TOP 12 CHARACTERISTICS OF PARTNERSHIP

The main features of partnership are given below:


1. Agreement


There must be agreement between the parties concerned. This is the most important characteristics of partnership. Without agreement partnership cannot be formed. "No agreement no partnership." But only competent persons are entitled to make a contract. There are some provisions contained in the partnership agreement. These are determined clearly before the commencement of business. But it differs from business to business. This documents may be written or oral. But it must be written so that disputes may be settled according to the provisions of agreement.


2. Number of Partnership

There should be more than one person to form a partnership. Types of business partners can be any but there is restriction for the maximum number of partners. In case of ordinary business, the partners must not exceed 20 and in case of banking must not exceed 10 (before nationalization).

3. Business

Businessmen start partnership businesses because they know Top 15 benefits of Partnership. The object of the formation of partnership is to carry on any type of business. It may be manufacturing or merchandise type small or large scale business but it should not be illegal business in the country concerned.

4. Profit motive

The basic motive of the formation of partnership is to earn profit. The more sales you generate the more profit you make. This profit is distributed among the partners according to agreed proportion. If there is loss it will be sustained by all partners except the minor.

5. Conduct of Business

The business of partnership is conducted by all the partners or any or them acting for all. But each partner is allowed to participate in the management by law.

6. Entity

It has no separate entity apart from its members. It is not independent of the partners. Law has not granted it any legal entity. Registration of Partnership Business at FBR will make it legal and gain more people trust.

7. Unlimited liability

This is the prominent feature of partnership that the liability of each partner is not limited to the amount invested but his private property is also liable to pay the business obligations.

8. Investment

Each partner contributes his share in the capital according to the agreement. Some persons become partners without investing any capital to the business. But they devote their time, energy and ability to their business instead of capital and receive profit. A combination of Monetary investment and time investment can develop strong business brand.

9. Transfer-ability of share

There is restriction to transfer the share from one partner to another person without the consent of existing partners. So the investment in the partnership remains confined into few hands.

10. Position

One partner is an agent as well as principal to other partner. He can bind the other person by his act. In the position of an agent he can make valid contract with another person or parties on behalf of his concerned firm.

11. Mutual Confidence

The business of the partnership cannot be conducted successfully without the element of mutual confidence and cooperation of partners. So the members must have trust and confidence in each other. Lack of mutual confidence is drawback of partnership.

12. Free Operation

There are no strict rules and regulations to control the partnership activities in our country i.e. no restriction for the audit of accounts, submission of various reports and other copies to any government authority. So this organization may operate freely without any interference.
TOP 12 CHARACTERISTICS OF PARTNERSHIP TOP 12 CHARACTERISTICS OF PARTNERSHIP Reviewed by Anonymous on 10:10:00 PM Rating: 5

15 comments:

  1. thank you so much you have no idea how u just help me finish my project due tomorrow :-)

    ReplyDelete
    Replies
    1. Thank you ! You can subscribe to our updates on twitter/facebook/g+

      Delete
  2. goood i passed my test because of it

    ReplyDelete
  3. Thank u so much.. It is very useful for me to prepare notes for exam

    ReplyDelete
  4. Thank u so much..it is very useful for me to prepare notes for exam🙏🙏🙏

    ReplyDelete
  5. Thank you so much. It helped me in completing my projects and stuff.

    ReplyDelete
  6. NYC very helpful but not long as I need for graduation students

    ReplyDelete
  7. NYC very helpful but not long as I need for graduation students

    ReplyDelete
  8. NYC very helpful but not long as I need for graduation students

    ReplyDelete
    Replies
    1. Thank you. You can send us when you have yours. We shall publish here.

      Delete

We value your words. Don't spam here.

Powered by Blogger.