1. Forms of Partnership &
Difference b/w Sole
Proprietorship and
Partnership
Presented By:
M.Nauman Sher
To:
Mr.Junaid
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2. Forms of Partnership
Partnership
General Partnership Limited Partnership
Particular Partnership Partnership at will
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3. What is Partnership?
The relationship which subsists between two or
more persons carrying on a business in
common with a view to private gain.
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4. General Partnership
Partners liability is Unlimited.
Each partner involved in day-to-day
operations.
Equal rights to take part in management of
the business.
Example of dental office.
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5. General Partnership
General Partnership is further divided into
two parts:
Partnership at will:
Neither for fixed period nor for a fixed purpose.
Under Section 7 of Partnership Act, known as
Partnership at will.
Based on trust and faith.
Partnership is dissolved by giving notice.
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6. General Partnership
Particular Partnership:
Partnership formed in particular adventures or
certain undertakings or for specific time.
When work is completed partnership ends.
Example of Telenor and Ufone adds.
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7. Limited Partnership
Only invest in business.
Not concerned with management.
Concerned with dividend.
Liability is Limited.
Example of opening of a Hotel.
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8. Difference b/w Sole
Proprietorship and
Partnership
Sole Proprietorship Partnership
Owner
One person ownership. Minimum two persons
Maximum twenty.
Formation
It can be established easily. Comparatively difficult
to establish.
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9. Difference b/w Sole
Proprietorship and
Partnership
Division of profit &loss
Gets all profit and bears loss. Profit and losses are
shared as per agreement
Regulation of Business
No special act or ordinance Governed by Partnership
to govern the working. Act of 1932.
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10. Difference b/w Sole
Proprietorship and
Partnership
Raising of Capital
Resources and raising loan Amount of owner and rai-
is very limited. sing loan is easy.
Scale
On small scale due to limited On large scale due to
resources. more resources & ability.
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11. Difference b/w Sole
Proprietorship and
Partnership
Management
Business is run and manag- Managed and run by all
ed by one person. or anyone acting for all.
Registration
No benefits. Not compulsory but many
benefits.
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12. Difference b/w Sole
Proprietorship and
Partnership
Question of succession
Ownership passes on throu- Ownership is implemen-
gh succession. ted as per agreement.
Business Secrets
Business secrets are closely Business secrets are kn-
guarded. own to all partners.
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13. Difference b/w Sole
Proprietorship and
Partnership
Incentive to work
Devotes entire energies to Incentive to work is not
successfully operate and found so much as in Sole
maximize profit. proprietorship.
Dissolution
Dissolution is as easy as it’s Dissolution takes place
formation. by an agreement or by
the order of court.
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14. Conclusion
Sole Proprietorship or
Partnership both have it’s importance
on different levels. For instance, Sole
Proprietorship is suitable for small scale
businesses and Partnership is suitable
for medium or large size business.
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A good example would be a dental office where two licensed dentist partner together to open the office. Together they share profits and liabilities, and there is generally a written agreement documenting the relationship. division of responsibility for expenses, and division of earnings.
This type of partnership is neither for a fixed period. It continues its business for any length of period depending upon the will of the partners. Under Section 7 of the Partnership Act, where no period is specified for the duration of the partnership, it is known as partnership-at-will. The partnership-at-will continues up to the time till the partners have faith in each other. A firm can be dissolved by a partner by giving notice in writing to his fellow partners. The partnership will stand dissolved from the date of such notice.
or instance if Telenor and Ufone agrees that in Pakistan they will not target each other on adds... means its only for adds they can target each other’s sales etc in this case its specifically referring to adds only, so this is called particular partnership.
I personally have question regarding the question of succession, that if the sole proprietor dies and his son or daughter is less than 18, then what will happen?