Question

Explain the types of partnership firm
limited liability partnership​

Answer 1

Answer:

A Limited Liability Partnership (LLP) is a partnership in which some or all partners have limited liabilities. Limited Liability Partnership is a business organization that allows the limited partners to enjoy limited personal liability while general partners have unlimited personal liability.

Explanation:

The general or unlimited partnership firms may be of three types:

1. Partnership-at-Will:

This type of partnership is formed to carry on business without specifying any period of time and the partnership continues as long as the partners are willing to continue. It is not decided as to when and how the firm will come to an end. Partnership-at-will can be dissolved by any partner, giving a notice to that effect.

2. Partnership for Stipulated Period/Particular Partnership:

When a partnership firm is established for a specified or stipulated period it automatically comes to an end after completion of the specified or stipulated period.

3. Partnership for a Certain Venture or Purpose:

A partnership established for completing a specific tasks or venture or purpose during a specified period comes to an end automatically on the completion of the venture or purpose.

In India there is no provision for the formation of Limited partnership.

In UK, USA and some of the European countries “Limited Partnership” firms can be formed. Under limited type of partnership firm the liability of the partners is limited except that of one or more partners. There must be at least one partner with unlimited liability in case of limited firm.

Such partner is not entitled to take part in the management of the business and is not allowed to act as an agent of the firm or of the other partners, but he can transfer his interest in the firm to another person with the consent of other partners with unlimited liability. The liability of the partners is limited means to the extent of capital contributed by them and such partners are called limited partners or special partners.