PPT - Basics of Partnership | Business Laws for CA Foundation PDF Download

 Page 1


Partnership is a form of business in which
Partnership is a form of business in which
 
 
two 
two 
or more but not more than twenty people
or more but not more than twenty people
 
 
owns a 
owns a 
business. It is based on written contract or on an oral 
business. It is based on written contract or on an oral 
agreement.
agreement.
Partnership is the relation between persons who 
have agreed to share the profit of a business carried 
on by all or any of them acting for all, persons who 
have entered into partnership with one another are 
called individually  ‘Partner’ and collectively a 
‘firm’.   – Partnership Act-1932. 
Partnership
Page 2


Partnership is a form of business in which
Partnership is a form of business in which
 
 
two 
two 
or more but not more than twenty people
or more but not more than twenty people
 
 
owns a 
owns a 
business. It is based on written contract or on an oral 
business. It is based on written contract or on an oral 
agreement.
agreement.
Partnership is the relation between persons who 
have agreed to share the profit of a business carried 
on by all or any of them acting for all, persons who 
have entered into partnership with one another are 
called individually  ‘Partner’ and collectively a 
‘firm’.   – Partnership Act-1932. 
Partnership
S. E. Thomas : “A partnership is an association of 
people who carry on business together for the 
purpose of making profit”.
Professor Kant : “Partnership is a contract of two or 
more competent persons to place their money, 
efforts, labor and skill, or some or all of them in 
lawful commerce or business and to divide the profit 
and bear the loss in certain proportions”.
Page 3


Partnership is a form of business in which
Partnership is a form of business in which
 
 
two 
two 
or more but not more than twenty people
or more but not more than twenty people
 
 
owns a 
owns a 
business. It is based on written contract or on an oral 
business. It is based on written contract or on an oral 
agreement.
agreement.
Partnership is the relation between persons who 
have agreed to share the profit of a business carried 
on by all or any of them acting for all, persons who 
have entered into partnership with one another are 
called individually  ‘Partner’ and collectively a 
‘firm’.   – Partnership Act-1932. 
Partnership
S. E. Thomas : “A partnership is an association of 
people who carry on business together for the 
purpose of making profit”.
Professor Kant : “Partnership is a contract of two or 
more competent persons to place their money, 
efforts, labor and skill, or some or all of them in 
lawful commerce or business and to divide the profit 
and bear the loss in certain proportions”.
Plurality of members: More than one person involve with 
the formation of partnership business.
Contractual relation : The relationship of partners 
depends on contract among them.
Legal business :The business must be legal in the eye of 
law. Two or more than two persons involve with the  
illegal business is not a partnership.
 
Lawful business : The partnership business which must 
be
     legal in the eye of law.   
 
Page 4


Partnership is a form of business in which
Partnership is a form of business in which
 
 
two 
two 
or more but not more than twenty people
or more but not more than twenty people
 
 
owns a 
owns a 
business. It is based on written contract or on an oral 
business. It is based on written contract or on an oral 
agreement.
agreement.
Partnership is the relation between persons who 
have agreed to share the profit of a business carried 
on by all or any of them acting for all, persons who 
have entered into partnership with one another are 
called individually  ‘Partner’ and collectively a 
‘firm’.   – Partnership Act-1932. 
Partnership
S. E. Thomas : “A partnership is an association of 
people who carry on business together for the 
purpose of making profit”.
Professor Kant : “Partnership is a contract of two or 
more competent persons to place their money, 
efforts, labor and skill, or some or all of them in 
lawful commerce or business and to divide the profit 
and bear the loss in certain proportions”.
Plurality of members: More than one person involve with 
the formation of partnership business.
Contractual relation : The relationship of partners 
depends on contract among them.
Legal business :The business must be legal in the eye of 
law. Two or more than two persons involve with the  
illegal business is not a partnership.
 
Lawful business : The partnership business which must 
be
     legal in the eye of law.   
 
Earning and sharing profit: The profit which is earned 
from the partnership business must be shared among 
the partners according to the predetermine ratio.
Mutual organization: This is the mutual organization 
where each and every member freely involves with 
the business. 
Mutual confidence and trust: Partnership business 
formed depends on mutual trust and confidence.
Page 5


Partnership is a form of business in which
Partnership is a form of business in which
 
 
two 
two 
or more but not more than twenty people
or more but not more than twenty people
 
 
owns a 
owns a 
business. It is based on written contract or on an oral 
business. It is based on written contract or on an oral 
agreement.
agreement.
Partnership is the relation between persons who 
have agreed to share the profit of a business carried 
on by all or any of them acting for all, persons who 
have entered into partnership with one another are 
called individually  ‘Partner’ and collectively a 
‘firm’.   – Partnership Act-1932. 
Partnership
S. E. Thomas : “A partnership is an association of 
people who carry on business together for the 
purpose of making profit”.
Professor Kant : “Partnership is a contract of two or 
more competent persons to place their money, 
efforts, labor and skill, or some or all of them in 
lawful commerce or business and to divide the profit 
and bear the loss in certain proportions”.
Plurality of members: More than one person involve with 
the formation of partnership business.
Contractual relation : The relationship of partners 
depends on contract among them.
Legal business :The business must be legal in the eye of 
law. Two or more than two persons involve with the  
illegal business is not a partnership.
 
Lawful business : The partnership business which must 
be
     legal in the eye of law.   
 
Earning and sharing profit: The profit which is earned 
from the partnership business must be shared among 
the partners according to the predetermine ratio.
Mutual organization: This is the mutual organization 
where each and every member freely involves with 
the business. 
Mutual confidence and trust: Partnership business 
formed depends on mutual trust and confidence.
?
Easy formation
?
Plurality of members
?
Contractual relation
?
Supply of capital
?
Administration
?
Unlimited liabilities
?
Limitation of size
?
Sharing of profit & loss
?
Mutual trust and 
confidence
?
Mutual agency
?
Taking decision
?
Recognition and control 
of law
?
Registration
?
Absence of legal entity
?
Non-transferability of 
ownership
?
Uncertainty of stability