explain the features of partnership firm.
Answers
Partnership is a form of business which came into existence due to the shortcomings of sole proprietorship.
When the business grows and prospers, one person is not enough to procure capital and look after its day-to-day affairs. In such a scenario, more persons join hands and contribute their funds as well as other skills to run the business. Thus, partnership is said to be an extension of sole proprietorship.
Partnership is an association of two or more persons who have mutually decided to carry out business activities jointly and share its profits as well as losses. The partnership agreement may be written or oral.
Answer:
Features of Partnership Firm – Number of Members, Existence of Business, Contractual Relationship, Legal Business, Agency Relationship, Unlimited Liability and a Few Others. Number of Members / Two or More Persons:
A banking firm can have maximum ten partners where as other firms can have maximum twenty partners.