Meaning and characteristics of a partnership.
Answer Text: 2. PARTNERSHIP:- This is a relationship between persons who engage in a business with an aim of making profits/ an association of two or more persons who run a business as co-owners.- The owners are called Partners.Characteristics of a partnership.(a) Capital is contributed by the partners themselves.(b) Partnership has limited life that is it may end anytime because of the death, bankruptcy or withdrawal of partners.(c) Each partner acts as an agent of the firm with authority to enter into contracts.(d) Partners are co-owners of a business, having an interest or claim in the business.(e) Responsibility, profit and losses are shared on an agreed basis.(f) All partners have equal right to participate in the management of the business.- This right arises from the interest or claim of the partner as a co-owner of the business.
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