PARTNERSHIP

I N T R O D U C T I O N T O B U S I N E SS

MBA 2015-B-I GROUP A

PRSENTED BY UNDER THE

SUPERVISION
(ASIF RASOOL 15-
(MBA-i)11 SIR ABDUL JALEEL

S H A H E E D B E N A Z I R B H U T T O U N I V E R S I T Y,
SHAHEED BENAZIRABAD
 LEARNING OUTCOMES

Define the partnership

Explain the partners
Classify the kinds of partners
Recognize the characteristics of
partnership
Advantages and Disadvantages of
partnership

2
PARTNERSHIP
AccordingtoSection4ofPartnershipAct
,
1932
Partnershipistherelationbetweenpersonswh
ohaveagreedtosharetheprofitsof
business.

AccordingtoMr.Kent

Acontractoftwoormorecompetentpersons
to placetheirmoney,efforts,laborandskills
and
CHARACTERISTICS
Themaincharacteristicsofpartnership
AGREEMENT
Partnershipagreementmaybewritten or oral.
Itis
betterthattheagreementisinwrittenformto
settlethedisputes.
AGENT
Inpartnershipeverypartneractsasanagentof
anotherpartner.
CHARACTERISTICS
Themaincharacteristicsofpartnership
BUSINESS
Partnershipis business unit and a business is
always for profit.
DISSOLUTION
Partnershipisatemporaryformofbusiness.It
isdissolvedifapartnerleaves,diesordeclare
d bankrupt.
CHARACTERISTICS
Themaincharacteristicsofpartnership
MANAGEMENT
Inpartnershipallthepartnerscantakepartor
participateintheactivitiesofbusinessmanag
ement.
NUMBEROFPARTNERS:
Inpartnershipthereshouldbeatleasttwo
partners.Butinordinarybusinessthepartners
mustnotexceed20andincaseofbanking
businessitshouldnotexceed10.
PARTNERS
Theindividualswhocompriseapartnershipar
eknownaspartners.

A person who takes part in an undertaking

with another or others, especially in a business
or firm with shared risks and profits.

Individual who joins with other individuals

(partners) in an agreement (partnership) where
gains:-
Losses,
Risks and rewards are shared among the
 KINDS OF PARTNER
1. ActivePartner:
2. SecretPartner:
3. SleepingPartner:
4. SilentPartner:
5. SeniorPartner:
6. JuniorPartner:
7. NominalPartner:
8. DeceasedPartner:
9. LimitedPartner:
10.UnlimitedPartner:
 KINDS OF PARTNER
1. ACTIVEPARTNER:
Apartnerwhotakesactivepartintheaffairsof

businessanditsmanagementiscalledactive
partner.

2. SECRETPARTNER:
Apartnerwhotakesactivepartintheaffairsof

thebusinessbutisunknowntothepublicas a
partneriscalledsecretpartner.
 KINDS OF PARTNER
3. SLEEPING PARTNER:
Apartnerwhoonlycontributesisthecapit
albutdoesnottakepartinthemanagem
entofthebusinessisknownassleepingp
artner.

4. SILENTPARTNER:
Apartnerwhodoesnottakepartinthe
managementofbusinessbutisknowntot
he
publicaspartneriscalledsilentpartner.
 KINDS OF PARTNER
5. SENIOR PARTNER:
Apartnerwhoinvestsalargeportionofcapital
in thebusinessiscalledseniorpartner.
o He
hasaprominentpositioninthefirmduetois
experience,skill,energy,ageandotherfacts.

6. JUNIORPARTNER:
Apersonwhohasasmallinvestmentinthefir
m andhasalimitedexperienceofbusinessis
calledjuniorpartner.
 KINDS OF PARTNER
7. NOMINAL PARTNER:
Apartnerwhoneithercontributesincapitalnor

doeshetakepartinthemanagementof the
businessbutallowshisnametobeusedinthe
business.

8. DECEASEDPARTNER: (EXPIRED)
Apartnerwhoselifehasexpiredisknownasdec
easedpartner.Theshareofcapitalandprofitof
suchpartnerispaidtohislegalheirsinlump
sumorininstallment.
 KINDS OF PARTNER
9. LIMITED PARTNER:
Apartnerwhoseliabilitiesarelimitedtohis
share
inbusinessiscalledlimitedpartner.

10. UNLIMITEDPARTNER:
Apartnerwhoseliabilitiesareunlimitedis
known asunlimitedpartner.
Heandhispersonalpropertybothareliable
to
clearthedebtsofthefirm.
ADVANTAGE OF PARTNERSHIP
ADVANTAGE
1. Sufficient Capital:
2. Skilled Workers
3. Contribution of Work
4. Combined Abilities:
5. Absence of Fraud
DISADVANTAGE
6. Unlimited Liability
7. Chance of Dispute among Partner:
8. Frozen Investment
9. Transfer of Rights
10.Lack of Secrecy
ADVANTAGE OF PARTNERSHIP
1. SUFFICIENT CAPITAL:
Partnershipcancollectmorecapitalinthe

businessbythejointeffortsofthepartner
sascompared to soleproprietorship.

2. SKILLED WORKERS :
Asthereissufficientcapitalsoafirmisin
a better
positiontohiretheservicesofqualified
workers.
ADVANTAGE OF PARTNERSHIP
3. DISTRIBUTION OF WORK:
Thereisdistributionofworkamongthep
artners
accordingtotheirabilityandexperience.

4. COMBINED ABILITIES
Everypartnerpossessesdifferentability,
which
helpsinrunningthebusinesseffectively,
whencombinedtogether.
ADVANTAGE OF PARTNERSHIP
3. ABSENCE OF FRAUD
Inpartnershipeachpartnercanlookafte
rthe
businessactivities.Hecancheckthe
accounts.
DISADVANTAGE OF PARTNERSHIP
1. UNLIMITED LIABILITY:
Thereisdistributionofworkamongthepa
rtners
accordingtotheirabilityandexperience.

2. CHANCES OF DISPUTE AMONG

PARNTERS
Inpartnershiptherearemuchchancesof
dispute among the partners
because all the partners are not of equal
mind.
DISADVANTAGE OF PARTNERSHIP
1. FORZEN INVESTMENT:
Itiseasytoinvestmoneyinpartnership
but verydifficulttowithdrawit.

2. TRANSFER OF RIGHTS:
Inpartnershipnopartnercantransferhis
share
withouttheconsentofallotherpartners.
DISADVANTAGE OF PARTNERSHIP
1. LACK OF SECRECY:
Incaseofmisunderstandingsanddispute
s
amongthepartners,businesssecretsca
nbe revealed.
ANY QUESTION

?
T H A N KYO U S O M U C H
F O R YO U R
AT T E N T I O N