Right of a partner

Right of a partners in 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.

Right of a partner

Partnership Deed show/give lot of right to a partners like –

ü  Every partners have a right to manage the business

ü  Decision making – every partner have a right to participate in decision making or giving any suggestion or opinion

ü  Every partners have a right to go through the account or financial reports of business

ü  Every partners have a right to equal sharing of profit or a prefix ratio

ü  Every partners have a right to receive a interest in capital or investment or any loan on a fix ration

ü  Every partners have a right to use business property for the business use

ü  He a right to stop any new entry or partners

ü  Right to retire

ü  A retired person have start its own business having a smeller product of previous one

Sole proprietorship – merits and demerits

Sole proprietorship – merits and demerits

Sole proprietorship – a business in which a person responsible for managing all the business activity, responsible for providing fund and bearing all the risk. It is also called single man business or one person business. In these types of business a single person is responsible for all the matters related with business.

merits and demerits

Here, we mention some merits or demerits like –

Merits - :

ü  Easy formation

ü  Highly motivated

ü  High level of business secrets

ü  Fast decision making

ü  Close relationship with different party

ü  High level of economic attention

ü  Flexible – decision & expansion

ü  Easy to start

Demerits - :

 ü  Unlimited risk

ü  One person to manage but uncertainty of life

ü  Did not have a wide range of managerial ability

ü  Low level of influence in market

ü  Every person have a limited capital to invest