Forms of partnership & difference b
-
Upload
muhammad-sher -
Category
Business
-
view
913 -
download
0
description
Transcript of Forms of partnership & difference b
LOGO
Presented By:M.Nauman Sher
To:Mr.Junaid
Forms of Partnership & Difference b/w Sole Proprietorship and Partnership
LOGO
Forms of Partnership
Partnership
General Partnership Limited Partnership
Particular Partnership Partnership at will
LOGO
The relationship which subsists between two or more persons carrying on a business in
common with a view to private gain.
What is Partnership?
LOGO
General Partnership
Partners liability is Unlimited.
Each partner involved in day-to-day operations.
Equal rights to take part in management of the business.
Example of dental office.
LOGO
General Partnership
General Partnership is further divided into two parts:
Partnership at will:Neither for fixed period nor for a fixed purpose.Under Section 7 of Partnership Act, known as
Partnership at will.Based on trust and faith.Partnership is dissolved by giving notice.
LOGO
General Partnership
Particular Partnership:
Partnership formed in particular adventures or certain undertakings or for specific time.
When work is completed partnership ends.
Example of Telenor and Ufone adds.
LOGO
Limited Partnership
Only invest in business.
Not concerned with management.
Concerned with dividend.
Liability is Limited.
Example of opening of a Hotel.
LOGO
Difference b/w Sole Proprietorship and
PartnershipSole Proprietorship Partnership
OwnerOne person ownership. Minimum two persons
Maximum twenty.
FormationIt can be established easily. Comparatively difficult
to establish.
LOGO
Difference b/w Sole Proprietorship and
Partnership
Division of profit &lossGets all profit and bears loss. Profit and losses are
shared as per agreement
Regulation of BusinessNo special act or ordinance Governed by Partnership
to govern the working. Act of 1932.
LOGO
Difference b/w Sole Proprietorship and
Partnership
Raising of CapitalResources and raising loan Amount of owner and rai-
is very limited. sing loan is easy.
ScaleOn small scale due to limited On large scale due to
resources. more resources & ability.
LOGO
Difference b/w Sole Proprietorship and
Partnership
ManagementBusiness is run and manag- Managed and run by all
ed by one person. or anyone acting for all.
RegistrationNo benefits. Not compulsory but
many
benefits.
LOGO
Difference b/w Sole Proprietorship and
Partnership
Question of successionOwnership passes on throu- Ownership is implemen-
gh succession. ted as per agreement.
Business SecretsBusiness secrets are closely Business secrets are kn-
guarded. own to all partners.
LOGO
Difference b/w Sole Proprietorship and
Partnership
Incentive to workDevotes entire energies to Incentive to work is not
successfully operate and found so much as in Sole
maximize profit. proprietorship.
DissolutionDissolution is as easy as it’s Dissolution takes place
formation. by an agreement or by
the order of court.
LOGO
Sole Proprietorship or Partnership both have it’s importance on
different levels. For instance, Sole Proprietorship is suitable for small scale
businesses and Partnership is suitable for medium or large size business.
Conclusion
LOGO
Question & Answers