THE PARTNERSHIP

Partnership as a form of business ownership is a development over the sole proprietorship. Partnership can be defined as association of two or more people, formed for the purpose of running a business, with a view to profit.

A partnership is particularly very attractive if it helps to pool the talents or skills of partners for their mutual benefit.

It requires individuals who are capable , compatible honest, healthy, dedicated and equally motivated to succeed.

If banking business is Involved, then the maximum number of partners is 10. In the case of other businesses such as account ants solicitors, chartered surveyors, membership is open to about 20 partners.

TYPE OF PARTNERSHIP

1. ORDINARY PARTNERSHIP:
   In an ordinary partnership forms the liability of the partnership business.

The liability of each partners is beyond the capital contributed, hence, his private estate / property can be sold for the partnership dept in the event of bankruptcy.

1. LIMITED PARTNERSHIP :
   In limited partnership one or more partners may exist who do not participate in the running of the business.

A limited partner is the one who contributes a stated amount of capital and he is not liable for the firm's debts beyond that amount he contributed.

ABSENCE OF PARTNERSHIP AGREEMENT

• the partners shall share the profits and losses equally.
• there is no interest allowed on capital.
  There shall be no interest charged on earning.
• every partner may take part in the management of the business.
• No partner shall be entitled to salary for acting on behalf of other partners.
• No partner may introduce a new partner into the firm without the consent of all the existing partners.

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