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MGT211 Lecture 04

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8 views

MGT211 Lecture 04

Uploaded by

graphicsdesign638
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Partnership

Introduction to Business
Lesson 04
 Unlimited Liability
 Partners will have to pay all the debts of the
Disadvantage business even from their personal property.
s of  Shorter Life
Partnership  Partnership ends when one of the partners dies or
becomes insane
 Limited Capital
 Partners run the business from their own capital.
Disadvantage Sometimes, that capital becomes limited to meet
s of the requirements of the business.
 Lack of interest
Partnership  Profit is divided among the partners. So, partners
do not take keen interest in the business.
 Slow Decision Making
 Partners might have different point of view
Disadvantage regarding a particular matter. So, decision making
s of is relatively slow.

Partnership  It is difficult to transfer the rights of partnership.


 There is always a chance of conflict.
 Active Partner is one who participate in all the
affairs of the business.
 Secret Partner is one who has invested in the
Types of business but he/she is not known to general public.
Partners  Sleeping Partner is one who is not very active in the
affairs of the business.
 Senior Partner is one who has invested the
Types of maximum amount in the business.
Partners  Junior Partner is one who has invested the
minimum amount in the business.
 Partnership at will
 Life of the partnership depends upon the will of the
partners.
Types of  Limited Partnership
Partnership  That business in which at least one partner has the
limited liability.
 Investor is liable to the amount, he/she has invested
in the business only. This is called Limited Liability
 Limited Partnership
 There will be at least one partner who has the
unlimited liability.
Types of  Particular Partnership
Partnership  Partnership formed for a particular purpose.
 It is dissolved automatically at the achievement of
the purpose.
 By Notice
Termination  A partner can terminate partnership by giving
notice to other partners due to any reason.
of  Upon Death
Partnership  Partnership will automatically be terminated at the
death of any partner.
Partnership  A document that contains the terms and conditions
Deed of the business.
 Date on which the agreement was made.
 Name of the business.
Contents of  Nature of the business.
Partnership  This clause will cover the scope of the business.

Deed  Names, addresses, telephone Numbers and emails


of the partners.
 Capital of the business.
 If duration is attached with any business, that
should clearly be mentioned in the partnership
Contents of deed.
 Duties of the partners.
Partnership
 Whether any partner is entitled to salary. If yes,
Deed how much amount should be given to him as salary.
 Profit distribution ratio.
 Whether partners are entitled to withdraw money
Contents of from the business. If yes, procedure of withdrawals
should also be written in the partnership deed.
Partnership  Arbitration
Deed  In case of a conflict, how that conflict would be
resolved before going to the court.
 The partner should read the partnership deed
carefully, add as much clauses as possible and
never take anything for granted.
 Every partner has the right to:
 Participate in all the affairs of the business.

Rights of the  Get his/her share of profit from the business.


 Leave the partnership according to the terms and
partners conditions of the partnership deed.
 Claim the salary against his/her services.
 Participate in the management of the business.

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