Beruflich Dokumente
Kultur Dokumente
Assistant Professor
AIOU
Sole Proprietorship
Partnership
Joint Stock Company
Other Forms of Business Ownership
What is a Sole Proprietorship?
Key Features of Sole Proprietorship
Advantages of Sole Proprietorship
Disadvantages of Sole Proprietorship
A sole proprietorship is a business owned
and managed by one person.
The owner of a sole proprietorship has
complete control over the business assets
and its operations. He is legally responsible
for all debts and legal actions against the
business. A sole proprietorship is suitable for
small scale businesses.
Examples include Kiryana Store etc.
Easy to Form and Wind-up:
Independence of Decision Making:
Direct Motivation:
Keeping Business Secrets:
Close Personal Relations:
Limited Capital:
Unlimited Liability
Inefficient Decision Making
Limited Size:
Lack of Experts:
What is a Partnership?
Major Characteristics of Partnership
Kinds of Partners
Advantages of Partnership
Disadvantages of Partnership
Contents of the Partnership Deed
Registration of Firm
Rights of the Partners
Duties of the Partners
According to the Partnership Act 1932, a
partnership is a relationship between
persons who have agreed to share profits or
losses of a business carried on by all or any
of them acting for all.
The persons who join partnership are
individually known as partners and
collectively as a firm.
Limited life
Unlimited liability
Co-ownership of property
Participation in income
Partnership agreement
Ordinary or Active Partner is one who has
invested capital in the business and who takes
active part in the conduct of business.
Dormant or Sleeping Partner retains his capital
in the business but refrains from taking any
active part in its management.
Nominal Partner is one who neither contributes
any capital nor takes any active part in the
management but merely lends his name and
credit to the firm and thereby incurs the liability
of a partner.
Quasi Partner retains his capital in the business
as loan after he has retired from the firm and
receives interest o his loan.
It refers to a partnership firm registered
with the Registrar of Firms. It is optional for
a firm to get register itself with the
government department.
A partnership can be registered in the office
of the Registrar of Firms located in the
District Administration.
A Registrar of Firms works in the District
Administration and receives applications
from the partners of the partnership firm.
Advantages: Disadvantages:
Division of Risk: Unlimited Liability:
Team Work: Uncertain Life:
Profit Incentive: Lack of Public
Ease of Dissolution Confidence:
Tax Advantage: Limited Capital