Different types of Duties of Partners

Different types of Duties of Partners

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 Duties of Partners

Here, we mention some duties of partners like –

ü  Duty to work hard for business and for the profit of all partners

ü Every partners must act faithfully for the partners and other partners

ü Every partners has a duty to maintain true and correct account of business

ü  Every partners must do everything to save the firm from losses

ü  Every partner use business property for business use

ü  It become duty to bear the loss according the ratio

ü  No partners have the authority to so the same business

ü  Every business have a predefine area to work so must follow the rules and responsibility

ü  It become the duty of every partners that he will not share the business interest with other

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

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.

                                                                                                                                          

Different contain for “Partnership Deed”

Different contain for “Partnership Deed”

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.

 “Partnership Deed”

Here, we mention some important points for list –

ü  Firm name

ü  Partners – name & address

ü  Business types or nature

ü  Time frame for partnership

ü  Capital invested by partners

ü  Withdrawn by partners

ü  Profit – Loss sharing ratio

ü  Partners salary or commission

ü  Joining or retirement of manpower

ü  Dissolution & settlement of partners

ü  Payment of loan & settlement

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.  

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

What you know about Sole Proprietorship

What you know about Sole Proprietorship

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. 

Sole Proprietorship

In these types of business a single person is responsible for all the matters related with business.

Some feature/characteristics for these types of business –

ü  Own capital – these types of business start only with own capital. That person manages all the capital from his own resources for investment purpose.

ü  These types of business have a small size and a single person is responsibility for all the activity.

ü  Manage & control – the sole proprietorship manage all the activity of business. A owner make all the decision & have a full control over all the full activity.

ü  These types of business have an unlimited liability. Risk factor is really high in these types of business.

What you know about Business Enterprises or Organization

What you know about Business Enterprises or Organization

Business enterprises or organization is defines as a unit of people or social group constructed for some special economic goals. The main activity of an organization is goal oriented and they have a clear road map & coordination in respect of duties and responsibilities. These human beings fully coordinated in respect to their assign activity.

Every organization have some common feature like – have a size, complex structure, formality and top to bottom hierarchy. In other words, we can say that every organization formed for some cooperative action to accomplish the collective economic goals with a clear pre-define rules or setup. For example – business organization, education group, Government bodies and hospitals.

Business Enterprises or Organization

Here, we mention some common feature/characteristics like –

ü  Permanent establishment/body – Every organization have a permanent body rules & continue without any disturbance from retirement or step-down by any employee from top to bottom.

ü  Economic goals – every organization setup for some special economic goals within define activity. Other words every organization have all goal oriented activity.

ü  Every organization have a team of specialization person to accomplish the economic goals

ü  Mutual coordination – organization goals directly or un-directly attached with every single activity. Pre-define rules and procedure is must for every organization.

ü  Structure/working body- every organization have a pre-define working structure with role and responsibility and having a fix hierarchical from top to bottom 

Different role of business activity

Different role of business activity

There are lots of activities when we form a business. Every business has a fixed and important place in society to give and take from raw materials to finish goods. In this pipeline from raw materials to finish goods, we interact with lot of interested group like some are related with internal environment and some from external environment. The main aim is to satisfied human being need with economic gain.

Different types of business activity

We divide business activity in two parts depend on their nature –

                                                           

Industry: - we mostly include manufacturing units in it. Some goods are ready to use like customers goods but some are like capital goods which help in producing others things –machinery or building etc. we divide it into four parts, first extractive – getting out raw materials for earth, sea or air. Second, Genetic – it engaged with plant & animals like nurseries and big cattle or others farms. Third – manufacturing and last is – construction.

Commerce: - production of any things for satisfactions of people or human need is the main aim of business. But we have a pipe line from industry or manufacturing to consumer. In this pipeline, we have wholesale, retails, import –export, banking, transport, Warehousing and insurance. We include all these activity into commerce which makes easy the business.

Different types of banks

Different types of banks

Banking is a comprehensive wide term in which different types of financial activity take places. In other words – a system or place where we put our money or valuable things for safety purpose and take back or withdrawal according to our need or requirement. Bank system deal in money, it takes money from depositor on a low rate and gives it to industries on other/higher rates according to their needs. In past time lot of people involve in these types of activity like – shroffs, seths, mahajans, baniya or sahukar etc.

Different types of banks

Here, we mention some different types of banks

Commercial bank – a bank which accept deposit and allow people for withdrawal in any way like cash or cheque,  come under a commercial bank. It also provide help for trade, industry, commerce, discount bill, payment, tax and money transfer etc.

Saving bank – these banks always motivate for saving for their future needs, by introducing a variety of attractive schemes. These banks are hardly working in current days.

