types of partnership

MAY 6, 2020

DAY 3

THANK YOU FOR LOGGING IN. 

GOOD MORNING BOYS! As we have completed the types of partners, we will now see the types of partnership. 

JUST A REMINDER- 11B STUDENTS HAVE THEIR GOOGLE MEET AT 1 PM TODAY. COPY THE FOLLOWING LINK:

  Meeting ID

     meet.google.com/kqz-jxeg-rri

LEARNING OUTCOMES: At the end of the lesson, students will be able to:
1) Explain the types of partnerships.
2) Differentiate between general and limited partnership.


WATCH A SMALL VIDEO FIRST TO UNDERSTAND THE TOPIC BETTER:

       

                                                                                 

Q.13 Explain the types of partnerships in brief .(4)

Ans- The types of partnerships can be classified on the basis of duration and liability .

On the basis of duration-

1. Partnership at will- 

a) It continues at the will of all the partners. Business continues till all the partners mutually agreed to do so.

b) Business is discontinued when one or more partners wish to withdraw themselves as partners from the business.

2. Particular Partnership -

a) It is formed to complete a specific task or a project . Continuity of partnership business depends upon the completion of the project or the task it completion of the task or the project .

b)For example - Two different lawyers may enter into partnership to fight for a case jointly .The partnership will continue till the case is unsolved. It can also be for a specific time period and the business gets dissolved at the expiry of  the time duration .For example- partnership for a period of 5 years.

On the basis of Liability:

1. General Partnership- 

a) In this case, the liability of the partners is joint and unlimited .Each partner actively participates in the management of the firm.

b) Act of every partner binds himself ,the firm and every other partner. Registration of such partnership is optional and the continuity of the business is affected by the death,  insolvency or retirement of the partners.

2. Limited Partnership-

a) In such case, the liability of at least one partner is unlimited. All other partners may have limited liability. Continuity is not affected by the death, insolvency or retirement of the limited partners.

b)Limited partners do not have a right to manage the business affairs and registration of such partnership is compulsory.

GOD BLESS YOU ALL!