Different types of Partnership

Different types of Partnership

Partnership is a mutual relationship between two persons for some profit making activity. Individual, we call them partners and jointly, we call them partnership. A partnership is a result of an agreement between the social unites or human being for some economic goals. Any partnership requires two or more persons which share their profit in a fix ratio. May be this agreement is in a written or oral format.

Different types of Partnership

Here, we mention some partnership like –

ü  A person who invest capital in a ration, take a part in decision making also have a ratio for profit-loss, we call it active partnership or working partnership.

ü  A person who have not involve in decision making but have a ratio in capital investment and profit – loss, we call them sleeping partner.

ü  Nominal partners – A person who use his name only for business but there is no investment in company and also no profit sharing nut responsible for any payment against business.

ü  There are lots of persons who do not want to show them self as a partners, normally known as – secret partners. They are also responsible for payment against business.

ü  A person below the age of 18 years, come under the minor partners.

ü  Some person has money to invest but they are not able to bear loss. We know them as-Partner in profit. They are also responsible for payment against business.