10. DEFINE PARTNERSHIP DISCUSS ITS FEATURES, ADVANTAGES AND
DISADVANTAGES.
2 MARKS
1. PARTNER BY ESSTOPEL
2. PARTNER NU HOLDING OUT
3. PARTNERSHIP DEED
4. LLP (LIMITED LIABILITY PARTNERSHIP)
5. DISSOLUTION OF FIRM
Answers
Answer:
A partnership is a relation between two or more persons who join hands to form a business organization to earn a profit. The persons who join hands are individually known as 'Partner' and collectively a 'Firm'.
Advantages: It regulates the rights, duties, and liabilities of each partner.
It helps to avoid any misunderstanding between the partners because all the terms and conditions of the partnership have been laid down beforehand in the deed.
Disadvantages: Disadvantages of a partnership include that: the liability of the partners for the debts of the business is unlimited. each partner is 'jointly and severally' liable for the partnership's debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.