A good example would be a dental office where two licensed dentist partner together to open the office. Together they share profits and liabilities, and there is generally a written agreement documenting the relationship. division of responsibility for expenses, and division of earnings.
This type of partnership is neither for a fixed period. It continues its business for any length of period depending upon the will of the partners. Under Section 7 of the Partnership Act, where no period is specified for the duration of the partnership, it is known as partnership-at-will. The partnership-at-will continues up to the time till the partners have faith in each other. A firm can be dissolved by a partner by giving notice in writing to his fellow partners. The partnership will stand dissolved from the date of such notice.
or instance if Telenor and Ufone agrees that in Pakistan they will not target each other on adds... means its only for adds they can target each other’s sales etc in this case its specifically referring to adds only, so this is called particular partnership.
I personally have question regarding the question of succession, that if the sole proprietor dies and his son or daughter is less than 18, then what will happen?
Forms of partnership & difference b
Forms of Partnership & Difference b/w Sole Proprietorship and Partnership Presented By: M.Nauman Sher To: Mr.Junaid LOGO
Forms of Partnership Partnership General Partnership Limited PartnershipParticular Partnership Partnership at will LOGO
What is Partnership?The relationship which subsists between two or more persons carrying on a business in common with a view to private gain. LOGO
General PartnershipPartners liability is Unlimited.Each partner involved in day-to-day operations.Equal rights to take part in management of the business.Example of dental office. LOGO
General Partnership General Partnership is further divided into two parts:Partnership at will: Neither for fixed period nor for a fixed purpose. Under Section 7 of Partnership Act, known as Partnership at will. Based on trust and faith. Partnership is dissolved by giving notice. LOGO
General PartnershipParticular Partnership: Partnership formed in particular adventures or certain undertakings or for specific time. When work is completed partnership ends. Example of Telenor and Ufone adds. LOGO
Limited PartnershipOnly invest in business.Not concerned with management.Concerned with dividend.Liability is Limited.Example of opening of a Hotel. LOGO
Difference b/w Sole Proprietorship and PartnershipSole Proprietorship Partnership OwnerOne person ownership. Minimum two persons Maximum twenty. FormationIt can be established easily. Comparatively difficult to establish. LOGO
Difference b/w Sole Proprietorship and Partnership Division of profit &lossGets all profit and bears loss. Profit and losses are shared as per agreement Regulation of BusinessNo special act or ordinance Governed by Partnershipto govern the working. Act of 1932. LOGO
Difference b/w Sole Proprietorship and Partnership Raising of CapitalResources and raising loan Amount of owner and rai-is very limited. sing loan is easy. ScaleOn small scale due to limited On large scale due toresources. more resources & ability. LOGO
Difference b/w Sole Proprietorship and Partnership ManagementBusiness is run and manag- Managed and run by alled by one person. or anyone acting for all. RegistrationNo benefits. Not compulsory but many benefits. LOGO
Difference b/w Sole Proprietorship and Partnership Question of successionOwnership passes on throu- Ownership is implemen-gh succession. ted as per agreement. Business SecretsBusiness secrets are closely Business secrets are kn-guarded. own to all partners. LOGO
Difference b/w Sole Proprietorship and Partnership Incentive to workDevotes entire energies to Incentive to work is notsuccessfully operate and found so much as in Solemaximize profit. proprietorship. DissolutionDissolution is as easy as it’s Dissolution takes placeformation. by an agreement or by the order of court. LOGO
Conclusion Sole Proprietorship or Partnership both have it’s importance on different levels. For instance, SoleProprietorship is suitable for small scale businesses and Partnership is suitable for medium or large size business. LOGO