A sole trading business is started on a small scale. With the passage of time, the business expands and faces additional problems of capital and management of business. Under such circumstances two alternative options are open to him, which are as follows: (a) To take a partner (b) To engage an assistant or servant. Option # 1. Taking a Partner: [...]
After reading this article you will learn about:- 1. Meaning and Definition of Partnership 2. Need of Partnership 3. Characteristics or Features or Elements. Meaning and Definition of Partnership: Partnership is an association of two or more persons who agree to carry on a lawful business in common with the object of sharing in partnership. The partners provide the capital [...]
There are different kinds of partners and they may be classified in the following manner: 1. Active Partner 2. Sleeping or Dormant Partner 3. Nominal Partner 4. Partner in Profits Only 5. Minor as a Partner 6. Incoming Partner 7. Outgoing Partner 8. Partner by Estoppel or Holding Out. Kind # 1. Active Partner: A partner who is actively engaged [...]