Partnership — Flashcards

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Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. It is formed by agreement, not by status. Partners work …

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Partnership is formed to combine financial resources and managerial skills. A single person may not have enough capital, experience, or control for a growing business. In partnership, two or more pers…

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The statutory characteristics are: agreement between two or more persons, legal business, contractual relationship, profit motive, and principal-agent relationship. These are the basic legal features …

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Each partner acts as both principal and agent. A partner can bind the firm and the other partners through acts done within authority. This is called mutual agency and is one of the main features of pa…

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The general characteristics are unlimited liability, no separate legal entity, utmost good faith, restriction on transfer of interest, definite name of the firm, mutual agency, non-transferability of …

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Partnership is a contractual relationship, so only persons who can enter into a valid contract can become partners. Minors and lunatics cannot enter into a valid contract, so they cannot become partne…

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The minimum number of partners is two. Partnership cannot exist with only one person because it requires an agreement between at least two persons.

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The maximum number of partners prescribed currently is 50, subject to the government-prescribed limit.