Question

Seema, Sushma and Suhana became good friends while pursuing a fashion designing course from a premier institute in Delhi. Seema expressed her desire to start a business in partnership with Sushma and Suhana after completing their course. Sushma and Suhana readily agreed to the proposal but at the same time expressed their desire to join Seema in business only on the condition that their liability will be limited in the business.In context of the above case:i) Identify the type of partnership that Sushma and Suhana are referring to.ii) How is this type of partnership different from the other type of partnership formed on the basis of liability?​

Answer 1

Answer:

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