Partnership_Business_Studies_Class11.pptx

My topic is partnership
It includes
Definition
Feature of partnership
Advantages and disadvantage of partnership
Types of partnership and partners
Formation
Conclusion

1. Partnership – Business Studies (Class 11) Prepared by Ashu

2. Definition / Meaning A partnership is an agreement between two or more persons to carry on a business jointly and share its profits and losses. It is governed by the Indian Partnership Act, 1932.

3. Features of Partnership 1. Association of two or more persons 2. Agreement-based relationship 3. Sharing of profits and losses 4. Lawful business 5. Unlimited liability 6. Mutual agency 7. Limited life of partnership

4. Advantages & Disadvantages Advantages: • Easy to form • More capital • Better decision-making • Sharing of risk • Flexibility Disadvantages: • Unlimited liability • Limited resources • Possible conflicts • Uncertain life • Lack of public confidence

5. Types of Partners 1. Active Partner 2. Sleeping Partner 3. Nominal Partner 4. Partner by Estoppel 5. Partner by Holding Out 6. Minor Partner (explained next)

6. Types of Partnership 1. Partnership at Will – exists as long as partners agree 2. Particular Partnership – formed for a specific venture or period

7. Minor Partner A minor can be admitted to the benefits of partnership with the consent of all partners but cannot become a full partner. They share profits but their liability is limited to their capital contribution.

8. Formation of Partnership 1. Agreement between partners (oral or written) 2. Partnership Deed – defines terms of partnership 3. Registration (optional but beneficial) 4. Start of business operations

9. Conclusion Partnerships are a common form of business organization that balance shared responsibility and resources with potential risks. Success depends on trust, coordination, and clear agreements among partners.