What you know about partnership

What you know about 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.

What you know about partnership

Main feature for partnership –

ü  Minimum two persons – In partnership, we require two persons at a minimum as per law and maximum is 20. It will not be a partnership if companies not follow the criteria.

ü  Agreement – every partnership have an agreement. Without agreement there is no accountability. If some persons have a relationship & doing work but they did not have a agreement, we not call it agreement.   

ü  Every partnership has some activity/business which produces some economic gain.  There is no partnership for functions and charity

ü  Every business/partnership has a mutual benefit and all those efforts carry out by all partners and all economic gain divided into a fix ratio.

ü  High risk is involved in partnership and partners will be responsible for interested and related party payments.

ü  Partnership requires a high level of blind faith on each others. Very actions should be taken for mutual benefit of the company.