Question

What is partnership its features and differences between partnership and firm?

Answer 1

Explanation:

For a partnership firm to cease to exist, it needs to be dissolved.

The process, known as dissolution of a partnership firm, involves the sale or disposal of all assets of the firm, final settlement of all of its liabilities, and the settling of the accounts.

Answer 2

PARTNERSHIP

Partnership is a popular form of business for small scale and medium scale business. As the size of the business grows, one person is not enough to carry on managerial activities. Therefore, two or more persons form partnership to carry on business. This form of business starts to overcome the problem of sole proprietorship.

Partnership is the relation between two or more persons who have agreed to share the profits of the business carried on by all or any of them acting for all. - The Indian Partnership Act, 1932.

FEATURES OF PARTNERSHIP

• Liability :- The liability of all the members of a partnership firm is unlimited. The partners are individually and collectively liable to payback the debts of the firm. At the time of loss if the firms assets are not sufficient to payback the debts then the creditors can have claim over the personal property of the partners also.
• Registration :- According to Partnership Act, 1932, it is not compulsory for a partnership firm to get itself registered. However, partners prefer to get the partnership firm registered because there are certain advantages of registration.
• Profit Sharing :- The partners of the partnership firm share the profits of the firm in the ratio specified in the agreement. In case no ratio is specified in the agreement then the profit is divided equally among all the members.