Partnershi p Project Report on:- Submitted by :- Guided by:- 1
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Partnership
Project Report on:-
Submitted by :- Guided by:-
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INDEX1. Introduction2. Definitions3. Features4. Merits5. Demerits
6. Types of partnership firms
7. Types of Partners
8. Formation
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Introduction
Partnership is a form of business organization. This form of business starts to overcome the problems of sole-proprietorship.
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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.
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Definitions : Partners & firm
Persons who have agreed into partnership with one another are called individually ‘PARTNERS’ and collectively ‘FIRM’.
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Features : 1.Membership
There must be minimum 2 and maximum 20 members to form the partnership firm.
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Features : 2.Agreement
There must be an agreement between the partners to form a partnership either oral or written also known as Partnership Deed .
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Sample of Partnership Deed:-
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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.
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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.
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Features : 5.Profit sharing
The partners of the firm share the profits of the firm in the ratio specified in the agreement.
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Illustration :-
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Merits of Partnership
Risk sharing
Easy to
Form
Division of work
Motivation
Larger
Financial
Recourses
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Demerits of Partnership
Conflicts
Unlimited
Liability
Uncertainty
Risk of mutual agency
Non-transferability of share
s
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Types of PartnershipPartnership
At will Fixed period
particular
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Types of PartnersPartners
Active
Dormant
Secret
NominalBy
estoppe
lBy
holding out
Minor
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Active Partners
The active partner participates in the management of the firm.I do all
the hard-work !
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Dormant Partners
The partners who does not participates in the management of the firm.
zzZZzzzzzZZZzz …
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Secret Partners
The connection and relation of the secret partner is not known to outsiders.
Ssshh it’s a secret..
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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.
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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.
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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.
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Registration : ProcedureSample of an application form.
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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.
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Thank you for your attention.Any Queries ?
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