Partnership is a formal agreement between two or more people to co-own a business, share responsibilities for running it, and split profits and losses. There are different types like sleeping, nominal, minor, and active partners. Partnerships allow for better decision making by combining knowledge and skills, but also carry risks like unlimited liability, loss of autonomy when partners disagree, and potential for sudden dissolution of the partnership agreement.

1. Partnership
Meaning , Types, Characteristics, Advantages &
Disadvantages

2. Meaning
A partnership is a kind of business where a formal
agreement between two or more people is made who
agree to be the co-owners, distribute responsibilities for
running an organization and share the income or losses
that the business generates.

3. Types of partnerships
1. Sleeping partner
2. Nominal partner
3. Minor partner
4. Active partner

4. Characteristics

5. Advantage of partnership
● Easy to get started
● Better decision making
● Access to knowledge,skills,experience and contacts
● Privacy
● Easy access to profits

6. Disadvantage of partnership
1. Liabilities
2. Loss of Autonomy
3. Conflicting views
4. Lack of structured approach
5. Sudden dissolution