Podcast
Questions and Answers
True or false: Partnership business requires a minimum of 3 partners?
True or false: Partnership business requires a minimum of 3 partners?
False (B)
True or false: The business carried by a partnership firm must be legal?
True or false: The business carried by a partnership firm must be legal?
True (A)
True or false: Partnership business can be formed through an oral agreement?
True or false: Partnership business can be formed through an oral agreement?
True (A)
True or false: Partnership business involves sharing of profits among the partners?
True or false: Partnership business involves sharing of profits among the partners?
True or false: The liability of partners in a partnership business is limited?
True or false: The liability of partners in a partnership business is limited?
Flashcards
Partnership minimum partners?
Partnership minimum partners?
A partnership can be formed with two or more partners, not necessarily three.
Legal Partnership?
Legal Partnership?
A partnership must operate within the boundaries of the law.
Oral Partnership Agreement?
Oral Partnership Agreement?
A partnership agreement can be verbal, not just written.
Profit Sharing in Partnership?
Profit Sharing in Partnership?
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Partnership Liability?
Partnership Liability?
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Study Notes
Meaning of Partnership Business
- A partnership business involves two or more individuals who join together to conduct business operations and share profits and losses.
- Defined by the Partnership Act, 1932, partnership is the relationship among individuals who agree to share the profits of a business operated by any or all of the partners.
Features of Partnership
- Number of Partners: Requires a minimum of 2 partners; the Partnership Act, 1932 does not specify a maximum limit.
- Agreement: Establishes the partnership, which can be either oral or written.
- Lawful Business: The partnership must engage in legal business activities.
- Profit Sharing: Partners must reach an agreement on how to share profits generated by the business.
- Liability: Partners have unlimited liability, meaning they are personally responsible for all business debts and obligations.
Partnership Deed
- A partnership deed is the formal document outlining all agreed terms and conditions among the partners.
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