Q.a: Defining Partnership?
Q.b: Highlight the kinds of partners?
Q.c: What are the right and duties of the partners?
Ans.a: Contract Act of 1872, defining Partnership, says that:
“Partnership means a mutual relationship established amongst the people who agree to share profit in the business which is run either by all or any one mutually agreed”.
Ans.b: The partners are classified into many kinds as under:
1. PARTNER IN PROFIT.
2. NOMINAL PARTNER.
3. MINOR PARTNER.
4. PARTNFR BY LOING
Ans.c: According to the. Partnership Act, the rights and duties of partners could he stated as under:
1. Every partner has the legal right to have excess to the books accounts of the firm and also can demand for the copy of accounts.
2. if the available resources fall short to run the business activities and a particular partner is asked to provide the finances, he will he legally empowered to charge an additional profit at the rate of 6 per cent on the amount which provides in addition to his share.
3. Every partner has the right to participate in the business affairs practically. In other words he has the right to be the worker in the firm in addition to his partnership.
4. If all the partners have invested equally in the business, they are empowered to share the profits equally also except the situation when a partner has invested unequally. In this Situation, his share in the profits, of the business will be in proportion to his share of investment.
5. If a partner has paid on behalf of the firm more than his legal obligation, he has the right to claim for the compensation.