Partnership Law and Accounts

What is the minimum number of partners required to form a partnership business?

According to the Partnership Act of 1890, how are profits or losses shared where there is no agreement?

What is the maximum number of partners allowed in a partnership business?

What type of partners are professionally qualified and exempt from the maximum number of partners?

What is the name of the Act that defines a partnership?

What is the term for a partner who takes an active role in the management of the business?

What type of partner is only responsible for a portion of the business?

What type of partner is not actively involved in the management of the business but still shares in the profits?

What is the term for a partnership engaged in the business of banking?

What is the term for a partner who is only responsible for his own share of the business?

A partnership is the relationship between people carrying on a business in common with a view to profit.
The business carried on in common is called the "partnership firm".
The individuals who come together to carry on the business are called "partners".
Profits or losses are shared by partners according to agreement, or equally if no agreement exists.

The minimum number of partners is two (2).
The maximum number of partners is twenty (20), except for professional partnerships like accountants, solicitors, and stockbrokers.
If the number of partners exceeds twenty, the association becomes illegal unless it is registered as a company.
For partnerships engaged in banking, the maximum number of partners is ten.

Active partners: actively involved in the business.
Sleeping or dormant partners: not actively involved in the business but share profits and losses.
Quasi partners: not a partner but has a similar relationship to a partner.
Nominal partners: have a name or reputation in the business but are not involved.
General or full partners: have unlimited liability and are involved in the business.
Limited or special partners: have limited liability and are not involved in the business.
Name or title partners: have a name or reputation in the business but are not involved.
Liquidating partners: responsible for winding up a partnership.
Corporate partnership: a partnership formed between companies.