Education and Career Forum

What do you mean by partnership firms?

Originally Posted by Aish tuba

What do you mean by partnership firms?

Partnership means relation between two or more individuals who agree to share the business profits. Simply you can say that "partnership is a business entity having two or more owners."

OR

A partnership firm is an organization which is formed with two or more persons to carried a business with a view to earn profit in future.

OR

According to section 4 of the Partnership Act of 1932, "Partnership is defined as the relation between two or more persons who have agreed to share the profits of a business carried by all or any one of them acting for all".

Note: If partnership business are individually known as the "partners" and collectively as a "firm."

Minimum number of partner in partnership firm must be two. Any two Persons who invest some money to run a business collectively called partnership firm. Each member of the organization called "partner", and collectively called "Firm."

In partnership firm, it is not necessary that the partners will share profits equally. All the profits and losses are shared by the partners in agreed ratio or the capital invested by them.

In simple words, Parntership is defined as the form of business organization in which two or more individuals agree to start a business and share the profits of business as per the partnership deed.

Partnership deed is a legal document signed between individuals who agree to enter and run business firms or organization.

Parnters share the profits as per their investment which is mentioned in the Partnership Deed.

A partnership firm is a firm in which the shares of the company do not belongs to any single person but belong to more than one or two.
Whenever a businessman think to open a firm then he should have a good amount of money to open it an in order to to achieve this target he takes the help of other in form of money.
This kind of firm where the share holder is more than a single person is known as partnership firm.In this type of firm the profit as well as loss both are equally share among the partners of the company.

Partnership Firm is a type of firm in which two or more persons who have a common business plan invest capital to run a business organization.

The profit earned from the organization is shared in ratio of capital invested. Similarly loss is also shared.

As per Indian Partnership act, a legal document is signed between the partners.

Originally Posted by Aish tuba

What do you mean by partnership firms?

A partnership is an association of two or more persons to carry on, as co-owners, a business and to share its profits and losses.

The persons who own the business are individually called partners and collectively called partnership firm.