Partnership firm is an association of two or more persons. They are known as partners. They carry on business as joint owners. They share profit and losses. They bear all risks and combined their capital and managerial skills for mutual advantage.
A partnership deed guides partnership firm. It is an agreement among partners. The partners are collectively known as partnership firm. Partnership is suitable for professional services, wholesale and retail trade, small and medium industries.
Partners are persons associated with partnership firm. They are joint owners of partnership firm. They take risks and share profits and losses as per partnership deed.
Also Read:
The essential elements of partnership firm are :
* There must be two or more persons. There is no maximum limit.
* Partners carry on business in the name o firm.
* Partners enter into an agreement through partnership deed.
* Profit and loss is shared according to agreement.
* There is joint ownership and control.
* The liability of partners is limited.
