Partnership is a business structure where two or more individuals combine resources and share profits and losses as per a partnership agreement, governed by the Indian Partnership Act of 1932. It offers advantages such as easier capital acquisition, specialization in management, and flexibility, but also has drawbacks like difficulty in transferring interests, unlimited liability, and potential instability due to the personal risks involved. The document acknowledges contributions from individuals and provides contact information for associated campuses.

1. PARTNERSHIP
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2. INTRODUCTION
TO PARTNERSHIP
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3. Partnership is a type of business organization in
which two or more individuals pool money, skills,
and
other resources, and share profit and loss in
accordance with terms of the partnership
agreement.
The Indian Partnership Act enforced in1932
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4. CHARACTERISTICS
OF PARTNESHIP
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5. Partnership Deed And Contractual
Relationship
Number of Partners
Business
Profit motive
Entity
Unlimited liability
Investment
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6. MERITS
OF PARTNERSHIP
Easy to Start: There is no complicated procedure to start
partnership.
It does not take much expenditure to start.
It can be started very easily.
Sufficient capital: partnership has more capital resources
as compared to sole trader.
It can even get larger amount of loans from other institutes
on easy terms.
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7. Specialization in management: work is divided in
partnership in accordance with specific management
principles. Work is given to partners as per their capabilities
and with time they attain specialization in their work.
Balanced Decision: decisions are taken jointly by
consulting each other, therefore the partnership is able to
take balanced decisions.
Advantages of unlimited liabilities: Since liability of the
partner is unlimited, therefore, they take allmost care in
discharging their duties.
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8. Combined resources: In partnership, partner’s capital,
energy, knowledge, experience, etc., act jointly and
effectively.
Flexibility: Partnership firms have flexibility. The expansion
of business, objects, capital and number of partners can be
changed according to situation without any legal barrier and
present business can be changed by some other business
very easily.
Registration not compulsory: Registration of partnership
is not compulsory. The partners may or may not get the
partnership registered. 8

9. DEMERITS
OF PARTNERSHIP
Difficulty in transfer of interest: No partner can transfer his
interest in partnership without the consent of all the partners.
Due to this limitations, lots of people hesitate to invest money
in partnership.
Delay in decision making: Decision making in partnership
requires consent of all the partners so decision making takes
more time compared to a sole trader.
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10. Unlimited liabilities: Liabilities of partnership is unlimited.
Even the personal assets of partners can be used to meet
firm’s debts.
Instability: Partnership has an uncertain future.
Death of a partner, insanity, insolvency, etc., ends the
partnership.
Responsibility after winding up: Normally, the liabilities of
a business ends with the closure of business.
But according to partnership Act, responsibility of a partner
does not end until they are given public notice of winding
up of partnership. 10

11. Conflicts and frictions: Partnership lacks centralised
management.
Conflicts and frictions can arise as every partner has a right
to manage the partnership.
All this becomes harmful for the future of partnership.
Risk of implied authority: Every partner is a representative
of the firm.
He binds the firm by the acts done by him.
Any dishonest or inefficient partner may cause losses for
other partners through his misdeeds.
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ACKNOLEDGEMENT
We specially thank to Prof. Jayanta Sengupta, for giving us
an opportunity to make this project.
Thanks to Google
AND
Thank to every member in our group to make this project
successful.

13. THANK YOU
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http://www.unitedworld.edu.in/
Campus
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Kolkata Campus: Infinity Benchmark Tower 10th Floor,
Plot - G1, Block - EP& GP, Sec - V, Salt Lake, Kolkata.
Reg. Office: 407, Zodiac Square, 4th Floor Opp.
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