Question

What Is the Importance of the Partnership Deed?

Answer 1

The following are the importance of the partnership deed:

1. It provides transparency regarding the role, responsibility and liability of each partner.
2. Any kind of misunderstanding or dispute between the partners can be resolved based on the rules and regulations laid down in the partnership deed.
3. Helps in clearing any kind of doubts regarding the use of sharing of profit and loss.
4. It gives a clear idea about the salary, commission and interest paid to the partners for contributing capital to the business.

Also read:

• MCQs on Partnership
• Partnership Deed
• What Is Partnership
• Difference Between Sole Proprietorship and Partnership

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