By:- Vanshika

PARTNERSHIP
 1. Ease Of Formation

2. Larger Financial Resources

3. Combined Abilities and Judgement

4. Direct Motive

5. Close Supervision
MERITS/
6. Flexibility Of Operations
ADVANTAGESOF
PARTNERSHIP 7. Secrecy

8. Protection Of Minority Interest

9. Cooperation

10. Scope Of Expansion

 DEMERITS/LIMITATIONS OF
PARTNERSHIP
1 2

LIMITED UNLIMITED UNCERTAI CONFLICTS

RESOURCE LIABLILTY N LIFE
S

5 6 7 8

RISK OF RESTRICTION REDUCED LACK OF

IMPLIED ON PUBLIC SECRECY
AUTHORIT TRANSFER OF CONFIDEN
Y INTEREST CE
 GENERAL PARTNERSHIP LIMITED LIABILITY
PARTNERSHIP
DISTINCTION
1. The firm does not have a 1. The firm has a separate legal
BETWEEN separate legal entity. entity.

2. It may not be registered. 2. It must be registered.

3. Liability of every partner is 3. The liability of every partner is

usually unlimited limited

4. There is restriction the maximum 4. There is no restriction on the

General number of partners. maximum of partners.
Partnership &
5. The firm is dissolved on the 5. The firm is not dissolved on the
Limited lunacy, insolvency, and death of a lunacy, insolvency, and death of a
Liability partner. partner.
Partnership
 SOLE PRPRIETORSHIP PARTNERSHIP

1. Number of Owned and controlled by Partners in a firm can be up to

members one person. 50.
2. Agreement No agreement is required. There must be an expressor
implied agreement among
partners
3. Registration Need not be registered. Should be registered.
COMPARISON OF
SOLE 4. Capital The entire capital is Several persons contribute
contributed by one capital.
PROPRIETORSHIP man(owner of business)
& PARTNERSHIP
5. Management Lies exclusively with its Every partner has right to take
owner. part in the management of the
firm.
6. Secrecy Lies exclusively with its Every partner has a right to take
owner. part in management of the firm.

7. Quick One man takes all the Decisions taken though mutual
Decisions decisions. consultation between partners.
 SOLE PROPRIETORSHIP PARTNERSHIP

8. Governing No specific law which governs sole Is governed under the Partnership Act,
Law proprietorship. 1932.

9. Sharing No profit sharing and all belongs to Profit is shared between all the partners.
Profits the owner.

10. Flexibility of Is a one man show. Is carried by two or more persons.

Operation

11. Mutual No mutual agency. Every partner is an implied agent of the

Agency firm and of other partners.

12. Scale of Suitable for small - scale business. Suitable for medium – sized business.
Operations

13. Risk The owner bears all the risk. Risked are shared by all the partners.

14. Continuity Is certain Is more uncertain

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