Unit 5 - FORMATION OF PARTNERSHIP FIRM AND JOINT STOCK COMPANY | Business administration class 11
Unit 5 - FORMATION OF PARTNERSHIP FIRM AND JOINT STOCK COMPANY Partnership When business grows beyond the capacity of sole proprietorship, it becomes necessary to involve more people. Through the above example it’s clear that, when two or more individuals agree to carry out a business it is termed as “Partnership”. The people involved in running the business together are called ‘Partners’ and collectively called a ‘Firm’ Partnership is a popular form of business for small scale and medium scale enterprises. Definition of Partnership – According to Indian Partnership Act, 1932 Partnership is the relation between two or more persons who have agreed to share the profits of the business carried on by all or any of them acting for all. According to L.H. Haney Partnership may be defined as the relation between the persons who agree to carry on a business in common with a view to private gain. Characteristics of Partnership ...