Students can go through AP Inter 1st Year Commerce Notes 5th Lesson Partnership will help students in revising the entire concepts quickly.
AP Inter 1st Year Commerce Notes 5th Lesson Partnership
→ Partnership Business Firm is one of the business units.
→ It is a Non-corporate Business Unit.
→ Partnership firm is an outcome of an agreement between two or more persons to share profits or losses among them.
→ Partnership is established by partnership agreement among partners.
→ Partnership Agreement Registered it. is known as Partnership Deed.
→ In India partnership is formed with the rules and regulations of the Indian Partnership Act, 1932.
→ The partnership is a part of a Limited Liability Partnership.
→ The partnership was established with a minimum of 2 partners, according to the Indian Partnership Act, 1932.
→ According to section II of the Indian Companies Act 1956, the maximum limit of partners in case of a partnership for banking business is 10, and in case of other than banking business of the partnership is 20.
→ In order to overcome the limitations of sole proprietorship concerns i.e. limited capital, limited managerial ability, and extending the size of the business, the viable and feasible option is a partnership form of organisation.
→ The liability of partners is unlimited and there is no separate legal entity to this organisation.
→ Partnership form of organisation can be dissolved with the mutual consent of the partners.
→ Dissolution of partnership occurs due to the partner giving notice in writing to other partners, expiry of the term of agreement or business, insolvency of the firm, or in the event of the court order.