Question

Write short notes on the following.

Type of partnership firm.

Answer 1

Partnership firms can be classified into the following categories:
i. On the basis of duration:

a. Partnership at will: This partnership exists as long as the partners wish to carry it.

b. Particular partnership: This partnership is formed to accomplish a particular project.

ii. On the basis of liability:

a. General partnership: Under this partnership, the partners have unlimited liability. Also, its registration is optional.

b. Limited partnership: Under this partnership, the liability of the partners is limited to the share agreed by them in the partnership agreement.

iii. On the basis of registration:

a. Registered partnership: This partnership is registered under the Indian Partnership Act 1932.

b. Unregistered partnership: This partnership is not registered under the Indian Partnership Act 1932.