who
have agreed to share the profits of
the business carried on by all or any
of them acting for all.

4
Definitions : Partners & firm

Persons who have agreed into


partnership with one another are
called individually ‘PARTNERS’ and
collectively ‘FIRM’.

5
Features : 1.Membership

There must be minimum 2 and


maximum 20 members to form the
partnership firm.

6
Features : 2.Agreement

There must be an agreement


between the partners to form a
partnership either oral or written
also known as Partnership Deed .

7
Sample of Partnership Deed:-

8
Feature : 3.Business

A partnership may undertake any


lawful business activity.
The partnership can be formed
only for the purpose of carrying on
business which is legal.
9
Feature : 4.Mutual agency

The acts of one partner are


binding on other partners.
Thus, partnership business can be
carried on by all or by any of them
acting for all.
10
Features : 5.Profit sharing

The partners of the firm share the


profits of the firm in the ratio
specified in the agreement.

11
Illustration :-

12
Merits of Partnership
Easy to
Form

Larger Risk Division


Financial
Recourses sharing of work

Motivation

13
Demerits of Partnership

Unlimited
Liability
Non-
transferab Uncertainty
Conflicts
ility of
shares
Risk of
mutual
agency

14
Types of Partnership

Partnership

Fixed
At will period
particular

15
Types of Partners
Partners

Active Dormant Secret Nominal


Minor

By By holding
estoppel out

19
Active Partners

The active partner participates in


the management of the firm.
I do all the
hard-work !

20
Dormant Partners

The partners who does not


participates in the management of
the firm.
zzZZzzzzzZ
ZZzz …

21
Secret Partners

The connection and relation of the


secret partner is not known to
outsiders.
Ssshh it’s a
secret..

22
Minor Partner

The partnership Act 1932 does not


permit a minor to become a partner
in the partnership firm. The minor
can only be admitted to the
benefits of the firm.

23
Nominal Partners

Nominal partners are not the real


partners of the firm. They only lend
their name and reputation for the
benefit of the firm.

24
Registration : Procedure

A partnership firm can be registered any


time.
Partners have to apply to the registrar in a
prescribed form along with registration fees
& the information if authenticated, a
certificate of registration will be issued. It is
an evidence of existence of the firm.
29
Registration : Procedure
Sample of an application form.

30
My Views on Partnership

I think entering into a Partnership business


is much better option than running a sole
proprietorship business.
Partnership Firm’s Final accounts are similar
to Sole proprietorship firm’s final accounts
except the profit sharing & Capital A/c.

32
Thank you for your attention.
Any Queries ?

33

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