PARTNERSHIP ORGANISATION

INTRODUCTION
In India such organisation are governed by the Indian partnership act,1932 . Section 4 of this act define a partnership as The relation between person who have agreed to share profits of business carried on by all or any of them acting for all. person who enter into partnership are collectively known as firm but individually known as partners.

Basic Features
The partnership organisation has some basic or fundamental feature which have been discussed below. With special reference to the position of partnership in India. Number of person Contractual relationship No legal distinction between firm and its partner Unlimited liability

Advantages of Partnership Organisation

A partnership organisation has certain advantages as compared to the sole proprietorship or joint-stock company organisation . We discuss below these advantages.

Easy formation Flexibility Pooling of resources and skills Divisions of risk Strong credit position Less incident of tax Encouragement of mutual trust

Disadvantages of Partnership Organisation

While the partnership organisation has the above advantages. It has the following serious limitation which can not be ignored. 1. 2. 3. 4. Limited resources Unlimited liability Instability Lack of harmony

CONCLUSION
In spite of the above limitation, this form of business organisation occupies a prominent place in the business world. In advanced countries and in developing economies like india. It is playing an important role . 1. 2. 3. Capital required is small. Risk involved is not heavy. Goods of artistic nature are to be produced.