Land development bank – these bank set up for especially for farmer. They provide fund for a long run with a low charge and recover in installments over a long run.

Co-operative bank – these banks formed on mutual benefits for a society. These banks provide short term support to farmer & small scale industry. These are formed on village level, district or state level.

Industrial bank – these banks provide medium and long term financial help to industry. Some of like – Industrial Finance Corporation of India (IFCI), Industrial Credit and Investments Corporation of India (ICICI), National Small Industries Corporations ltd.

Exchange bank – these banks have a concern with buying & selling of foreign exchange and provide support for export-import. In it, we include foreign exchange, bill payment or exchange, credit facility and allow hedging.

Banking – A History and Function

Banking – A History and Function

Banking is a comprehensive wide term in which different types of financial activity take places. In other words – a system or place where we put our money or valuable things for safety purpose and take back or withdrawal according to our need or requirement. Bank system deal in money, it takes money from depositor on a low rate and gives it to industries on other/higher rates according to their needs. In past time lot of people involve in these types of activity like – shroffs, seths, mahajans, baniya or sahukar etc.

Our first bank, Bank of Hindustan is entirely managed by out sides of India. After that bank of Bengal (1806), Bank of Bombay (1840) or Bank of Madras (1846). After freedom, the State bank of India was formed in 1955 for main financial activity in India. It is responsible for new branches in different area of India and other mutual benefit.

Banking – A History and Function  

Different functions & activity of a commercial bank –

ü  Facility for depositors: - bank means motivation for saving, it also pay interest on summit amount and also provide lockers for valuables things. It also involve different settlements like cheques, DD, bill payments or tax etc.

ü  Loan: - commercial bank provides financial support to small scale or big industries and farmer for a fix time with low level of interest rates. Mainly bank lend their money like overdraft, cash, creditor, loans & bill discounts. These facilities also divided into secured and unsecured loan.

ü  Other services: - bank also buys & sells share, bond or debentures for their customers. It also pay their regular payment like tax or premium etc.

      

                                                                                                          

                                                                                                      

Different interested group in business

Different interested group in business

In present time, it is not possible that a business only concentrate the profit making while totally ignore the social – economical relationship. There are lot of interested group in society which is directly connected by business like shareholder, employees, consumers, suppliers, and government. Here, we mention some important interested group in business: -

Share holder: - we also call them the “owner”. They require a adequate return on investment. They have complete information & a clear picture about profit and always looking for a hike in share value.

Employees: - employee requires a fair wages which take cares their living cost & growth. These require a job satisfaction environment. They are must be motivated by financial or non-financial, better working condition, medical care, retirement benefits.

Different interested group in business

Consumers: - every business depends on customer behaviour. If a business has lot of customers it shows its growth story & satiability. Every output like goods and services require customers and customers require all things with a standard and quality in a minimum price. A business also gives attention to any fault & repair, replacement, poor complaint handling and failure to delivery of goods on time.

Suppliers & creditors: - every business requires raw materials, labors, machines for a timely delivery of their goods and services. A business must pay a fair price to its suppliers for good quality materials & on timely delivery. It’s also requiring a timely payment to creditors also.

Government: - it is our duty to follow the rules passed by local, states or central government. It must a co-operation with policy maker to form a good policy with a good working environment.

Community: - the responsibility of a business for community is very important factor. Mostly, we divide it into two parts, first – as regards social, political & environment and second is improving the living condition or standard of peoples or human being.

                                                                                            

Social objectives of a business

Social objectives of a business

Every business starts with some objectives. These objectives always define the path or way of business. It also includes future steps and decision according to the demand of the future. Mostly, we found two types of business objectives – economic and social objectives. In economic objectives, we mention economic gain or profit making, production of goods and services, making market share etc. In current environment, every business has some social responsibility/objectives also like employee relationship, customer satisfaction & mix activity for society etc.

Social objectives of a business

                                                                

Every business has two type of environment from a business point of view. In Internal-environment, we include like man power, machine or capital goods, financial & technological resources. Naturally, if these are not in a manner, no business gets its goal or economical gain. In external environment, we include like economical factor, political factor, social & technical factor. These factors also play an important role while making business objective or economic-gain policy. So businesses always try to adopt a policy in which have profits with social objective.

Some social objective are: -

ü  Every business tries to make a maximum economical gain or making profit but at the same time, he must follow the rule & low passed by the Government.

ü  Moral standard must be maintained or increased in the society by business activity, it also include internal and environment.

ü  Safety features and working condition must have a standard.

ü  Accept responsibility for solving problems faced by individual and society also

ü  Share public interested information with society and take idea to improve it.