Q.8 Discusses the Various forms of Partnership?
Ans: FORMS OF PARTNERSHIP
Following are the forms of partnership:
PARTNERSHIP FOR FIXED PERIOD
When the business partnership is formed for the definite period of time it is called partnership of time. It is also called partnership of the fixed period. At the expiry of this period partnership comes to an end.
PARTNERSHIP AT WILL
Duration period of partnership is not fixed before starting the business- Any partner serving the notice to other partners can dissolve it. It may be created under the following circumstances.
i.When the partnership is formed for indefinite period.
ii.When the partnership is formed for a definite period but it remains continue after the expiry of this period.
iii.If a partnership is formed to complete a particular venture but it remains continue after its completion. It is called partnership at will.
When a partnership is formed for the object of conducting a particular business. It is called particular partnership. The particular undertaking cannot be extended to any other business.
This type of partnership is not available in Pakistan. In this organization the liability of some persons is limited to their invested capital and other persons are liable for all the obligations of the firm.
FOLLOWING ARE ITS MAIN CHARACTERISTICS
1. NUMBER OF MEMBERS
There should not be more than twenty and not less than two in the ordinary business, in a banking business not more than ten,
The registration of the firm is compulsory by law.
3. LIMITED PARTNER
There must be at least one limited partner,
4. GENERAL PARTNER
There must be one or more partners who are liable for all the debts of the firm.
5. LIMITED PARTICIPATION
Limited partner cannot participate in the business management of the firm.
6. TRANSFER OP SHARE
A limited partner can transfer his share to other with the consent of other partners.
7. ENTRY OF NEW PARTNER
A new member can be admitted to the partnership firm without consulting the limited partner.
A limited partner can give his suggestions to improve the business*
9. INSPECTION OF BOOKS
A limited partner can give his suggestions to improve the business.