The document defines partnership as the relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all, according to Section 4 of the Indian Partnership Act, 1932. A partnership is an agreement between competent persons to carry on a lawful business together with a view to make private gain by sharing profits. Key characteristics of a partnership include agreement, lawful business, mutual agency, joint ownership and management, sharing of profits, and dissolution. Partnerships provide benefits like increased capital and resources but also have disadvantages like unlimited liability and risk of disputes. Partnerships are classified based on duration, liability, and registration status.

2.  It is the relation between persons who have agreed to
share profit of business carried on by all or any of them
acting for all. – Sec 4 of Indian Partnership Act, 1932.
 Partnership is the relation between persons competent
to make contracts who agreed to carry on a lawful
business in common with a view to private gain. – Prof.
Haney.
 Partnership is the relation which subsists between
persons, who have agreed to combine their property,
labor or skill in some business and to share the profits
thereof between them. – Indian Contract Act, 1872.

3.  Agreement
 Registration
 Lawful Business
 Membership
 Mutual Agency
 Liability
 Sharing of Business
Profit
 Joint Ownership and
Management
 Dissolution
 Restriction on Transfer
of Interest
 No Legal Status
 Secrecy

4.  Increased Capital
 More Manpower Resources
 Easy Formation and Dissolution
 Secrecy
 Personal Contacts
 Mutual Approach
 Sharing of Risk
 Flexible Management
 Effort-Reward Relationship

5.  Unlimited Liability
 No Legal Status
 Disputes among Partners
 Risk of Implied Authority
 Problem of Continuity
 Difficulty of Transfer of shares
 Lacks of Public Trust
 Limited Membership
 Limited Capital
 Difficulty in Admitting New Partners

6.  Active Partner
 Sleeping Partner
 Nominal Partner
 Partner in Profit only
 Limited Liability Partner
 Quasi (Retirement) Partner
 Secret Partner
 Sub-Partner
 Minor Partner
 Partner by Holding out
 Partner by Estoppel

7.  Classification on the Basis of Duration
 Partnership at will
 Particular Partnership
 Classification on the Basis of Liability
 General Partnership
 Limited Liability Partnership
 Classification on the Basis of Registration
 Registered Partnership
 Unregistered Partnership

8.  Procedure
 Partnership Deed
 Filling of Prescribed Forms
 Submission of Forms
 Verification of Forms
 Entry in Register of Firms
 Issue of Certificate of Registration

9.  Suits between Partner and Firm
 Suits between Firm and Third Parties
 Claim of Set-off