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Sunday, 29 May 2011

Discuss the Various forms and types of Partnership

Following are the important forms of partnership

1. Partnership for Fixed Period :-
When the business partnership is formed for the definite period of time it is called partnership of time it is also called partnership to the fixed period. At the expiry of this period partnership comes to an end.

2. Partnership At Will :-
Duration period of partnership is not fixed before starting the business. It can be dissolved by partner by serving the notice to other partners. It may be created under the following circumstances :
1. When the partnership is formed for indefinite period.
2. When the partnership is formed for a definite period but remains continue after the expiry of this period.
3. If a partnership is formed to complete a particular venture but it remains continue after its completion. It is called partnership at will.

3. Particular Partnership :-
When a partnership is formed for the object of conducting a particular business. It is called particular partnership. The particular undertaking he can not be extended to any other business.

4. Limit Partnership :-
In this organization the liability of some persons is limited to their invested capital and other persons are liable for all the obligations of the firm.
Following are its main characteristics :

1. Number of Members :- There should be not more than twenty and not less than two in the ordinary business. In a banking business not more than ten.

2. Registration :- The registration of the firm compulsory by law.

3. Limited Partner :- There must be at least one limited partner.

4. General Partner :- There must be one or more partners who are liable for all the debts of the firm.

5. Limited Participation :- Limited partner cannot participate in the business management of the firm.

6. Transfer of Share :- A limited partner can transfer his share to others with the consent of other partners.

7. Entry of New Partner :- A new member can be admitted to the partnership firm without consulting by the limited partner.

8. Suggestions :- A limited partner can give his suggestions to improve the business.

9. Inspection of Books :- A limited partner may inspect the records of business and accounts at any time.

10. Word Limited :- The word Limited is written with the name of firm for public information.

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