Partnership
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 shares the income or losses that the business generates.
In India, all the aspects and functions of the partnership are administered under ‘The Indian Partnership Act 1932’. This specific law explains that partnership is an association between two or more individuals or parties who have accepted to share the profits generated from the business under the supervision of all the members or behalf of other members.
Advantage of Partnership
- Easy Formation
- Large Resources
- Flexibility
- Funds raising
- Combination of different skills
- Moral Support
Disadvantage of Partnership
- Liabilities
- Loss of Autonomy
- Emotional issues
- Lack of Stability