Partnership
Partnership and its types Partnership: A partnership is a form of business which enables two or more persons to co-own an organization, and they agree to share the profits and losses of the company. Each member of such a business is called a Partner, and collectively they are known as a partnership firm. In a partnership, every owner contributes something to the welfare of the firm. These can be in the form of ideas, property, money and sometimes a combination of all these. Owners of a Partnership share profits and losses in proportion to their respective investments. Partnership businesses in India are regulated by Section 4 of the Indian Parliament Act of 1932. Characteristic of a Partnership Firm A few distinct characteristics of partnerships are mentioned below: Agreement- Partners, who decide to start this business, have to make a formal mutual contract between them. This agreement is usually written following the norms of government act. Numbe...