Forms of Business Organisations Test - 3

Patnership at will continues at the will of all the partners. Business continue till all the partners mutually agree to do so. Business is discontinued when one or more partners wish to withdraw themselves as partners from the business.

Partnership business is not bound by any law.  It is not requred to submit or publish their financial results.  Also all the important decisions and major business activities are carried by partners only.  Hence the partnership business is able to maintain confidentiality of information relating to its operations.

Rule 10 of the Companies (Miscellaneous) Rule, 2014 provides that no partnership shall be formed, consisting of more 50 persons.  so, limit as of now is 50 partners.

A Partnership Deed/Agreement is a written or oral document which state the financial and non-financial terms and conditions related to functioning of partnership business.

the JHF business is managed and controlled by the eldest male member of family known as Karta.

Secret Partner contributes capital, takes part in theh management, shares its profits and losses and has unlimited liability towards the creditors.

Partnership gets automatically dissolved on the death retirement, insanity or insolvency of any of its partners.  However if the remaining partners desire to continue, then they may do so on the basis of a new agreement.

Since Sole proprietor is the sole owner who is responsible for all the business affairs. If the business is successful, he receives all the business profits as a direct reward for his risk bearing.

Company has a permanent or perpetual existence, i.e, its existence is not affected by death, insolvency, coming or going of the members.

Mutual agency relationship means each partner is the owner as well as the agent of the firm and agent to other partners. It means, every partner acts in the capacity of an 'agent' as well as a 'principal'.