FEATURES OF

PARTNERSHIP
 MEANING OF PARTRNERSHIP
Partnership is a type of business
organization in which two or more individuals pool
money, skill and other resources and share profits
and losses in accordance with the capital they
invested.
 FEATURES OF PARTNERSHIP

• MEMBERSHIP
The minimum no. of persons required to form
partnership is two. New Companies Act 2013 has
prescribed the maximum number of members in case of
partnership firm should not be more than 100.
 FEATURES OF PARTNERSHIPERSHIP

AGREEMENT

Partnership is the result of an agreement

between two or more persons to do business.
 FEATURES OF PARTNERSHIP

• LAWFUL BUSINESS
The business undertaken must be profit-
seeking and legal as per the law of land.
 FFEATURES OF PARTNERSHIP

• SHARING OF PROFITS
The profit or loss of partnership business must
be shared by all the partners in an agreed ratio. In the
absence of an agreement profit and loss should be
shared equally.
 FEATURES OF PARTNERSHIP
• UNLIMITED LIABILITY
The liability of all the partners is unlimited.
for payment for all business debts their personal
properties can be attached if the business assets are
insufficient.
 FEATURES OF PARTNERSHIPIP

• NO SEPARATE LEGAL EXISTENCE

A partnership has no legal identity
separate from that of its partners. Therefore,
the partners are held responsible for all the
activities of the partnership firm.